Editor’s note: This article was originally published on July 4, 2013 and was updated on September 14, 2015.
Renting versus owning a home is on the rise in Canada, particularly in urban centres where the price of a home or condo is out of the reach of many middle-class income earners. It’s even been argued in national newspapers that renting may just be the way to go for people who are good savers. So where do renters turn if something happens to their stuff in the event of fire, water damage, or anything else? Many renters consider their situation to be temporary and don’t even get insurance. But as a renter, it’s one of the smartest things you can do. Here are 5 reasons why.
1. Tenants Insurance is Inexpensive
Compared to regular homeowners insurance, tenants insurance is very reasonably priced. There are a number of risks that insurance companies don’t factor into a tenant's insurance policy; basically they’re just worried about the contents of the home rather than the home itself. Renters insurance premiums are much lower as a result.
Renting versus owning a home is on the rise in Canada, particularly in urban centres where the price of a home or condo is out of the reach of many middle-class income earners.
2. Your Stuff Adds Up to More Than You Think it Does
If something happened to your apartment or rented home, you would need to replace your stuff. That includes your clothes, your television, your computer, your computer peripherals, DVDs, electronics, dishes, pots, and too many other things to list here. Even if you go out and get everything second hand, we’re talking at least four figures for everything in the average apartment. Isn’t a small monthly premium worth the peace of mind you’ll get from knowing that it’s all covered?
3. Stuff is More Expensive Than Back in The Day
If you add together the computers, electronics and cell phones in an average young adult’s apartment, you’re going to come up with a much higher dollar figure than you would have doing the same math back in the late twentieth century. It’s not out of line to see someone in their twenties with a $3000 MacBook Pro and the latest iPhone. Make sure you tell your insurance broker if you have higher value items, as you may need to purchase some additional insurance to make sure the dollar value of your policy matches what you would need to spend to replace your stuff.
4. Apartments are More Tempting to Thieves Than Homes
If a thief can break into an apartment building, they’ll be able to swipe many more high-value items than they could if they were just breaking into one house. In addition to an insurance policy, you may want to crime-proof your apartment using these handy tips.
It’s not out of line to see someone in their twenties with a $3000 MacBook Pro and the latest iPhone.
5. You Have Invisible Legal Liabilities You Don’t Know About
If you somehow damage your rented space, you are legally liable to cover the cost of repairs. This can end up putting a huge dent in your savings and will more likely be more than what you can afford. Tenants insurance will cover most of these incidents; talk to your insurance broker to find out what your policy covers and what it doesn’t.
Convinced? If you want to talk about tenants insurance and find out how inexpensive it really is, give us a shout or drop us a line today. Our helpful brokers will be happy to answer all of your questions.
*** Currently First Foundation is only offering Insurance in the province of Alberta ***