Renting and Insurance - Why Renters Insurance is a Must-Have
Did you know that your landlords insurance will not cover the cost to replace your personal belongings should they be damaged in the event of a flood, fire, or other disasters? The problem is that many renters in Canada don’t know this or fully understand the importance of having a renter’s insurance policy.
According to statistics Canada, more than half of renters in Canada do not have renters insurance.
And with approximately one third of households in the country being occupied by renters, this means that a large portion of the population does not have protection in place should a fire, flood, water damage, or theft occur.
The Reality of Not Having Renters Insurance
Unfortunately for many renters, they do not understand the repercussions of not being insured until it’s too late. If you experience a flood, fire, and any other situation where damage is caused to your personal belongings, you lose everything that is not salvageable. Your personal belongings are not covered under your landlords insurance. This is why it’s so important to have a tenant insurance policy when renting.
Reasons Why Renters Don’t Have Insurance
One often overlooked but very important part of being a renter is protecting your belongings. For some reason, the majority of renters don’t think they need renter’s insurance. This is not a mistake that you can afford to make. Commonly cited reasons for renters not having insurance include:
- Its overlooked and it’s an afterthought for most renters
- They think they don’t need it
- They assume that its expensive and they can’t afford it
- They don’t understand the value of it
- They think they are covered under the landlords insurance
Renters Insurance Is More Affordable Than You Think!
Based on data from Statistics Canada, the average cost of renters insurance is approximately $300 per year! This works out to about $25 per month. Actual costs may be higher or lower depending on multiple factors such as where you live, your personal belongings, and other information. Plus, if you already have car insurance, renters insurance can be even more affordable as most insurance providers offer discounts when you combine home and auto insurance.
If you do not already have renters insurance, it is something that you should look into. There is no replacement for having peace of mind in knowing that you are protected, should something happen to your belongings.
Learn More About Tenant Insurance
To learn more about tenant insurance check out the following posts on this topic:
The Value of Renters Insurance
Is Renters Insurance Important?
Are You A Renter? What You Need To Know About Tenant Insurance