Why do I need to purchase tenant insurance?
Tenant insurance is not compulsory under Ontario’s legislation. Nevertheless, most landlords will require you to purchase tenant insurance before you can sign the lease agreement.
When a tenant rents an unit, he or she is responsible for the safe use of this space. The housing shell or the condominium of the building is certainly the responsibility of the landlord or the property management company. However, the space within the unit and the tenant’s personal belongings needs a lot of responsibility. Tenant insurance will provide proper protection. It covers costs such as repairing or replacing items in the event of damage or theft. It also provides additional living expenses should the unit becomes unlivable due to a covered loss. Liability insurance can protect you and anyone in your family.
Nowadays, many rental agencies or landlords in Ontario will specify in the lease agreement that tenants must purchase rental insurance at their own expense, or tenants must first hold tenant insurance before consideration.
For new immigrants holding study permits and work permits, what is the necessity of tenant insurance?
Home insurance does not only apply to homeowners. This is also a wise move for renters to protect their units. Tenant insurance ensures reasonable compensation in the event of disasters such as fire, smoke, explosion, burst of water pipes, and theft. It also includes claims and litigation caused by third parties. In addition, if tenants want to buy a house in Canada in the future, if they have a good tenant insurance record before buying the house for the first time, it will help save costs in the future. Generally, the premium for tenant insurance is only about 20 to 40 Canadian dollars per month, which is affordable for new immigrants who have just arrived.
What protection does tenant insurance include?
Mainly, the following are the common insurance coverage included in Ontario Tenant Insurance:
- Protect your personal property and your family’s personal property against financial loss.
- After the unfortunate loss, tenant insurance can help you cope with other needs arising from this and make up for the loss of additional fees such as additional living expenses.
- If a lawsuit occurs due to an accident, tenant insurance can help protect you and your family from property damage or bodily injury to others.
Feel free to contact us at any time, our tenant insurance experts will be happy to provide you with suggestions and quotations.