Why tenants need tenant's insurance? | Get $20 off your quote
Home insurance isn’t just for homeowners—it’s important for renters as well. But plenty of renters feel
that they don’t own enough stuff to make insurance worthwhile.
If you’re on the fence about tenant insurance, you should know that it’s about more than just protecting your possessions (though it certainly does that). Keep reading as we explain why every renter should have an active tenant insurance policy.
What does tenant insurance cover?
Home insurance for tenants, a.k.a. tenant insurance, is important for several reasons. Most notably, tenant insurance protects your belongings. If any of your possessions are damaged by an insured loss, your tenant insurance policy will pay to replace them. A covered loss could be anything from a fire, to a burglary, to accidentally dropping your new TV down the stairs.
A good tenant insurance policy protects your stuff even while it’s temporarily away from home. If someone steals your suitcase full of valuables while you’re on vacation, your tenant insurance policy can help cover the cost of replacing those items.
Many tenants feel that they simply don’t own enough stuff to make insurance worthwhile—but you’d be surprised at how fast things add up. Plus, when you insure your stuff for replacement cost coverage, your insurance policy will pay to replace damaged items with new items of similar quality—that can cost a lot more than you’d expect.
In addition to protecting your possessions, there are two other important coverages included with tenant insurance: Additional Living Expenses, and Liability Coverage.
Additional Living Expenses
Additional Living Expenses, or ALE, is a coverage included on tenant insurance policies in Canada. ALE will help you cover extra living expenses if you have to move out of your apartment following an insured loss—like a fire that damages the building.
ALE coverage will help you either pay for a hotel while repairs are completed, or for the reasonable and necessary time it takes you to find a new apartment to rent if repairs will take too long (within the policy limits, of course).ALE covers things like hotels, extra meal costs, or higher transportation costs if your commute to work is longer while you’re away from home.
Liability Coverage can help cover legal costs and damages if you’re found legally responsible (liable) for injury or damage to someone else’s property.
That includes certain kinds of damage to the apartment you’re renting. If you accidentally start a fire in the kitchen while you’re cooking, your Liability Coverage can help you cover the cost of repairing fire or smoke damage that you find yourself on the hook for.
Liability coverage can also apply if someone gets injured while visiting your home and tries to sue. That could happen on a slippery bathroom floor, or perhaps an icy walkway that you’re responsible for. You’d also be liable for injuries when your dog hurts someone, or even scares them so badly that they end up getting injured in another way; Liability coverage can help with those costs, too.
Why should I get tenant insurance?
1. Tenant insurance is important (and sometimes mandatory)
In addition to all the important reasons above, sometimes you actually have to have tenant insurance. Many landlords require their tenants to hold active tenant insurance policies for as long as they’re renting—and more are requiring it all the time. You can get discounts on your insurance if you’ve had an active policy for a while, so it pays to start now.
2. Tenant insurance is affordable
The price of a tenant insurance policy varies depending on where you live, and which insurance provider you’re speaking to. But, most tenant insurance policies cost no more than the price of a few lattes or bubble teas each month.
3. Tenant insurance is easy to get
Buying home insurance might sound intimidating, but if you choose the right insurance provider, it’s actually a snap—not much harder than ordering a personalized pizza online.
With an online insurance provider like Square One, you can get a personalized tenant insurance quote in as little as 5 minutes. Just provide a few details about yourself and your home, choose the coverage you want, and you’re done! Tenant insurance policies from Square One start at as little as $12/month and you get $20 immediate discount.