Most Common Months To Rent Are Between May To September

Merit Tenant Insurance

Canada is predominantly a nation of homeowners. The majority of Canadians own their home, and it is estimated only 32% of the population is renting. However, Toronto has one of the lowest rates of homeownership per city in Canada. The unprecedented real estate market has forced many millennials and other generations to turn to rental properties. As the name would imply, home insurance isn’t just for homeowners. It is important for savvy renters as well. In this blog, we explain why it is important to protect your assets even if you don’t own your current home.

What is tenant insurance?

We often associate home insurance with protection against physical damage to your house, such as burst pipes or a collapsed roof. If you are a renter, it can be easy to overlook insurance thinking it only applies to the physical structure and therefore the responsibility of your landlord. However, in the event of a claim, their insurance won’t cover your personal belongings such as furniture, electronics, or jewelry.

What does it cover?

Tenant insurance, commonly referred to as renters’ insurance, is tailored towards protecting your personal property within the home, liability and additional living expenses if you have to make a claim.

Liability

Personal Liability is a coverage designed to protect you legally if you accidentally injure someone, or they are hurt on your property. In most circumstances, the landlord’s insurance will not protect you if someone is injured at your rental home. Personal Liability is a part of renters insurance that is designed to protect you legally if there is an accident resulting in injury while on your property.

Personal Belongings

Items in your home can quickly add up. Think of the cumulative cost of your wardrobe, furniture, electronics, and jewelry to name a few! Contents coverage can be purchased to cover a specific dollar amount to cover the cost of either repairing or replacing items in a claim. This insurance would cover your belongings against common risks such as theft, fire, loss, and much more.

Some items may be subject to limits, so it is important to speak with your Merit broker about which items are not covered. Your broker can help you create a tailored coverage plan for expensive items such as costly fine art or an engagement ring to ensure you are always protected.

Additional Living Expenses

Another added benefit of tenant insurance is additional living expenses. If your home becomes unlivable due to a covered loss, tenant insurance can assist you in the cost of damage to your personal property and offer compensation for additional living expenses until your home is ready to be lived in again.

Is tenant insurance legally required in Ontario?

Although tenant’s insurance is not mandatory, it offers peace of mind for an unexpected uncovered loss. There has also been an increasing trend in landlords asking tenants to obtain renters insurance as a condition on the lease. According to TD’s 2021 Tenant Insurance Survey, 41% of Canadian renters do not have tenant insurance. This leaves individuals open financially and to legal liability. We know you work hard to buy the things in your life, why not protect it with tenants’ insurance? Contact us today and we will build the right coverage for you!