In Quebec, slightly less than two out of three tenants are adequately protected by tenant insurance. Although it isn’t mandatory, having such insurance can avoid you many problems in the event of a loss or incident. Here’s how.
1. Tenant insurance may cover the replacement of your belongings.
Contrary to a persistent myth, the landlord home insurance does not cover the belongings of all occupants—only the policy owner’s and that of the persons listed on the policy. In the event of theft or loss, tenant insurance covers your lost or damaged belongings and their replacement if you have opted for “replacement value.”
Think you don’t own much? It’s amazing how much things can add up when you make a property inventory: appliances, electronics, sports equipment, clothes, books, games, kitchen and bathroom cabinets, etc. Even if some items were gifts or bought at a discount, the cost of replacing them isn’t always cheap!
2. Tenant insurance protects you from lawsuits.
Tenant insurance includes civil liability protection. Should you be held liable for unintentional damage (such as if you forget that you left your stove on and start a fire that causes damage to your building), tenant insurance will cover your civil liability costs if the building owner demands that you pay. The same applies should you be held liable if someone is injured on the premises, by tripping over your child’s toy left at the top of a shared staircase, for example.
3. A loss as a tenant can be expensive!
In 2019, the average cost of a loss for a tenant was over $7,000. As inflation also affects the price of work and materials, the amount increases every year. How can such an elevated bill be explained? In an apartment building or complex, the consequences of an oversight can be even more serious than in a single-family home. For instance, a poorly connected washing machine on a fourth floor will not only damage the flooring under it, but also the apartments below.
4. Should an incident occur, tenant insurance helps to pay for food and accommodation.
If a fire or other covered loss renders your home uninhabitable, you’ll need a place to stay and food until you can return. When the work takes weeks or months, moving in with family or friends isn’t always possible. Your tenant insurance may cover your additional living expenses for a certain time.
5. Tenant insurance costs less than you think.
On average, the annual premium for tenant insurance is less than a dollar a day. That’s more than affordable to protect everything you own and prevent bad luck or an oversight from turning into a major financial headache.
