New immigrants, international students, temporary foreign workers—no matter what kind of newcomer you are to Canada, you normally need to rent a place you can call home, at least at the beginning. It can be a house, a unit of a condo, a student house, an apartment, or the basement of a house.
Home insurance & tenant insurance
But before you move in, your landlord may ask you to get tenant insurance. You might say, “Tenants also need insurance? I thought the landlord already had home insurance.” Yes that’s true, but the landlord’s home insurance only protects his house and property and has nothing to do with you. If your own belongings are damaged or lost, your landlord’s home insurance won’t cover it. Also, if you cause an injury to someone else or damage other people’s valuables, you will assume the liability and pay it from your own pocket.
Similarly, if you are sued for property damage caused by you, you have to pay the amount that the court asks for. Therefore, in order to reduce your liability and save future hassle, most landlords require tenants to buy tenant insurance with at least $1 million coverage. The insurance should include claims for liability for damage or loss of your personal assets, and shared liability of public facilities in the building such as swimming pool, lobby, theatre, recreation room, etc.
Once you get tenant insurance, many of your assets are protected, such as furniture, electrical appliances, electronics, clothing, jewelry, and other valuables. If they are damaged or lost, the insurance company can compensate you for their value. Tenant insurance also has a unique benefit: If any damage is caused by your negligence, such as the bathroom leaking upstairs affecting the wall or floor downstairs, any repairs will be covered by the insurance policy.
What tenant insurance covers
Tenant insurance also covers fire, theft, break-ins, burglary, vandalism, personal liability, water damage, liability against any legal action resulting from other tenants (i.e. an overflowing bathtub which causes water damage/loss to the occupant(s) below), etc. You can also extend the insurance to cover sewer backup,
It should be noted, however, that even if you want to buy insurance you may not necessarily get it, because the insurance company may require you to meet certain criteria. Insurance is generally based on single family occupancy. In addition, the place you rent should be legitimate. Also, your insurance history must be generally clear, with no claim record in the past five years.
If you plan on buying a house in the future, you should buy tenant insurance as early as possible. Your tenant insurance will give you a discount on future home insurance. Tip: If you buy tenant insurance and auto insurance at the same insurance company, you are entitled to a discount！
If you’d like to know more about tenant insurance, CIS Insurance Brokers can help you. They have dozens of professional brokers who can speak English, Mandarin, Cantonese, and Korean. They have been trusted for over 30 years for meeting their clients’ insurance needs while providing exceptional client experiences.
CIS Insurance Brokers
505 Hwy 7, Suite 328
Thornhill, ON L3T 7T1
call 647-424-1558 for best quote & solution