All About Tenant Insurance in Toronto
Renters are not required by law to have insurance coverage.
However, renters can greatly benefit by having sufficient coverage. Tenant insurance will protect their personal property, and it will cover living expenses if their home is unlivable. Tenant insurance offers liability insurance that will protect renters from responsibility for major expenses.
Some lease agreements require tenants to have renters insurance with some landlords purchasing renters insurance for their tenants. You should make sure you have your own tenant insurance coverage as the landlord’s policy may not be designed to protect you and your belongings.
Save On More Than Just Rent In Diverse Toronto
Toronto is home to over three million residents with the city offering job opportunities, a wonderful standard of living, and the chance to enjoy culture and the arts. The livability of Toronto has resulted in many people moving to the city with it causing an increased cost of living with insurance being an expense that Toronto residents are interested in saving money on.
Toronto is currently going through a housing crisis with the city’s desirability resulting in high property values and rental prices. Forty-seven percent of residents are tenants with the number rising. Nearly half of renters have to budget over thirty percent of their income to cover rent.
High rent prices mean renters need to save money wherever they can. One way to do this is by comparing different companies’ tenant insurance rates with MyChoice.
What Is the Difference Between Home Insurance and Tenant Insurance?
Your landlord should have their own insurance policy that will protect the building which will not protect you or your property, this is home insurance for the landlord. You should not make the common mistake of thinking your landlord’s insurance will protect you, which is why you need tenant insurance.
How Much Does Tenant Insurance Cost In Toronto?
It can be difficult to determine the average cost of tenant insurance due to it being affected by a number of factors. Tenant insurance rates can be affected by:
- Location
- Level Of Coverage
- Risks Covered
- Type Of Building (Home, Condo, Apartment)
- Your Claims History
Things Your Tenant Insurance Should Cover
Tenant insurance should cover three main categories. These three categories of coverage will allow you to make sure that your belongings are safe, your finances aren’t impacted by damage to your apartment, and it will protect you from costly bills if your apartment is unlivable.
Belongings
Tenant insurance should cover your personal property. This should include such things as your clothes, furniture, electronics, and other things of value. Personal property coverage will allow you to replace your belongings if they are damaged.
Liability
Liability coverage will protect you from being at fault for damage to the apartment, other people, and damage to other people’s apartment. Liability coverage would protect you if your dog was to bite someone or if you happen to cause a flood by leaving a tap running.
Liability coverage is extremely desirable as it is possible to be responsible for major bills that can affect your financial future.
Living Expenses
Renters insurance should cover your living expenses if your apartment in unlivable like the cost of a hotel, commuting to work, and other living expenses until your apartment is fixed. It may also cover the cost of finding a replacement apartment if your current residence will not be ready for a long period of time.
Toronto’s high cost of living makes covering living expenses even more important and one way of helping is to ensure you have renters insurance.
Choosing Between Named Peril and All Peril To Get The Best Insurance Coverage
What risks your insurance covers is an important factor in making sure that your renters insurance will actually cover you. Two types of insurance are “Named Peril” and “All Peril” coverage.
Named Peril
Named peril coverage protects you from all risks that are listed in the policy, but it does not protect you from risks not listed. Generally, named peril insurance policies will generally cover risks including: Fire, burglary, storm damage and water damage.
You should examine your named peril policy to make sure that it offers you the protection you need. The best insurance policy should protect you from common risks such as burglary and water damage.
All Peril
All peril covers all risks that are specifically excluded from the policy such as things like overland flooding or damage from insects. An all peril coverage option may sound like it is more valuable than a named peril option but you should compare the covered risks to make sure that you get the best value out of your insurance.
What Renters Insurance Usually Doesn’t Cover
Renters insurance usually does not cover a variety of risks which include:
- Criminal Or Intentional Acts
- Overland Flooding
- Damage From Riots
- Insect Damage
Your renters insurance will not cover certain types of property. Tenant insurance will not cover expensive items that go over your policy’s limit such as expensive jewelry or fine art.
Choosing Between a Cash Value Plan or Replacement Value Plan
Renters insurance will evaluate the value and compensate your belongings using two different types of plans. A cash value plan will determine the cost of your property while taking into consideration depreciation. For example, a cash value plan will look at the current value of something like a computer and give you money for it.
A replacement value plan will compensate you for “like-new” value of your property. A replacement value plan would give you money to purchase a similar make and model of a computer if it was an iteam that became destroyed.
In general, a replacement value plan will cost more, but it will give you more value in terms of coverage. It will allow you to recover from damage to your property better than a cash value plan. However, a cash value plan will cost less, and it will still give you coverage for the value of your property.
Popular Ways To Try and Save On Tenant Insurance in Toronto
Toronto’s cost of living means that renters are going to want to save money any way they can. A simple way to save money is by bundling your insurance policies. You can generally save money on both your auto and renters insurance if you use the same provider.
Increase Your Deductible
A higher deductible will generally result in lower premiums. Many renters are comfortable with covering some expenses in the event of damage to their belongings. Just make sure that your deductible is at a rate where you will still be able to get value out of your insurance.
Get the Right Level Of Coverage
You should get the right level of coverage for you and your belongings on average, a tenant insurance policy will give you twenty-five thousand dollars of coverage. Therefore you should go through your apartment and make a list of all your belongings, assign a dollar value and then make sure you have an adequate level of coverage.
Ask For Discounts
Insurance providers will give you discounts for a number of situations and conditions. You should inform your insurance provider if you fit into one of these categories to see if you can get a discount. You can get a discount for:
- Being A College Graduate
- Being A Senior Citizen
- Having A No Claims Bonus
- Installing A Security System
Can I Transfer Tenant Insurance?
No, you cannot transfer tenant insurance.
However, your insurance provider can provide you with a replacement policy when you move, however moving is a good time to shop around for new insurance, so you should check to make sure you are getting the most value out of your insurance.
Generally, your insurance will remain active for a month after you move but don’t forget to check with your insurance provider to make sure your old policy is cancelled.
Save Money By Comparing Your Toronto Tenant Insurance With MyChoice
MyChoice is an excellent resource for comparing your renters insurance in Toronto, our site allows you to receive a quote from the best insurance companies and its easy to get a quote quickly once you enter some basic information.
MyChoice is designed for people who are actively searching for tenant insurance and for people who want to switch to a better policy by allowing you to compare quotes from the best providers.