Insurance

Why should I get Insurance? Download brochure on tenant's insurance

In the event of theft, or damages to your belongings; or if you throw a party and someone is injured, insurance will cover your losses, and/or liability. Insurance companies can offer you an insurance package called a "Tenant's Package". A Tenant Package will include content insurance and liability insurance. Content insurance covers all your personal belongings in the case of a fire or theft. Liability Insurance covers damage that is a result of your actions, either to the apartment (like water damage), or if someone is hurt while visiting you (like during a party).

Link to the Insurance Bureau of Canada on: Types of Tenants' Insurance you can buy and what they cover.

Depending on where you rent, your landlord may require you to have Apartment Insurance as a condition of your lease. Even if your landlord doesn't require insurance, it may sway his/her decision in your favor, if you can provide proof of insurance up front. And there are always advantages to being covered in the event of mishap.

What does the Insurance Company need to know?

The insurance company may ask you the following questions:

• Where is your apartment located?
• In what type of building do you live?
• How many units are in your building?
• What type of heat is used in your apartment?
• When was the building built?
• Of what type of material is the building made? Wood? Brick?
• Is the apartment fire hall or fire hydrant protected?
• How many bedrooms are there in your apartment?
• Do you have roommates?
• Is your roommate male or female?
• Is s/he your girlfriend or boyfriend?
• Have you had insurance before?
• How much do you want to be covered? (How much are your belongings - from clothes to furniture - worth)?

What Does Insurance Cost?

A basic insurance package that covers $20,000 of contents will cost between $125-$200 a year. There are many insurance companies to choose from and each one will offer you a different price - so shop around!

• The cost will also depend on your answers to the above questions. The insurance company will want to assess what the likelihood is that you will have to make a claim. For example:
• How much risk are they willing to assume, to cover your belongings?
• What are the chances of theft in your neighborhood?
• How much damage is likely to be caused in the event of a fire? By water damage?

Some insurance companies won't insure flats (a converted house) because they are too risky. The riskier the investment - the higher the insurance.

How do I get Insurance?

Ask your parents if you are covered under their insurance plan, and what the exact details may include. For example, it may cover content, but not liability. Shop around! There are many insurance companies listed in the yellow pages of the phone book. You might also ask your landlord if there is a particular company that other tenants in the building use. Once you have picked out your apartment, call different insurance companies and compare their rates. If you have not yet signed a lease, it might be a good idea to assess your insurance costs with a company before you sign the lease.

Fill out an application and the insurance company will assess your insurance rate. Settle on a payment schedule. Usually, this is a one time payment, by cheque, that will cover you for the whole year. Monthly schedules are generally for larger insurance packages (i.e. if you were to insure an entire house).

Here are a few tips!

1. Talk to the insurance companies! They want to sell you their insurance packages so they'll be eager to answer your questions.
2. When you're looking for an apartment, keep in mind the standards that insurance companies might have. Do you want to live in an apartment that Insurance companies see as high risk?
3. If you have other insurance packages (like automobile insurance) or if you're a non-smoker than, you may qualify for a discount. Ask about it!
4. And finally each roommate should have their own insurance package! If you share a package and one of your roommates is sued, you will be included in that suit as well!
   

 

This page last modified Thursday, 23-Feb-2012 10:59:45 AST