If you’re a tenant wondering how to choose the right tenants insurance policy in Ontario, you’ll need separate coverage for your belongings and the losses and injuries of those visiting you, as your landlord policy won’t cover these expenses. This is called tenants insurance, and while not legally required, it is highly recommended.
While there are plenty of options, finding the right renter’s insurance isn’t easy, especially if you’re a first-time renter. Here are some tips for choosing the right tenants insurance policy in Ontario.
Start By Assessing Your Needs
Before researching the different tenants insurance policies, consider your needs:
- Make a list of your personal belongings and their value to see how much coverage you need for them.
- Think about the liability coverage you want by considering the type and number of losses you want coverage for. You can typically choose from specific damages, broad coverage for your damages but only named perils payout for belongings, and comprehensive coverage for every type and number of perils.
- Consider the potential additional living expenses you might incur in case the space you rent becomes inhabitable.
Some insurance companies offer one of these options, while others provide all. While more comprehensive coverage provides better protection, it’s also more expensive.
Think About Additional Coverage
Besides the standard liability, personal belongings, and additional living expenses coverage, you might also want to consider extra coverage options to add to your policy.
These depend on your individual circumstances, and in Ontario, can include sewer backup, overland water, groundwater, earthquake, identity theft, and floater coverage. Each has its limitations, too, so check this before you decide on the policy.
Some might be included in the comprehensive package as well. For some circumstances, like when renting a basement, it’s a good idea to find a policy that offers as much water damage coverage as possible.
Compare Insurance Providers
Once you know the type of coverage you need, start researching various insurance providers. Check out their reputations by looking for online reviews of customer service, claims process, etc. You can also hire an insurance broker who will do all the hard work for you.
When looking at individual insurers, research how reliable their coverage options are. Ask whether the insurance policy offers a loss settlement, which is an excellent option to look for in a tenant insurance policy. It determines the payout you’ll get if your belongings get destroyed. You’ll either get replacement costs or actual cash value, which factors in the depreciation.
The latter will pay more but will likely come with a higher premium, too, so choose what you consider the best option based on the value of your items.
Obtain Multiple Quotes
Get as many quotes as possible from several insurance companies to have a better price and coverage comparison selection to choose from. If you have trouble navigating the quotes, contact your local insurance brokers to help you out, or use an online comparison tool to find the most competitive prices.
Ask the insurance companies or your broker for discounts and promotions. For example, some insurers offer discounts for non-smokers or those who maintain an excellent credit score. Others provide bonuses or discounts if you install your own safety devices like smoke detectors and security cameras.
Customize Your Policy
Once you have chosen a suitable insurance carrier, you can think about customizing your policy to suit your needs. This includes finding the optimal deductibles, adjusting coverage limits, and considering additional coverage based on your circumstances.
For example, you can save money on your tenant’s insurance by bundling this policy with others you have at the same insurer, like auto insurance, for example. You can opt for a higher deductible to lower your premium, but be prepared to pay this if you need to file a claim.
Read the Policy Carefully
Before finalizing and signing your tenant insurance policy, examine it carefully to ensure you fully understand the claims process, requirements for cancellation or renewal, and exclusions that apply.
Ensure you’re okay with the policy limit, which is the maximum you can get paid when making a claim for something covered under the policy. Find out if there is a single limit for each item you claim among the losses and a separate one for a liability claim.
When purchasing your tenant’s insurance policy, choose a limit that can cover replacing your belongings. Don’t automatically aim for higher coverage because then you’ll be paying for coverage you don’t need.
When determining a limit for tenant liability and additional living expenses, consider your needs and risk factors, how many people are visiting you, the value of their belongings, how much you can expect to pay for staying elsewhere if forced to move out temporarily, etc.
Final Thoughts
The first step in finding the right tenant’s insurance policy in Ontario is assessing your needs. By establishing the type of coverage you need, you can head to insurers and see what they have to offer. Besides comparing quotes, you can also negotiate the customization of your policy.
Last but not least, don’t forget to read the fine print to ensure you’re not missing any limitations to your coverage and won’t face any unpleasant surprises in case you need to file a claim in the future. If you need any help navigating the complex world of tenants insurance, then contact Buckler Insurance today, and we’ll be happy to guide you in finding the best tenants insurance policy in Ontario.
