What Does Tenant Insurance Cover in Ontario?
Despite popular belief, your landlord’s home insurance policy won’t protect you as the tenant or anyone else who suffers damages or injuries while on the rental property. Tenant insurance, on the other hand, can compensate you for losses, legal fees, and more.
Here will discuss the types of losses typically covered by tenant insurance in Ontario, such as damage to your personal belongings, liability claims, and the cost of temporary accommodation. By the end, you’ll have a clear idea of exactly whether or not you need tenant insurance. Let’s get started!
The Main Elements of Tenant Insurance
A standard tenant policy consists of personal liability insurance, contents/personal belonging coverage, and coverage of additional living expenses. Let’s take a look at these in more detail.
Liability Insurance for Tenants in Ontario
Personal liability coverage will protect you against legal/material/medical expenses if you unintentionally cause property damage or bodily injury to someone else while they’re on your rental property. For example, if someone visiting you falls and breaks their leg, they might decide to take legal action against you.
However, your tenant insurance will safeguard you from this liability. Likewise, if you live in an apartment building and accidentally cause fire or water damage to a neighbor’s apartment, your policy will cover their repair costs.
Temporary Accommodation Insurance Ontario
If your place gets damaged to such an extent that you must leave it permanently or until it’s repaired, this component of tenant insurance will have you covered. It compensates for the additional living expenses of your insurer up until the amount determined by the policy.
For instance, if a fire has caused major structural damage in your building, the policy will cover the cost of your hotel stay. You might also be reimbursed for additional food and gas expenses. If you can’t return to your rental home, the policy will also cover the costs of finding a new permanent rental.
Personal Belongings Insurance
This component of a tenant insurance policy protects the contents of the rental property. It will compensate you for any losses you suffer due to theft and vandalism.
For example, if you return from your vacation and find that your rental property has been burglarized and numerous items of yours are stolen, you can rely on your tenant insurance policy to pay for their replacement.
Replacement vs. Repair Coverage
Most tenant insurance policies in Ontario offer two options in case of damaged personal belongings and damaged property of others. You (or the other damaged party) will either get compensated for the repair costs or the insurer will pay for the replacement expenses.
Typically, insurers pay whichever amount is lower. This means if the damaged items cost less to replace (usually applies for small, low-value items) than to repair, you’ll get the replacement costs.
By contrast, if the damaged item is higher in value, and the repair costs don’t exceed the item’s value, your insurer might offer to pay for the repairs instead. Check the replacement/repair coverage rules attached to your insurer’s policies before purchasing a tenant insurance policy.
Ontario Tenants Insurance Limitations
While tenant insurance offers some significant benefits, there are also some limitations. Here is a list of damages/losses generally not covered by tenant insurance.
- Property/general damages caused by some natural disasters, like earthquakes, tsunamis, or floods
- Property/general damages caused by rodents like squirrels, rats, etc.
- Property/general damages caused by chemical contamination
- Property/general damages caused by business-related activities you did on the rental property without your insurer’s knowledge
- Damage/loss caused to a roommate or anyone else living there without your insurer’s knowledge
- Lost or injured animals due to vehicle impact, theft, or unknown reasons
- Damages/losses over a limit determined by a specific policy – these apply to money, jewelry, data (unrelated to known business activities), business-related tools, books, software, computer software, and watercraft.
The limitations might also depend on the price you’re willing to pay for the policy and the monthly premium. You can determine these when purchasing your policy but it can be a little confusing reading the legal terms. This is why it’s often a great idea to find an insurance broker who will ensure you get the perfect policy for your needs and budget.
Who Does Tenant Insurance Protect?
Every tenant insurance policy has one person named as the main insured. However, as a tenant in Ontario, you can have other insured on your rental property.
For example, your tenant insurance policy can protect any person in your care under the age of 21, immediate relatives living on the rental property, or anyone else you want to add as additional insured persons.
You can even have protection for your student child who is still dependent on you while temporarily living at another location. Make sure you let your insurer know to whom you want your policy to extend, as this might affect your how much you pay and the claim process.
Final Thoughts
Tenant insurance can come in handy if you need to repair or replace your personal belongings that were stolen or damaged while on the rental property.
It also has a personal liability feature, not to mention covering any other additional expenses, like legal fees and care expenses of those injured on the property, costs of temporary accommodations, or rent at any other place if your rental space gets damaged.
There is no doubt that tenant insurance is important to save you from future financial headaches. If you’re looking to get tenant insurance coverage Ontario, then here at Ron Johnston Insurance, we’d be more than happy to help. Contact us today to assess your options to get the perfect policy for you.