insurance iq
Your upstairs neighbour loves her evening baths . At 8 p . m ., like clockwork , you hear the faucet turn on . But tonight the water seems to be running a little too long . That fear is confirmed when a steady trickle starts creeping down your living room wall and begins pooling on your new area rug . No problem , the landlord will take care of it , right ? In most cases the landlord will fix the damaged drywall , but replacing that rug is on you — unless you have tenant insurance .
Tenant insurance is a type of property insurance that covers renters for their belongings , explains Lori Madsen , CIP , director of insurance services for CAA Saskatchewan .
Landlords should have insurance on the structure or dwelling , but it ’ s up to tenants to insure the contents or their
insurance iq
A Word to the Wise Renter
tenant insurance ensures your property is protected when you rent
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belongings ( i . e . anything they moved in with ).
“ Many people think they ’ re careful and will never have anything happen in their home ,” Madsen says . “ That may be true , but you never know how careful your neighbours are . And if you ’ re the one with the overflowing tub , you may be held financially responsible for damages caused to other units and common areas in the building .
Tenant insurance policies include legal liability coverage for these types of unintentional acts that cause property damage or bodily injury .
Most people can ’ t afford to replace damaged items or live somewhere else while their apartment or rental property is being fixed . That ’ s why insurance is so important . “ It gives you peace of mind ,” Madsen adds .
There are two common levels of tenant coverage you can purchase : a broad policy , which insures renters for named perils or causes of losses ( think fire , smoke , vandalism or theft ), or a comprehensive-style policy that extends to cover perils , such as accidental damages that may happen in your home .
Madsen suggests renters carefully consider all the “ stuff ” they own and its potential replacement value versus the cost of the insurance policy .
“ As most tenant policies cover your belongings for replacement value , it ’ s important to ensure that you take this into consideration when calculating the total limits to be insured ,” she says . “ It ’ s easy to think that because something is older and has not been used for a few years that it isn ’ t worth much . But if you have to replace it with a new model , the value increases greatly and should be insured accordingly .”
Insurance policies also have special limits on certain items due to their value or higher propensity for loss . This includes things like jewellery , bicycles and collections — coins and stamps , for example . Limits can be increased for an additional premium , and may vary from company to company , so it ’ s important to be aware of the limits in the policy and whether or not they meet your needs .
Madsen also suggests considering other insurance extensions , including home equipment breakdown , which covers electronics and appliances , and overland water and sewer back-up coverage .
If you have tenant insurance and you must leave your home due to a flood or other insured peril , policies will cover your moving and additional living expenses , up to stated limits , while your apartment is being repaired . With tenant insurance , you can rest a little easier and start shopping for a new rug . Without it , you ’ d better get out the mop .
Contact a CAA Insurance broker : call 1-800-564-6222 ( ext . 2 ) or caask . ca / insurance tdub video / istock
24 fall 2017
CAA saskatchewan