Are you part of the third of Quebecers who live in an apartment or a house that they do not own? Tenant insurance is for you. Although it is not mandatory in Quebec, it remains essential to save you a lot of hassle in the event of an unfortunate incident.
In 2017, the Corporation of Quebec Real Estate Owners (CORPIQ) estimated that 37.8% of Quebec households were tenants in their homes. According to data from the Insurance Bureau of Canada, 37% of Quebec renters are not not insured.
In other words, if the building you live in suffers a fire, your landlord’s insurance will cover the building damage without, however, absorbing the loss of personal effects, such as furniture, entertainment equipment or jewelry belonging to you.
If you recognize yourself by reading these lines, know that it is strongly recommended to subscribe to a basic protection to buy peace of mind, and this, regardless of the value of your material goods.
What is tenant insurance?
L’home insurance for tenants (or tenant’s insurance) is insurance for the movable property of the dwelling for tenants. It covers your property against theft or damage while you rent an apartment or house.
If the coverage protects the personal effects that are under your roof, it also insures those that are temporarily elsewhere. For example, when you go on vacation and your suitcase is stolen. Did you know that your home insurance also covers the theft of your belongings from your vehicle or the theft of your personal laptop from a café or public transport? It’s a think about it!
However, thetenant insurance does not cover the physical structure of the house or building, as the owner normally provides this coverage through their home insurance policy. Renter’s insurance will also not cover furniture or equipment provided by the ownerwhich will be covered by its own policy.
It’s a simple and inexpensive way to protect personal property and living expenses in the event of a disaster. According to data from the Insurance Bureau of Canada (BAC), the average annual premium for a Quebec tenant is $324, or $27 per month. At this price, it’s not worth it!
How to find the right protection?
Here are some tips for finding the best tenant insurance:
1. Assess your need : Take into account your personal situation and make sure you take out insurance that meets your needs. Take an inventory of your assets and estimate their replacement value (as new). To establish the value of the goods you want to insure, you can use the Insurance Bureau of Canada (IBC).
2. Shop : Request assessments from at least 3 insurers. There are online tools to help you compare insurance companies, their different coverages and their rates, like this one.
3. Bundle your insurance : Many insurers offer substantial discounts when you combine your insurance in the same place.
4. Increase your deductible : Ask for a higher deductible, keeping in mind that you will have to pay this amount when making a claim.
Home insurance for tenants: is it mandatory?
The short answer is Nope, but it remains essential and above all, it avoids many problems in the event of a claim. However, if you sign a new lease, yes.
CORPIQ strongly encourages landlords to require formal proof of insurance from their tenants each year. That said, your landlord cannot force you to insure yourself during the lease if this requirement was not stipulated at the time of signing.