The average cost of tenant insurance depends on where you live because each place – each province will have differing economic status, tax, prices, and more. Familiarize yourself with the average cost of tenant insurance in your province through this guide.
That’s not all we’ll be going over either. We’ll be going over tenant insurance, why you should get it, and where you can get it. Get ready for a comprehensive read on tenant insurance in Canada.
Ready to make sure you’re not paying too much? Let’s get started.
What is Tenant insurance?
Tenant insurance, otherwise known as renters insurance, helps cover damages when you’re renting property. Tenant insurance exists to avoid paying for these damages and necessary repairs out-of-pocket.
Tenant insurance can cover not only the property itself but also the belongings within the property. You might have expensive jewellery or gadgets. If they were to be stolen, you’d be reimbursed depending on your tenant insurance policy. Cool, right?
What’s the average cost of tenant insurance per province in Canada?
Now that you get the gist of tenant insurance, you should familiarize yourself with the typical cost of tenant insurance in Canada. As mentioned previously, each place will have different costs because the demographic and economy is different. This list will include each province and the average cost of tenant insurance in that province.
Alberta – $20 to $30 per month
British Columbia – $25 to $35 per month
Manitoba – as little as $15 per month
New Brunswick – $15 to $25 per month
Newfoundland and Labrador – $15 to $25 per month
Nova Scotia – $15 to $25 per month
Ontario – $25 to $30 per month
Prince Edward Island – $15 to $25 per month
Quebec – $15 per month
Saskatchewan – $15 to $25 per month
Why should I get tenant insurance?
Tenant insurance is one of the less common types of insurance you could get, so why should you get it? We understand that it may seem unimportant, so here are 3 reasons you should get tenant insurance.
1. It’s affordable.
Compared to other insurance such as home and life insurance, tenant insurance is affordable. You won’t be paying hundreds of dollars every month. Instead, you’ll be paying a few for the benefits you’re getting should you experience a disastrous event.
2. It promotes financial stability by covering losses to personal property.
Personal property includes jewelry, gadgets such as computers, and the like. These are generally expensive so to avoid paying for replacements out-of-pocket, make sure to get tenant insurance.
From your furniture to electronics and luggage, you won’t have to pay should anything happen to them. That’s the beauty of tenant insurance and the financial stability it promotes.
3. It provides liability coverage.
Finally, tenant insurance includes liability coverage, so it will pay for court judgments and legal expenses should you accidentally injure yourself or someone else. These expenses are bound to be high so, making sure to purchase good insurance that will cover them is a must.
Is tenant insurance mandatory in Canada?
This is a question for your landlord to answer. While tenant insurance is not a law, your landlord might require you to attain tenant insurance if you plan to live in the property you’ve rented.
For this one, we highly suggest speaking to your landlord. Although tenant insurance is a great thing to have and it comes highly recommended, you might not be able to afford it so make sure to speak to your landlord.
Top 3 Insurance Companies that Offer Good Tenant Insurance in Canada
Now that you’ve been introduced to tenant insurance, it’s time to choose good insurance companies with quality tenant insurance. Here are the top 5 insurance companies in Canada you should check out.
1. Square One Insurance
Square One Insurance is a Canadian-based company that offers insurance to those in Manitoba, Ontario, British Columbia, and more. Square One is also known for its affordable prices and the niche customizable plans it provides. You can choose to customize your plans to cater to what you need.
Square One Insurance offers great tenant insurance for as low as $12 per month. It’s a complete insurance policy that includes property damage, furnished properties, civil liability, and more.
Square One tenant insurance does not include leasehold improvements and additional liability or property insurance but, what the policy does include is complete that it takes the first spot as the best insurance company to get tenant insurance in Canada.
2. Intact Insurance
Intact Insurance also offers great coverage, from medical expenses to furnished properties to water damage. Unfortunately, unlike Square One, it does not include additional living expenses, but it is still a comprehensive insurance policy.
Intact Insurance also includes high-quality customer service. Intact Insurance is known for its great customer service that caters to the needs of its customers. If interested, get a quote by visiting the Intact Insurance website.
The downside is that it only serves Ontario, so unless you’re from Ontario, you won’t be able to benefit from Intact Insurance’s tenant insurance plan.
3. Apollo Insurance
If you need your tenant insurance quick – and by quick, we mean as quick as 5 minutes – Apollo Insurance is the way to go. You’ll receive insurance for furnished properties, medical expenses, property damage, and more.
It’s very simple to sign up for their tenant insurance. You can visit the Apollo Insurance website, get a quote, and create a customizable plan catered to your needs.
What does tenant insurance not cover?
While tenant insurance is comprehensive and covers a great deal, there are still exclusions. We’ll list them for you so you can refer to them easily when needed.
1. Expensive and high-value items
While tenant insurance does cover certain expensive items within your home, there are some that you have to specify on your policy, such as bikes. Make sure to coordinate with your insurance company to insure everything within your home. You don’t want to leave anything out, especially not anything of high value.
2. Business Use
Tenants who use properties as a place of business must pay for the ‘business use’ add-on that most insurance companies provide. It is not included within the standard tenant insurance policy. Like the high-value items, you have to specify that you’d like to avail of this add-on.
Don’t be disheartened though. Your insurance company and customer service will help you with everything you need and answer every question you may have.
3. Unoccupied property
If the property you’ve insured has been unoccupied for a long time – for most companies, this would mean 30 days – that property is no longer covered by tenant insurance. Be mindful of this as most people forget and never check on the insurance they’ve bought.
When a property has been unoccupied for a long period, it’s time to renew the insurance policy by contacting your insurance company.
4. Wear and tear
While tenant insurance does reimburse you for damage on personal belongings, they only do so if another person did the damage – i.e. that person tried to steal from your home. It will not cover things such as your old laptop no longer working or your stove being too old. Wear and tear is not something tenant insurance covers.
5. Taking your possessions out of your home.
Unless you have add-ons such as ‘personal possessions’ or ‘all risks’, tenant insurance will no longer cover possessions you take outside your home. Say you bring your laptop out to a coffee shop to work. Unfortunately, someone knocks your laptop off the table and gets damaged. If you don’t have these add-ons, you’ll be repairing that laptop with money out-of-pocket.
Being aware of what tenant insurance does and does not cover is important as you decide whether you really want tenant insurance for yourself, your personal property, and your home.
The Takeaway
When you’re renting a place, don’t forget to include getting tenant insurance in your to-do list. Tenant insurance will help you avoid paying for damages, repairs, and certain expenses out-of-pocket.
Money is a precious commodity. Making sure we don’t spend too much nor lose too much is something we all have to deal with but have a difficult time with. Insurance helps protect you from financial losses and aids you in achieving financial stability. You no longer have to constantly worry about losing your entire savings because of one mistake. Insurance has got you covered. You just have to find the right one.
