The Risks of Not Having Renters Insurance

November 1, 2017 4 min read
Risks of Not Having Renters Insurance

Some risks are not worth taking. Especially when the results can be financially and emotionally devastating. Did you know that while 95% of homeowners purchase a home insurance plan, only 40% of renters get insurance on their personal property? So why should you buck this trend and invest in yourself and your belongings?

Renters insurance protects you and your belongings from catastrophic loss or damage due to fire, water damage, or theft. It also ensures your financial security, by covering any damages or injuries you’re deemed liable for. Here are the top five reasons why protecting your future with renters insurance should be a top priority:

1. In the event that your possessions get damaged.

Belongings are so much more than things–they’re your livelihood, your comfort, plus you worked hard for them! Whether you’re a student with a mountain of textbooks and the latest laptop, or an avid photographer with all the latest gadgets, these items add up. For example, if you neglect to extinguish a candle and your home and possessions go up in flames, without renters insurance you won’t recoup the cost to replace your most important valuables. You’re 100% on the hook for repurchasing everything out of your own pocket.

2. In the event that your stuff is stolen.

It’s hard enough to lose belongings that hold so many memories, let alone be stuck with the financial loss of trying to replace them. In the case of theft, having an insurance plan will ensure that at least you’ll recover the financial cost of your most precious belongings. It doesn’t cost much either. For more information, check out our The Real Cost of Renters Insurance infographic.

3. Without renters insurance you could get evicted.

Some lease agreements include a clause that indicates tenants must purchase renters insurance. Have you checked your lease? Without coverage your landlord could potentially kick you to the curb, if you’ve signed and agreed to maintain insurance coverage. Mitigate the risk and cover your bases. Not to mention, avoid the stress of having to find a new place to live on a moment’s notice!

4. You’re legally responsible for all damages. 

You’re responsible; but certain things are out of your hands. This includes your roommate or even your beloved furry friend. Should your roommate cause damage to your suite or neighbouring suites, if neither of you have coverage, this cost becomes your burden. Moreover, any incident where damage, whether water, smoke, etcetera, is incurred you’re legally responsible. As for your pet, you’re also on the hook for their actions. If they take a nip at your neighbour or the delivery person, you may face not only medical fees, but also a nasty legal battle and its associated costs. We all fall victim to forgetting to turning off the stovetop or tap, and we can’t control the actions of others or our furry friends. Protect yourself from any financial or legal burdens with renters insurance that can be obtained in just a few simple steps.

5. In the event of a disaster, you may be left without a place to live.

Disasters happen whether you’re prepared for them or not. With renters insurance when natural forces like rain, lightning, or fire strike, you’ll be assured that your possessions will be protected. Beyond losing your possessions, if your suite is inhabitable, you’ll be stuck with the cost of temporary housing if you don’t have insurance. You could incur a massive financial burden if you factor in the cost of essentials you need to live–meals, work clothing, household items, and the list goes on. Worst case scenario, your finances could be hit so hard, it may lead to bankruptcy.

Still don’t think renters insurance is a necessity or your belongings aren’t that valuable?

Think again. All the small pieces add up, especially if you have to repurchase them all out of your own pocket or potentially face legal fees and disputes due to damage caused to neighbouring suites and/or tenants.

Finding the right coverage to protect your possessions and safeguard you from liabilities is within reach. With a few simple steps, you can potentially save big in the event of disaster or theft.

Our team at MIG is here to help you along the way. Check out our renters insurance resources or get started on finding the renters insurance plan to best fit your needs.

Written by

Alex Harms is part of our marketing team at MIG Insurance and she specializes in writing content to make insurance easier to understand for our clients. She obtained her Bachelors in Commerce (Hons.) at the Asper School of Business and worked with MIG as a broker during her studies and now fulltime in a Marketing & Operations role. She has taken on many tasks her at MIG but enjoys the challenge. Outside of work she enjoys spending time with her family as well as her dog Murphy, out at the lake which is their favourite spot!