Do you have insurance on your rented home or apartment? There's a good chance that you don't, since the Insurance Bureau of Canada says that about half of all renters don't have tenants insurance, and younger renters are especially likely to be lacking in insurance. If you're one of the renters that doesn't have any insurance, take a moment to find out why it's so important to consider purchasing a tenants insurance policy.
You Could Be Evicted
In some cases, it's possible that you could be evicted for not maintaining tenants insurance. Your landlord may be concerned about his or her own liability, and prefer to have tenants who do carry tenants insurance. It can be tricky to decide whether or not a tenant should be evicted for not having insurance, and it's really up to the judge who decides the case. Do you really want to take the chance?
Even if you're not evicted, a lack of insurance can prevent you from renting your next apartment. Many landlords will ask to see proof of tenants insurance before they rent to you.
Your Stuff Adds Up Quickly
A common reason for renters not to purchase insurance is the feeling that they simply don't have a lot to insure. But if you walk around your house and add up what you do have—and if you picture yourself trying to replace it all—you may find that it adds up to more than you think. Your electronics alone can be worth a lot of money. Could you afford to replace your cell phone, laptop, and tablet immediately if they were stolen or damaged?
Then on top of that, you have all of your clothing, books, furniture, and any appliances that belong to you. Your landlord's insurance policy won't cover any of your belongings in the event of a break-in or an accident. You need your own insurance policy for that.
You Can Be Held Liable For Injuries
Just because you don't own the property doesn't mean that you can't be held liable for any injuries on the property. You're the one living there, so you can be held responsible for an accident or injury. If a plumber comes to the house to fix a pipe and trips over your dog, he or she could sue you for the resulting injury. If you leave a candle burning at night that starts a fire, your landlord could sue you for the damage to the property, and other tenants could sue for the damage to their property if their units are affected.
Tenants insurance covers liability issues, so instead of having to pay out of pocket for the plumber's broken ankle or the fire damage, your insurance policy will pay for the damage. That could save you a lot of money.
Things Outside Your Home Are Covered Too
Many people don't realize that tenants insurance covers things outside the home as well as inside the home. For example, if you leave your laptop in your car, and it gets stolen, your car insurance may not cover it. However, your tenants insurance probably will, because it's considered property that's included in the contents insurance.
Is your apartment to small for all of your stuff? Tenants insurance may also cover items that you store off-site in a storage unit as well. If your unit floods, breaks down, or is burglarized, your tenants insurance will pay to replace it.
Take the time to talk to a few different insurance brokers to find a tenants insurance policy that works for you. You may be able to save money by going with the same insurance company that insures your car and bundling the two policies. Not only is getting tenants insurance the responsible thing to do, it could save you a lot of money somewhere down the road. Click here for more info about this and other available insurance covers.