Meet Gabriel, one of Covera’s licensed brokers.
Every day, Gabriel helps Covera’s customers understand their need and find insurance policies that fit their budget. It’s spring time and that means that a lot of customers are wondering about tenant insurance.
Q: “Gabriel, what is the recurrent question that you receive concerning tenant insurance?”
A: “I definitely receive a lot of questions from people who are confused about what’s covered and what’s not. Most people believe that the main purpose of tenant insurance is just to protect your stuff. They are convinced that since they don’t necessarily own a lot of expensive belongings they don’t need insurance.
“The goods aren’t worth the investment. Why should I spend this money at all?”
The reality is that while tenant insurance protects your belongings, the real benefit is the protection you get from civil liability (i.e. Getting sued).
As a renter, you could be held responsible for a cooking fire going wild, water leaking into your neighbour’s bedroom, someone slipping on a banana peel at your birthday party. These are all situations that could get you sued for a lot of money.”
Q: “What are the odds? What is the real risk here?”
A: “Well, it depends on who you ask. Insurance can’t protect you against the acts of God, intentional acts or really bad negligence. But leaks, fires and accidents are not uncommon in Canada.
There’s no need to freak out, but it is good to understand what your exposure is if you make the decision not to be insured.
Q: “Then, what are the advantages of having a renter insurance?”
“With the most basic coverage, your civil responsibility would cover up to $1,000,000 worth of damages.
That is enough to protect you from compromising your financial future or going bankrupt because of an accident. Of course, your belongings would be protected against fire, theft and occasional clumsiness as well.
An insurance policy typically offers 24/7 access to support if something bad happens — backup from a real person when you need to deal with a major problem. This can make all the difference in getting back on track if your life gets turned upside down.”
Q: “Any last second tips or advice?”
A: “Of course my first reaction is to say “Buy insurance!”. But if you decide not to, there are plenty of free or low-cost ways to protect yourself. Most are just common sense: check on your appliances and your pipes from time-to-time (especially when moving into a new place), have properly functioning smoke detectors and have a fire extinguisher that you know how to use, have someone watch your place if you’re out of town for a few days.
In terms of insurance tips:
- The most of basic tenant insurance policy would cost you around $20 per month and could save you a lot a pain.
- If you have multiple room mates, you can get a personal tenant insurance policy that would protect you if anything were to happen.
- Monthly payments are more expensive that paying in one shot. Companies tend to charge you interests. If you can afford to pay upfront you will most likely save some cash.”
Whether you choose to live your life dangerously or you always pick the safest path it is worth looking into what your tenant insurance options are. Just be careful when you walk around banana peels.
Version en français disponible ici: https://medium.com/@covera/lassurance-maison-en-tant-que-locataire-est-ce-que-%C3%A7a-vaut-la-peine-cf450d48f4cd
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