How to choose the right tenant coverage
It’s time to choose a tenant coverage option. You found the perfect place to rent. You love the area and can’t wait to move in. There’s just one last step to complete. You need to get insurance to protect yourself. You’re in the market for tenant insurance.
Why do you need tenant insurance coverage?
Tenant insurance coverage is about your own protection. You’re legally liable for anything that happens under your roof. You’re need to insure your personal belongings. What happens if you need to find a new place to stay in the event of a flood or more serious damage (anything could happen)? The last thing that you want to worry about is dealing with a lawsuit if someone falls down or gets injured at your place.
This Toronto Star article makes an interesting point on a tenant’s legal liability:
“For example, you could be liable if your toaster oven causes a fire and it affects other units, or if you accidentally leave a tap on in the bathroom and the water causes damage.”
You don’t want to be left with the tab for the damages/harm caused to other units and tenants. Can you imagine how much that would cost?
Here are some tips to help you choose tenant insurance:
Think of your valuables
The Insurance Bureau of Canada website outlines the two types of coverage:
“There are typically two types of coverage offered for tenant insurance: all risks and named perils. With all risks, all of your contents (except those specifically excluded) are covered. A named perils policy covers only perils that are specifically stated.”
This means you need to think about your valuables. Is your unit filled with treasures? Do you have possessions that you’re worried about? If so, then you need to have everything insured just so you can sleep easier at night. Without the proper insurance, you have nowhere to turn if anything gets damaged or if you get robbed.
Update your personal belongings inventory
Before you decide on a tenant insurance policy, you should make a list of your most valuable possessions to ensure that they’re protected. Then you should make it a habit to update this annually so that your most prized belongings are covered.
Find something within your budget
You don't have to spend a fortune on your tenant insurance policy. You can find something simple for your small condo. You can also limit the amount of items that you protect if you’re looking to save money.
Good luck with finding the right tenant insurance for your situation. You’ll feel better knowing that you’re protected. The expense may seem like a pain when you have to deal with everything at once, but it’s going to be worth it in the long run.