One of the great things about renting is the lack of responsibility. 

Hmmm…let me rephrase that.

One of the great things about renting is not having to worry about things like ‘what if the stove breaks’ and ‘the windows need replacing and ‘insurance’.

Right?

In fact, that last part was wrong.

Everyone should have insurance.  Be they a tenant or landlord, insurance is what keeps you…well…insured. We did a little bit of investigating over at IBC to find out what they had to say about tenant insurance and boy…did we learn a lot.

Let’s talk first about where you live.  As the tenant, you are liable for any harm that is caused to any part of the building and to others who live or visit there by you, or your home, or your actions.

For example, if your curling iron starts a fire that damages the complex and the other tenants items and homes; you are on the hook for a whole bunch of money. Insurance can help mitigate that liability. It can also help protect you should someone trip over your new Manolos and hurt themselves. You could be held financially responsible for the cost of the injured person’s pain, suffering and medical bills.

Speaking of those Manolos…what if you had to replace them? And their other well heeled friends. If you had to replace everything you own out of your own pocket, you could be looking at a few thousands of dollars for your clothing alone.  That’s not to mention all of your other personal items like electronics, furniture and prized possessions. Although subject to some exclusions or limits, tenant’s insurance will help you recover your losses.

The great thing is, tenant’s insurance is quite affordable.  Students can often be covered under their parent’s home insurance (make sure you double check with their insurance provider).  And if it isn’t covered, it’s still relatively cheap.  Stats Canada says that tenants insurance was on average $309 a year last year, which is less than half the amount spent by owners.  That’s about one latté and muffin (or one fabulous martini) a week.

Surely piece of mind is worth that?

Although this post has been generously sponsored by IBC, the opinions and language are all my own and in no way do they reflect The Insurance Bureau of Canada.