Buying a house in 2023 can be challenging so living in a rental insurance can be manageable but comes with additional cost and various myths.
Rental Insurance, also known as tenant insurance, helps you in preventing your lifestyle by offering damage coverage for the personal belongings of the tenant. It also offers liability protection in case of accident or any damages that may occur within the rented premises.
In a recent survey in Canada, half of the renter do not feel to pay for tenant insurance coverage. Though, Rental Insurance offer multiple benefit, but it comes with a lot of misconception and specially if are you taking insurance for the first time.
6 most common myths about Rental Insurance or Tenant Insurance.
1. “My landlord’s insurance covers my belongings”
A huge number of first-time tenant have this common misconception where they think that the landlord’s insurance covers their belongings. However, the landlord’s insurance is responsible for covering the building structure only not the tenants. Rental Insurance is a significant expensive that can secure your valuable items during fire, water damage, break-ins or other covered events.
2. “Rental insurance is too expensive”
This is the biggest myth as being a immigrant living in Canada, I pay $33 per month as I have added additional coverage for my rental unit. While signing up for rental/tenant insurance, you will get option to choose between regular or premium insurance that may vary depending on multiple factors such as coverage limits, locations, deductible and optional add-ons.
Many tenants find this price affordable considering the fact that these small investments can offer them financial protection. Investing money on Rental Insurance is totally worth it but I highly recommend you look at the market price and compare which suits your needs and can offer you the best price.
3. “I don’t own valuable items, so I don’t need rental insurance”
Rental Insurance offers a wide range of financial protection to personal items. The moment we talk about rental insurance, the first think pops up in our mind is the jewelry or electronics items such as Laptops, Tablets or other gadgets. But it will not only protect valuable items but also everyday essentials like furniture, clothing, and appliances.
For example, you own a couch, fridge and television worth $5,000. In case of theft, rental insurance will protect these items and to be very honest $5,000 is huge if compared with $25 – $35 per month on rental insurance.
4. “Rental insurance only covers my belongings inside the rental unit”
Rental Insurance usually provides coverage to your personal belonging inside your rental units as well as when you are not available at apartment/house. For example, if your laptop is stolen while travelling to your workplace or your e-bike is damaged while parked outside then the rental insurance can offer protection to such situations.
To check whether your rental insurance offer protection outside your unit, kindly refer to the the terms and condition of the insurance policy or else confirm it before making your payment.
5. “My roommate’s rental insurance covers my belongings too”
Each Individual have their separate tenant insurance for their personal belongings while renting any house or apartment. In case, your roommate’s have an insurance coverage which say “Roommate Insurance” then it means that only personal belonging of your roommate is protected.
So, it is crucial to have your rental insurance if you are planning to share your place with a stranger or even your friend.
6. “Rental insurance only covers accidents caused by me”
Rental Insurance not only covers accidents cause by you but also accidents caused by your family members or even pets. In case, your pet cause damage or if a member of family accidentally causes injury to anyone, Rental Liability coverage can assist you with financial support and protection.
Final Words
Rental Insurance can provides protection and coverage for personal belongings for an individual renting a property. Contrary to common myths, rental insurance is cheap and affordable, covers your belongings even if you are outside of your unit. Additionally, it is important to have rental insurance of each individual if you choose the share the unit.
However, it is crucial to consult with an insurance advisor or read insurance policy to understand the specific limitations, coverage, and terms and condition of your insurance agreement. Clearing your doubt about any terms of insurance policy can help you in making informed decision and offers you a protection coverage to you and your personal belongings.
