If you are renting a house, condo unit, or home, do you need to purchase renters insurance coverage to protect yourself and your property?
Renters insurance, also known as renters insurance, usually costs between $15 and $30 per month, depending on the district you live in. But information from research firm Statistica recommends that nearly fifty percent of renters in Canada (47.8%) cite cost as the No. 1 they don’t have renters insurance. Amazingly, the Canadian Bureau of Insurance estimates that fifty percent of all renters in the country have no coverage at all.
Is it worth the money? Making that decision requires a quick summary of what renter’s insurance coverage provides, and dispelling some of the most common misconceptions individuals have about it.
What is Covered by Renters Insurance?
Renters insurance coverage typically consists of 3 elements:
- Coverage for your stuff. Many people think that the landlord will take all the trouble and risk; However, this is not real. You are responsible for securing your personal property. The owner is only responsible for securing the building — not the components you own. General renters insurance coverage will protect your personal property from damage or robbery.
- Coverage for your living expenses. If you are unable to live in your home while repairs are being made after a covered loss such as a termination, your renters insurance coverage will help cover some of the costs. Things like resort fees, meals, and moving costs are usually covered if you can’t live in your home.
- Coverage of obligations. Even if you don’t own the quarry you live in, you may still be responsible for the trouble you cause or injury to others. For example, the damage caused by a kitchen area that ends up in your home may not be limited to your space, and you can delegate costs to repair various other building components. The same will certainly apply if you leave the faucet on; it can land on you to spend on repairs to your units, as well as those below or beside you. When it comes to injuries, if someone falls in your home and is injured, you can be held liable for costs associated with points such as clinical fees and their time away from work.
Why Don’t Some Tenants Get Renter’s Insurance?
Some of the reasons renters decide to go without renters insurance seem to be based on a popular misconception:
Misconception: Renters Insurance Is Too Expensive
Renters insurance is quite affordable. Typically, a plan will earn you a pair of hundred dollars a year. Of course, the cost will be different, depending on points like how much coverage you need, where you live, your preferences and the background of the claim, for example.
Misconception: Renters Insurance Is Not Needed if You Live in a Large Area
Being in a high end area, “great” doesn’t protect you from hazards like stoppages, splash damage, and burglaries. This situation can happen to anyone, anywhere, and renters insurance can cover this peril.
Misconception: Your Stuff Is Not Worth Covering
Underestimating the cost of one’s belongings is common. Based on Statistica’s information, 24.3% of Canadians feel they don’t have many guarantees, so they don’t feel the need to protect their belongings. Don’t ignore the value of your property. Look in every room of your house, and you will see that there are a lot of furniture, electronics, clothes, small appliances, utensils, linens, and household appliances. Do you have the money to change everything you own if the worst happens, such as termination? Some individuals do.
Renting a home, condo unit, or home may seem risk-free, but your homeowner’s insurance coverage does not protect you from liability for any damage to the home or the individuals in it.
All tenants need renters insurance coverage tailored to their unique needs. Not all plans coincide, so take a few minutes to compare plans and estimates to find the coverage that works best for you.