When you consider the cost of housing in Ontario, it’s simply not possible for many to purchase a home of their own, making renting a place the only realistic option available.
If you’re going to be renting, there are many things to consider before you move in - one of the most important being purchasing tenant insurance.
Tenant insurance is designed to protect you in the event something bad happens to the rental property. As a tenant, you need protection from the same potential issues that could arise if you were a homeowner - things like theft, vandalism, or damage due to fire or water, to name a few.
Many of us don’t realize how much “stuff” we have. Among our possessions are necessities like clothes and shoes, and more expensive items such as electronics and kitchenware. While things are replaceable, think about how costly it could be if your possessions were destroyed due to an unforeseen circumstance in the home you’re renting.
Tenant insurance includes contents coverage, which, depending on the type of coverage and circumstances, will allow you to submit a claim to replace damaged or destroyed items. Without it, you may need to pay thousands of dollars out of pocket to replace and rebuild.
According to the Insurance Bureau of Canada, before you purchase your tenant insurance, it’s a good idea to go around your home and take inventory of what you have and how much it costs. Once you have a tally of the combined worth of your possessions, you will have a better sense of the appropriate coverage you’ll need.
After you do an inventory of your possessions, the Insurance Bureau recommends taking photos or videos, especially of your more valuable items. It’s also a good idea to save and store receipts and warranties in a safe place outside your home, or in an electronic file. This way, if you have to make a claim, you have proof of ownership and value.
Tenant insurance is not only a good idea for adults who are renting a home, but also for students planning to move out of their family home for college and university.
Post-secondary education costs a lot of money, especially when you include other expenses besides tuition and rent. Things like computers and other technology, furniture and kitchen essentials such as microwaves, coffee machines and pots and pans, all add up.
While renting an apartment or a room in a home off-campus, it’s important to protect your possessions from any potential loss and the cost to replace them if an unforeseen circumstance should occur.
While the fall semester may seem far in the future, it’s never too early for students to consider tenant insurance and to be prepared.
It’s important to note that while having tenant insurance is not mandatory, landlords are increasingly requiring potential tenants to acquire it before a lease or rental agreement is signed.