The Importance of Renters Insurance for Apartments

October 9, 2023

A person in an apartment with tenant insurance

When renting an apartment, it’s important to consider what you would do in the event of a total property loss. You may or may not be responsible for damage to the unit, but replacing all of your personal belongings after a devastating fire or flood is costly and puts your financial security at risk. That’s why it’s essential to have a comprehensive renters’ insurance policy in place to cover you in case an accident or disaster damages or destroys your property.

What is Renters’ or Tenant Insurance?

Renters’ or tenant insurance covers your personal belongings in your apartment if they’re damaged by fire, water, or other common perils covered by standard home insurance policies. The typical policy usually covers at least $30,000 of damage, with options to increase this amount if the value of your belongings exceeds this. Pricier items such as fine jewellery or musical instruments may require an additional retainer to ensure they’re fully covered.

What is Covered by Renters’ Insurance?

Renters’ insurance covers the value of your belongings in case they’re damaged or destroyed by fire, water, or other events outside your control. Without insurance, you’ll have to replace everything you own out of pocket, costing you thousands of dollars.

Renters’ insurance also covers you if someone is injured in your home or if you damage someone else’s property. For example, if a guest sued you after being bitten by your dog, your insurance would cover the cost of the lawsuit.

Finally, renters’ insurance covers you if you need temporary living arrangements. If you can’t live in your unit during repairs, renters’ insurance will cover the cost of a hotel room, food, and other expenses incurred as a result of your displacement.

Is Renters’ Insurance Mandatory?

While renters’ insurance isn’t mandatory by law in Ontario, many landlords and property management companies will require it as a condition of your lease because it protects both of you in the event of a loss.

Summit Properties requires all tenants to purchase tenant’s insurance with $2 million liability coverage. Tenants must provide a copy of their proof of coverage once the lease agreement has been signed, but prior to receiving keys.

View our residential FAQs for more details.

Benefits of Renters’ Insurance

Peace of Mind

The benefits of renters’ insurance are numerous, but perhaps the most important one is peace of mind. You’ll never have to worry about being on the hook for large, unexpected expenses if your personal property is damaged or destroyed in an accident or natural disaster. You’ll also never need to worry about temporary living arrangements if you can’t live in your home during repairs.

Renters’ Insurance Can Cover Everything

Contrary to popular belief, renters’ insurance doesn’t just cover your big-ticket, expensive items. It covers everything, down to toothbrushes and cutlery! The cost of replacing everything you own is higher than you think, especially considering all the small, relatively inexpensive items that quickly add up to a much larger cost.

Tenant Insurance Is Cost-Effective

The cost of renters’ insurance may be less than you might think. With basic coverage, tenant policies can cost as little as $15 per month. If you already have car insurance, you may be eligible for a multi-policy discount when you bundle tenant insurance with your existing car policy, ultimately saving you money on both policies.

The benefits of renters’ insurance far outweigh the cost, and protecting yourself and your property is a prudent decision you’ll never regret.

Discover Your Dream Apartment in London with Summit Properties

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