The Top 10 Tips You Need To Know About Renters Insurance
Many renters ask the question – do I need renters insurance? I don’t own that much stuff – so why should I pay the cost of having renters insurance?
Well, the team at myhood.ca has done some research in order to uncover the myths and realities of renters insurance and get to the bottom of the question – do I need renters insurance?
The following are 10 great pieces of information that you NEED to know about renters insurance:
What is Renters Insurance?
Renter (or Tenant) insurance provides protection for your personal property in case of many events including fire, theft, and vandalism. In addition to this, renter's insurance can protect a renter against personal liability if you accidentally hurt someone or damage their property.
Is it necessary to have renters insurance?
NO. Landlords, banks and other institutions do not require that you have renters insurance. It’s simply protection for you and your belongings. So, while it is not required, it is a wise decision to have this insurance. If you add up all your belongings – your computer, iPod, clothes, TV, furniture, sports equipment, etc., you’ll see that the amount of your belongings ads up – likely in the $10,000 to $20,000 range…
I thought only people who rent a house need renters insurance.
NO. Renters insurance is for anyone who rents an apartment, condo or house.
Doesn’t my landlord’s insurance cover me?
NO. While your landlord may have insurance, your belongings are not covered under their insurance. Landlords, who are the property owners, are only responsible for insuring the physical building itself against damage from occurrences such as fire, hail and vandalism, as well as their own person liability. However, their insurance does not cover your belongings, so don’t expect your landlord to owe you payment should anything happen.
My roommate has insurance, so do I still need it?
YES. Although your roommate might have insurance, this only covers his or her personal belongings - not yours, unless you are listed on his/her policy.
Renters Insurance is expensive – I can’t afford it.
FALSE. While renters insurance is certainly an expense, it is not expensive. For a couple hundred dollars or less a year, the average renter can get full coverage for their apartment. In the circumstance where you didn’t have renters insurance and had to replace all your belongings due to a fire or a robbery, a couple of hundred dollars doesn’t look too expensive. The one note however is the deductible. This is the amount you pay for the lost or damaged goods, before the insurance company would begin paying. Typically, the higher the deductible, the cheaper your policy will cost.
Where should I go to buy renters insurance?
A good place to start is kanetix.ca where you can get FREE Renters Insurance Quotes . They’re essentially an online quote comparison service that will compare quotes from approximately 30 different insurance providers. Alternatively, you can use your existing insurance provider, if you have one, for renters insurance. Many times you may be able to get cheaper insurance by “bundling” a few types of insurance together through one provider. However, if you if you go through your existing insurance provider, we suggest also using kantix.ca as it will give you renters insurance quotes compared online in minutes for free which will help keep your existing insurance provider honest.
How does renters insurance work when you need to replace your belongings?
When buying renters insurance you have a choice of two kinds of payouts: actual cash value and replacement cost coverage. Very simply, actual cash value pays only for what your property was worth at the time it was damaged or stolen, whereas replacement cost coverage pays for what it actually costs to replace the items you lost. Typically replacement cost is more expensive, however, it may be worth it, especially if some of your most expensive belongings are electronic items like a laptop, iPod and TV which are worth little to nothing 2 years after they’re bought, but would cost thousands to replace…
What “perils” (i.e. disasters) does renters insurance typically NOT cover?
Renters insurance typically DOES NOT cover floods and earthquakes. If you live in Canada, earthquakes won’t be much of an issue, however fires (which spreads very quickly) and floods (especially if you live in a basement apartment) are two of the most common disasters.
I live in a dorm room – do I need to get renters insurance?
Typically, if you live in a dormitory, your parents' policy may cover you. If you live in an apartment, it probably doesn't. In either case, it’s in your best interest to get your parents to check their policy or with their agent to get the facts.
Well, the team at myhood.ca has done some research in order to uncover the myths and realities of renters insurance and get to the bottom of the question – do I need renters insurance?
The following are 10 great pieces of information that you NEED to know about renters insurance:
What is Renters Insurance?
Renter (or Tenant) insurance provides protection for your personal property in case of many events including fire, theft, and vandalism. In addition to this, renter's insurance can protect a renter against personal liability if you accidentally hurt someone or damage their property.
Is it necessary to have renters insurance?
NO. Landlords, banks and other institutions do not require that you have renters insurance. It’s simply protection for you and your belongings. So, while it is not required, it is a wise decision to have this insurance. If you add up all your belongings – your computer, iPod, clothes, TV, furniture, sports equipment, etc., you’ll see that the amount of your belongings ads up – likely in the $10,000 to $20,000 range…
I thought only people who rent a house need renters insurance.
NO. Renters insurance is for anyone who rents an apartment, condo or house.
Doesn’t my landlord’s insurance cover me?
NO. While your landlord may have insurance, your belongings are not covered under their insurance. Landlords, who are the property owners, are only responsible for insuring the physical building itself against damage from occurrences such as fire, hail and vandalism, as well as their own person liability. However, their insurance does not cover your belongings, so don’t expect your landlord to owe you payment should anything happen.
My roommate has insurance, so do I still need it?
YES. Although your roommate might have insurance, this only covers his or her personal belongings - not yours, unless you are listed on his/her policy.
Renters Insurance is expensive – I can’t afford it.
FALSE. While renters insurance is certainly an expense, it is not expensive. For a couple hundred dollars or less a year, the average renter can get full coverage for their apartment. In the circumstance where you didn’t have renters insurance and had to replace all your belongings due to a fire or a robbery, a couple of hundred dollars doesn’t look too expensive. The one note however is the deductible. This is the amount you pay for the lost or damaged goods, before the insurance company would begin paying. Typically, the higher the deductible, the cheaper your policy will cost.
Where should I go to buy renters insurance?
A good place to start is kanetix.ca where you can get FREE Renters Insurance Quotes . They’re essentially an online quote comparison service that will compare quotes from approximately 30 different insurance providers. Alternatively, you can use your existing insurance provider, if you have one, for renters insurance. Many times you may be able to get cheaper insurance by “bundling” a few types of insurance together through one provider. However, if you if you go through your existing insurance provider, we suggest also using kantix.ca as it will give you renters insurance quotes compared online in minutes for free which will help keep your existing insurance provider honest.
How does renters insurance work when you need to replace your belongings?
When buying renters insurance you have a choice of two kinds of payouts: actual cash value and replacement cost coverage. Very simply, actual cash value pays only for what your property was worth at the time it was damaged or stolen, whereas replacement cost coverage pays for what it actually costs to replace the items you lost. Typically replacement cost is more expensive, however, it may be worth it, especially if some of your most expensive belongings are electronic items like a laptop, iPod and TV which are worth little to nothing 2 years after they’re bought, but would cost thousands to replace…
What “perils” (i.e. disasters) does renters insurance typically NOT cover?
Renters insurance typically DOES NOT cover floods and earthquakes. If you live in Canada, earthquakes won’t be much of an issue, however fires (which spreads very quickly) and floods (especially if you live in a basement apartment) are two of the most common disasters.
I live in a dorm room – do I need to get renters insurance?
Typically, if you live in a dormitory, your parents' policy may cover you. If you live in an apartment, it probably doesn't. In either case, it’s in your best interest to get your parents to check their policy or with their agent to get the facts.
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