There are numerous things that you need to prepare for when renting a property. This includes obtaining information for the rental application, ensuring you have enough money on hand every month to cover rent and all your expenses, and arranging all the monthly utilities. But there's one other component that is one of the most important to set up – tenant's insurance. Tenant's insurance will protect you in the event that someone injures themselves on your property or if there is a break-in and your belongings are stolen or damaged. It will also provide coverage if there is a fire or any water damage caused in your unit and in another tenant's unit, among other things. Learn more about why tenant's insurance is necessary and how you can find the best coverage at the lowest rate.
Is Tenant's Insurance Necessary?
Let's say you invite a friend over for a small get-together and they trip down your stairs on their way out, breaking their collar bone. This small incident could prevent them from working for the next few months, with treatment costing thousands of dollars. If they don't have coverage, their only option is to sue you for compensation. If you don't have tenant's insurance, you would have to pay for their losses out of pocket, which could leave you in financial ruin if you don't have the available funds.
Another example is if you light a candle and it causes a fire. If that fire causes damage to other units in the property and their belongings inside, you would be responsible for replacing them. That is of course, unless you had tenant's insurance. Depending on the limitations in your policy, it might also cover a hotel stay if you needed to relocate while the repairs were being made.
Tenant's insurance is absolutely necessary if you share your rental unit with another tenant or if you live in a neighbourhood that is prone to break-ins. Any stolen belongings, like electronics, clothes and furniture, that were outlined in your policy would be covered under the tenant's insurance.
Accidental damage is often included as well. So if you were to spill tea all over your laptop or drop your phone and break it, it would be covered.
A Small Expense for Comprehensive Protection
Tenant's insurance doesn't cost much, but it's worth every penny. Most policies range between $10 to $30 a month– far less than the standard phone or internet bill– and will cover tens of thousands of dollars worth of damages. It will also provide you with liability insurance that will protect you in case you are sued for someone's injuries that occurred inside your unit.
Most insurance companies will let you personalize your coverage, so you don't have to pay for more than what you need. But it's important to note that not all policies are created equal. Do your due diligence by comparing insurance providers' terms, premiums and deductibles before deciding. An insurance broker can assist you with making this decision and help you find any discounts that are currently available.
Tenant's insurance is the best way to protect the things your finances and the things you love. It's also generally required by most landlords as part of your lease agreement. So if you're planning on renting a property, it's wise to arrange tenant's insurance coverage, whether it's required or not, to protect you against any unforeseen circumstances that could arise during your tenancy.
At Rent in Ottawa, we care about our tenants and want to make sure they are always protected from life's unexpected hurdles. Whether you're looking to rent or want to rent out your space, we'll help guide you through the entire process, so you know exactly what you need to keep yourself protected.