Many people think that insurance is something only homeowners have to worry about. The truth is, if you are renting your living space, there are many reasons to have tenant insurance. In fact, many Ontario landlords actually require their tenants to get insurance. So, if you’re about to jump into the rental market, or you’re already living in a rental property, here’s why you should protect yourself with tenant insurance.

1. Your belongings may not be covered by your landlord’s insurance.

While your landlord is responsible for insurance on the building itself, in most cases this will not cover your personal belongings. Tenant insurance would protect your computer, furniture, electronics, clothes and jewellery against fire, flood, smoke and theft. To determine how much insurance you need, create a list of your belongings and take pictures of one-of-a-kind items, like artwork or jewellery, before speaking to a licensed insurance agent. While you’re at it, ask about Home Equipment Breakdown Coverage¹, which covers your electronics and appliances in the event of mechanical or electrical breakdowns, for a small additional fee.

2. You may be legally responsible if you cause damage.

Unfortunately, bathtubs overflow and grease fires happen. Not only can these damage your own space, but they can spread to neighbours, damaging their property too. As the tenant, you may be responsible to pay for any damages incurred. Tenant insurance helps you avoid this.

3. You may not be covered for water damage.

If you’re living at ground level or lower, optional water coverage protects you against damage caused by heavy rains, floods or sewer backups. It also covers you for mass evacuation expenses. In fact, many rental agreements actually list this coverage as a condition. Even if you’re living in a high-rise, this coverage protects against sewer backup and water overflow from your drains.

4. Should your living space become uninhabitable, you are responsible for your living expenses.

If your space became uninhabitable as a result of fire, smoke or a flood, where would you go and how would you pay for it? Tenant insurance would cover expenses such as a place to live until you could return home.

5. You may be personally liable if somebody is injured in your home.

Suppose a dinner guest slipped on your floor and was injured, or a courier tripped and was injured on the threshold of your apartment while getting a signature. Without tenant insurance, you could be liable and this could be costly.

6. If you share your place, your insurance may not cover your roomies.

Typically, insurance only covers you and your family members. So if you are sharing a living space, you may each need your own insurance coverage. While you can combine coverage onto one person’s policy, this can have drawbacks. If you are a full-time student, you may be covered on your parents’ home insurance policy, so have a licensed insurance agent review your policy.

Remember, your living space isn’t just a rental - it's your home. So be sure to protect what’s in it - and yourself - with a good tenant insurance policy. Start with a free no-obligation quote on CAA Tenant Insurance² online or by calling: 1-855-273-3106.

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Terms & Conditions

¹Underwritten by CAA Insurance Company, Claims administered by Mutual Boiler Re. 

²Property Insurance is underwritten by CAA Insurance Company. Certain conditions, limitations and underwriting guidelines apply.