Tenant insurance: This is serious business

You’ve probably already heard heartbreaking stories of families who lost everything after a fire in their home.

Many tenants still mistakenly believe that the landlord’s insurance fully protects them. However, this is not the case.

The landlord’s insurance covers the building—but not your personal belongings or your personal liability. That’s why tenant insurance is essential.

1. To protect your personal belongings

Furniture, clothing, appliances, computer, television, bicycle… Even if you feel you don’t own many valuable items, the cost of replacing them can quickly add up to several thousand dollars in the event of a fire, theft, or water damage.

Without tenant insurance, these losses are entirely your responsibility.

2. To cover your personal liability

If a loss occurs and you are held liable—for example, a fire caused by a candle or water damage resulting from a forgotten tap—you could face claims from the landlord or other tenants.

Tenant insurance includes personal liability coverage that can help cover legal fees as well as compensation costs.

3. Because the landlord’s insurance does not cover you

The landlord’s home insurance is designed to protect the building, not the contents of your unit or damage caused by your actions. Without tenant insurance, you will have to personally cover the costs related to a loss for which you are responsible.

An increasingly common requirement 

More and more landlords require proof of tenant insurance before signing a lease. This protects all parties involved and demonstrates your seriousness as a tenant. 

Special case: students 

A full-time student temporarily living outside the family home may sometimes be covered under their parents’ home insurance policy. However, once one of these conditions is no longer met, this coverage ends. It is therefore essential to verify your situation with an insurance broker.

In summary, Tenant insurance allows you to:

• Protect your personal belongings
• Be covered in case of personal liability
• Avoid significant costs following a loss
• Meet your landlord’s requirements
• Rent with peace of mind

Need a home or tenant insurance?

Contact a broker at Orbit Insurance Services.