What Is Renters Insurance?
If you're renting an apartment, condo or home, you'll need to protect yourself and your personal belongings. Even though you don't own the space, you still face many risks, like theft, fire or storm damage.
Why Get Renters Insurance?
As a renter, your landlord insures the physical structure of your apartment, condo or home. But that doesn't protect your belongings inside the rental. If you rent from a homeowner, your belongings won't be covered under their landlord insurance policy. That's why renters insurance is important to have, so you can fix or replace your belongings if they get damaged from a covered loss, like:
It's important to know what kinds of damage and events your renters insurance policy covers. Your policy will tell you what's excluded from coverage. If you need additional coverage, you can get a special personal property coverage endorsement. This will slightly increase your premium, but it extends your protection to include losses specifically excluded in a standard renters insurance policy.
What Does Renters Insurance Cover?
Your renters insurance coverage can help you in several ways. Your standard policy includes different types of coverage, such as:
'New for Old' Protection
Our "New for Old" protection replaces your covered possessions with new items of equal quality, regardless of their age or condition.
Built-In Improvements
Your policy covers any built-in improvements you've made to your rental, such as bookshelves or wallpaper, for up to 10% of your personal property coverage. So, if you have $15,000 in personal property coverage, your policy could cover up to $1,500 in damages to your built-in improvements.
Living Expenses
If a covered loss prevents you from living in your rental, your insurance policy can help cover your living expenses, such as hotel fees or food costs. Your renters insurance covers these expenses up to an additional 20% of your personal property coverage. For example, your $15,000 policy can cover up to $3,000 of living expenses.
Liability Claims
If you're legally liable for the accidental death or injury of another person at your rental, your renters insurance has liability coverage which may help pay for costs up to your policy limit. Even if you're not legally responsible, your insurance policy can help pay for your defence costs.
Medical Payments
Your renters insurance can help pay for someone's medical bills if they get hurt in your rental. This coverage applies no matter who's at fault.
Property Damage
If you or a family member damage someone else's property, your renters insurance can cover up to $1,000 to fix or replace it.
What's Not Covered by Renters Insurance?
Your renters insurance doesn't cover certain natural disasters, such as floods or earthquakes. To protect your belongings from this type of damage, you'll need to buy a separate policy, like flood insurance.
Even though your renters insurance doesn't cover flooding caused by weather, it does cover water damage from a leak in your rental or a connecting unit.
Insurance companies look at many factors when determining your renters insurance cost, such as:
If your rental is in a neighbourhood with a history of less claims, your renters insurance policy may be lower than the average. If you're renting an apartment that's more inland, your renters insurance cost will likely be lower than if you lived in a waterfront unit.
Common Questions About Renters Insurance
**Can a Landlord Require Me to Carry Renters Insurance?**
Yes, it's legal for your landlord to require you to carry renters insurance before you sign a lease. You'll likely have to show proof of insurance if you renew your lease to show your landlord you still have coverage.
**How Do I Know How Much Renters Insurance Coverage I Need?**
There's no easy answer to how much renters insurance coverage you'll need. That's because everyone is different, and your coverage needs depend on different factors. A good rule of thumb is to think about how much it'd cost to replace your belongings if you lost everything. This can give you a good idea of how much renters insurance coverage you'll need.
**How Quickly Can I Get Renters Insurance?**
You can get a renters insurance policy the next day after you get your quote. It's fast and easy to get a quote. After reviewing your coverage limits, your policy can go into effect shortly after signing the paperwork and paying your premium.
