7 Not-So-Obvious Benefits of Renters Insurance

August 16, 2018
Renters

Today there are more renters than in recent years. Home ownership in Canada is at its lowest point since 2006.  When baby boomers were 30 years old back in 1981 (on average), 55.5% owned their own homes.  In comparison, of millennials at age 30 in 2016, just over half (50.2%) were homeowners. This can be chalked up to the rising cost of home ownership and the desire of millennials to not have their dollars tied up in assets.

What is renters insurance?

Renters insurance provides financial protection in the event that your personal property is damaged or destroyed as a result of an insurable event (fire, theft, vandalism, etc). It will replace your furniture, electronics, clothing and any other personal property.

Another important aspect of renters insurance is liability coverage which provides financial protection for you if you are held responsible for damage to the property of others or bodily injury to others.

What does renters insurance cover?

The three main things renters insurance covers you for are things that happen to your personal belongings, things that other people hold you responsible for (and expect payment from you!) and things that force you out of your place (and the costs involved with that!).

In other words, renters insurance will keep you from financial harm should an unforeseeable and unfortunate event causes damage and even injury.  It helps take the financial sting out of nasty surprises like damage resulting from an overflowing tub or a fireplace fire gone out of control. Accidents happen and when they do, your renters insurance will help get you back to the point you were before that event, as long as the damage is from an insured peril.

Renters insurance also protects you financially if you are liable for damage to property of others.  Let’s say that fire caused plumes to run freely throughout your apartment block. Your liability coverage will kick in to repair the smoke damage caused to other suites. And the cool thing about liability coverage is it follows you wherever you go so you’re covered at home, at a friend’s, or even on vacation!

Learn more about renters insurance over at our renters insurance hub.

Why you need renters insurance

Renters insurance provides important financial compensation if you face an unfortunate event that causes damage to your personal belongings, the belongings of others, even bodily injury that you are responsible for. It even provides you with the financial ability to keep your life moving along as smoothly as possible with additional living expenses for the cost of alternate accommodation and expenses incurred that otherwise you would not have.  

Check out our blog post to learn more about why you need renters insurance.

Benefits of renters insurance

Almost half of renters in Canada don’t have renters insurance.  You may then ponder why all these renters don’t have tenant insurance if there are so many benefits to it? When it comes to protecting you, your stuff, and your peace of mind you’ll want to make sure that you have the best coverage out there and know exactly what you are getting with this coverage and all the ways it will benefit you.

In addition to the benefits outlined above, let’s make some things clear! Your landlord’s policy will not cover you and renters insurance is a lot more affordable than you think. The fact that it’s cheap doesn’t do much if you don’t know all the benefits.  Renters insurance could be free and some people still wouldn’t care if they don’t know how it applied to them and their stuff. So we’ve rounded up some benefits that may not be so obvious.

Personal belongings away from home

Did you know this one?  Someone swipes your laptop at your favorite coffee shop while you’re making your order. All hope is lost right? Wrong; your policy has your back.  Yup, you heard that right. Even though it occurred away from your home, renters insurance covers you and your personal property whether you are at home or out and about, living your best life.  

Dog bites

So it turns out your dog doesn’t just have more bark than bite?  No worries, your renters insurance policy still has your back, whether your dog was walking you at the park or hanging out at home.

Accommodation costs after a disaster

You’ll be happy to know that your policy will cover your lodging and meals if you are temporary displaced from your residence by a covered peril.  

Medical expenses for injured guests

So, you have some clumsy friends (who doesn’t)?  Don’t worry; you can still have them over. Your policy will cover you if they decide to try out for the olympic diving team down your stairs or decide dinner will taste better with a part of their thumb in it.

Liability coverage while you’re travelling

The great thing about renters insurance liability coverage is it protects you at home as well as when you’re travelling.  Let’s say you open a car door just as a cyclist is passing by. Your renters insurance policy will cover any expenses incurred in looking after injuries and the bicycle itself.  Portable peace of mind while you travel away from home!

Legal costs if you’re sued

In insurance speak, we refer to this as third party liability coverage. This will cover you in the event that you are sued do to your actions or negligence.  Your policy will not only cover legal fees that you may incur defending yourself, but will also pay to cover damages you are found liable for.

Identity theft protection

Identity theft protection is part of your renters insurance program.  This added benefit provides compensation for the countless hours of your own time and that of a lawyer to undo all the damage caused by someone who has stolen your identity. Making sure you reclaim your identity can be an onerous process but at least you will have the financial ability to carry out the tasks to get you back to being “you” again.

Identity theft coverage through your renters insurance is a built-in coverage to help you reclaim your identity. It will provide compensation for the countless hours of your own time and legal advice to undo the damage done by an identity thief.  Working with credit bureaus, lenders, credit card companies and law enforcement will all take time and money and the identity theft coverage through your renters insurance will compensate for this lost time and expense.

If these benefits have resonated and you think now is a good time to buy renters insurance, take the time to document how much your stuff is worth and then use our renters insurance calculator to estimate how much a policy might cost you. You’ll find the calculator, answers to common questions and many more resources over at our renters insurance hub.

MIG Insurance
MIG Insurance