Many renters incorrectly assume that they don’t need insurance. Only 37% of renters have renter’s insurance, compared with 95% of homeowners who have home insurance coverage. Why do so few renters have insurance protection? There are a few reasons:
- Renters assume they’re covered by their landlord’s insurance coverage.
- Renters don’t think they have anything worth insuring.
- Renters may undervalue the total worth of their belongings.
- They don’t realize renter’s insurance also covers personal liability and additional living expenses in addition to property coverage.
This article will give renters five reasons they should get a renter’s insurance policy today.
#1. The cost of your stuff really adds up (and renter’s insurance can cover it).
A renter’s insurance policy protects against losses to your personal property including:
- Furniture (that doesn’t belong to the landlord)
- Electronics
- Jewellery
- Clothing
- Sports equipment like bikes
- Books
- Toys
- Musical instruments
- Kitchen gadgets
Even if you don’t think you own much replacing all your stuff all at once can really add up. The average renter owns between $20,000 and $40,000 worth of personal property. Start researching the cost of replacing everything you own and you’ll see it starts to add up quickly!
Renter’s insurance would replace your belongings if they’re damaged or destroyed by an insured peril such as theft, fire, and more.
Make sure you have a rough idea of how much your property is worth. One question you’ll be asked when buying renter’s insurance is how much insurance you want. You should choose an amount that is close to the value of all of your belongings to ensure you’re not under-insured or over-insured.
#2. Renter’s insurance is affordable.
Compared to home insurance, renter’s insurance is very affordable. Typical policies will cost between $15 to $20 per month or around $200 per year.
Of course, your actual rental insurance premiums will depend on a few factors:
- Where you live
- Which coverage you choose
- Your deductible
- Your demographics
- Your insurance history
- Damage mitigation devices in your rental unit
- The type of rental including building materials, age of the building, type of heating/electrical/plumbing systems and other factors
You may also get discounts, particularly if you get renter’s insurance with the same company as your car insurance, as many insurers offer bundle discounts.
Regardless, renter’s insurance is very affordable for a lot of protection.
#3. Renter’s insurance provides personal liability coverage.
Renter’s insurance includes personal liability coverage which helps cover expenses if someone is hurt or has their property damaged by your unintentional actions. This includes medical payments and legal expenses such as defence costs and settlements.
We recommend at least $1 million of liability coverage, although additional protection is available.
#4. Renter’s insurance covers your belongings when you travel.
We don’t all stay at home all the time and with renter’s insurance, your personal belongings are covered whether they are in your home, car or with you while you travel. This applies whether you’re camping in Alberta or travelling to Mexico.
#5. Renter’s insurance can cover additional living expenses.
If you’re forced from your home due to a covered claim or a mandatory evacuation order for a covered peril such as a fire, renter’s insurance can cover your additional living expenses. These are the extra expenses incurred while you’re unable to be at home including accommodation, transportation and food costs.
There are limits to the amount of additional living expenses are covered and you’ll likely need to pay upfront and keep receipts to be reimbursed later.
The bottom line is that as a renter, you’re not covered under your landlord’s insurance. Renter’s insurance is affordable and offers a lot of benefits for the price. If you’re interested in learning more or getting a renter’s insurance quote, contact one of our brokers today.
