Just like home insurance for homeowners, tenant insurance policy is fundamental for the financial protection of renters. While not mandated by law in Ontario, a property management company or landlord might require proof of tenant coverage before letting you sign a lease.
Here we will cover several facets of tenant insurance in Ontario, including what it covers and the tenant’s insurance benefits. By the end, you should have a clear idea of whether or not this type of policy is right for you. Let’s get started!
Tenants Insurance Basics
Also known as renters insurance, tenants insurance policies primarily protect tenants’ belongings in case of fire, theft or vandalism. Policies typically include liability coverage, providing protection to other people’s property on the rental property, and compensation for another person’s bodily injury.
Tenants insurance Ontario doesn’t recompense for damages to the rental property, although landlords often have their own insurance to cover this. Keep in mind that you can’t rely on your landlord’s insurance for the protection of your own or anyone else’s property.
What Is Covered by Tenants Insurance?
The areas covered by tenant insurance in Ontario are personal belongings coverage, liability protection and coverage for additional living expenses. Let’s look at them in greater detail.
Personal Belongings Insurance
If your personal belongings get damaged or lost, this part of the tenant insurance policy has you covered. However, there are coverage limitations based on insured losses.
To avoid misunderstandings and inadequate coverage of valuable items, provide a comprehensive list of belongings you want to ensure before purchasing a policy.
In Ontario, you might expect to get personal belongings coverage for the following items:
- Appliances and other valuable electronics like TVs and computers
- Furniture
- A limited amount of jewelry
- Sporting equipment
- Clothing
Keep in mind that for high-value items, your insurers may require you to purchase additional coverage.
Additional Living Expenses Coverage
If the property you rent becomes damaged due to an event covered by the policy, like a flood or a fire, and you are no longer able to use it, Additional Living Expenses coverage can pay for another rental property and related expenses. This temporary accommodation insurance will cover you until the residence becomes usable again or you find a new place to rent.
In Ontario, you can expect Additional Living Expenses Coverage for:
- Moving and storage costs
- Hotel or rental accommodation expenses
- Laundry services
- Additional food expenditures
The amount and duration of the coverage varies from one policy to another, so it’s crucial to go over every detail to ensure adequate protection. Most insurance companies only cover additional living expenses up to a reasonable sum determined by the policy.
Liability Insurance for Tenants
Just as with auto insurance policies, this part covers injuries to another person and unintentional damages to their property while in your rental property. If this person takes legal action against you for their damages or injuries, you will have protection determined by your specific policy.
Examples of liability coverage in tenants’ insurance in Ontario include:
- Accidental water damage to other apartments
- Medical expenses of those injured while on the rental property
- Legal fees of those injured or otherwise damaged while on the rental properly
It’s critical to weigh in on your needs and potential risks before purchasing a tenant insurance policy to ensure you have adequate coverage.
Optional Coverage
Some Ontario-based insurance companies also provide optional coverage for added security, including:
Earthquake coverage – No matter how uncommon earthquakes are in the area, this coverage can still come in handy if you have lots of valuables to protect.
Identity theft coverage – You can rest easily knowing that any cost of restoring your identity and repairing your credit will be covered by your tenant’s insurance in case someone steals your identity.
Sewer backup coverage – If your belongings are damaged due to sewer seepage or blockage on the rental property, this coverage will compensate you for your losses.
What is Not Covered by Tenants Insurance in Ontario?
Traditional tenant insurance policies in Ontario don’t cover your personal property under unforeseen circumstances, like natural disasters. However, you can typically buy additional coverage, which is particularly recommended if you live in a high-risk area.
As mentioned earlier, you are also unlikely to be covered for high-value jewelry items. It’s important to check a policy to see the maximum value it covers and whether or not you’ll need to pay for additional protection.
Should You Buy Tenant Insurance in Ontario?
Although it’s not legally required in the province, it’s generally recommended for every tenant in Ontario to purchase tenants insurance. It can come in handy in many situations and can save you from further costly and time-consuming troubles in case something happens to your property or someone else’s, or they get injured while visiting your rental property.
For the same reason, many landlords require proof of tenant’s insurance before approving new tenants. With adequate coverage, both you and your landlord can limit your losses in unforeseen circumstances.
Even if your landlord doesn’t require it, if you decide to purchase this insurance, make sure you do it before you move into the rental property. This way, you’ll have protection from the second you officially move in.
Final Thoughts
Tenants insurance coverage Ontario can be a great way to give renters some peace of mind. Whether your property gets damaged, someone gets injured on the rental property, or the place becomes inhabitable due to damages, your expenses should be covered with a great tenant insurance policy.
It’s important to do your research and speak to an expert so you can make an informed decision. If you’re interested in tenant insurance, then make sure to get in contact with Buckler Insurance today. We’ll happily talk through your options to find the perfect solutions for you.
