Being a tenant, you must be aware of the benefits of a renter’s insurance in Canada.
Given that you don’t benefit from your landlord’s insurance, you may want to work with an expert, like the pros at Surex, as they can help you find Toronto tenant insurance quotes that meet or exceed your expectations.
However, did you know that your landlord can also benefit from the renter’s insurance policy?
Although there’s no rigid laws in Canada making renter’s insurance mandatory, your landlord can require you to purchase some form of tenant insurance. This is due to the fact that if you get renters insurance landlord property owners can also protect themselves.
In this article, the experts have briefed out how your renter’s insurance policy can benefit your landlord.
What is renter’s insurance and what does it cover?
Tenant insurance, also termed renter’s insurance, are insurance products that secure tenants from many forms of property damage, loss, or liability. When you rent a home, the landlord’s policy covers the structure but not your belongings.
In case of a catastrophe or accident, the landlord’s policy would only compensate for the structural damage of the building. However, as a tenant, you need to secure your interests as well. This explains why you should get a renter’s insurance policy to ensure your financial security to cope with a natural disaster or emergency.
A significant number of tenants are yet to realize the value of a renter’s insurance. Sometimes, they even undermine the value of their possessions. Considering the multiplicity of perils, getting a renter’s insurance policy would be wise.
Although the provisions for different tenant insurance products vary, an average Canadian renter’s insurance would offer you the following benefits.
- Compensation for the damage or loss of your personal belongings in the rented building
- Certain coverages for property damage or loss outside the property
- The expenses for accidental damage to the accommodation and the building’s surroundings
- Liability coverage to financially back you, in case you damaged other tenant’s property or injured them
- Financial backup for living expenses, in case a natural disaster like earthquake, flood, or fire renders the accommodation inhabitable
Landlord renters insurance benefits 101
Here is why landlords would require you to purchase a renter’s insurance policy:
1. Additional security
Responsible landlords would want to ensure the best living conditions for their tenants. However, things might not be in their hands all the time. Some landlords might want their tenants to have renter’s insurance in place when they sign a new lease agreement.
This ensures that the landlord would not shoulder the responsibility to make the place habitable in case of a disaster. Instead, the insurer would be covering up the losses and making necessary arrangements.
In case you don’t have renter’s insurance, the landlord would lack mental peace, which is quite natural. However, when you have one, both the parties would remain assured that the insurer would cover the damage if required.
2. Minimize out-of-pocket expenses
In general, landlords remain protected with their own insurance policies that cover the rental properties following disasters. However, some of these policies involve a high deductible. Therefore, when your landlord files a claim, they need to shell out a higher premium.
With a renter’s insurance policy, they can bridge this coverage gap. Therefore, tenant insurance would supplement landlords with an additional source of compensation.
3. Maintaining good relations
At times, situations might aggravate to an extent, where a tenant might accuse the landlord of failing to secure their belongings during a disaster. A renter’s insurance policy would come to the rescue of the landlord. This would also help both parties maintain positive relations.
Also, if one of the tenant’s visitors or guests sustains injuries following an accident on the premises, they might file a lawsuit. A renter’s insurance would come in handy in settling court cases and compensating the medical bills.
4. Pet liability coverage
Many landlords do not want to keep tenants with pets. Keeping pets within the premises makes the landlord liable for the damages or injuries that they cause. Also, having pets in a rental might lead to property damage.
A renter’s insurance policy can include pet liability coverage. Therefore, if the tenant’s pet injures someone, the landlord would have the peace of mind that the insurer will cover the financial expenses for medical bills.
5. Relocation expenses
In case of a natural disaster or fire, your property might become uninhabitable. Following this property damage, a landlord might feel obliged to cover a part of the relocation expenses of their tenants. Some tenant policies provide financial assistance to cover temporary living expenses.
Therefore, when a tenant needs to relocate, having a renter’s insurance would help cover this cost. Also, the landlord can rest assured that he would not have to make any out-of-pocket expenses.
Choosing the right renter’s insurance policy
With too many insurers around, it might be challenging to customize the right renter’s insurance policy for yourself. This is why tenants consult experts, who help them narrow down their options.
- When you choose a tenant insurance policy, make sure that the product covers the entire value of your property at the current market price.
- The policy should have a provision for third-party liability coverage. This ensures that the insurers will compensate for the legal and medical expenses if any of your guests sustain an injury on your premises.
- Most of these policies come with the provision for additional expenses to cover your living costs. Make sure that your scheme has got this benefit too.
- Pet owners should choose a renter’s insurance policy with pet liability coverage. In case you don’t have a pet, you can save a part of your premium by opting out of this benefit.
Do you have questions about the benefits of renters insurance for landlord property owners?
Although not mandatory by law, renter’s insurance can significantly smoothen the journey for both the tenant and the landlord. As a responsible tenant, you might be thinking of getting a policy customized for yourself, right?
Consulting the experts, you can save the unnecessary expenses on premiums. Also, the professionals would recommend you the most suitable policies, depending on your specific needs. It makes sense to reach out to these experts and get a renter’s insurance coverage for yourself.
Read also: Understanding Commercial General Liability Insurance