You never know when disaster can strike. The old, “it won’t happen to me” is a common sentiment until Murphy’s Law kicks in. Theft, fire and damage to apartments happen more than you would guess and you should be prepared, it won’t cost you much and you’ll worry less. Check out this neat Infographic resource from one of Canada’s top property managers, they’ve seen it all.
What does the monthly Tenant Insurance cost cover?
- damage to or loss of your possessions if you rent or lease your apartment or home
- personal property stolen from your vehicle
- injury caused to visitors (ex. slip and fall on the driveway)
- Accidental damage you cause to any part of the apartment building or home you are renting. If the bathtub overflows and floods your apartment, or you’re having a foam party (you’ll want to ask about coverage for this one before sending invites, parties probably won’t qualify as accidents). Tenant insurance can pay for the damage caused to your apartment, the building or neighbouring units.
I don’t have any expensive stuff!
Replacing one or two sweaters is no biggie but imagine having to dish out for 4 or 5 new pairs of shoes, not to mention a new laptop, TV or even a new bed! Are you adding this up? My rough count is up to about $4000 on these few items alone and we’re just scratching the surface. You get the point here; what’s a few hundred bucks a year for a piece of mind? If this sounds like scare tactics to you, you’re catching my drift.
Will my insurance cover the full value of my lost/damaged possessions?
There are two standard types of reimbursement and it’s important to understand the difference between the two; it can impact your premiums and affect how the insurance company assesses your claim. When shopping around for home, condominium or tenant insurance, make sure you find out if the quotes you receive are based on actual cash value or replacement value because premiums for replacement coverage will be higher than for cash value.
- Cash value coverage reimburses you for the value of personal belongings at the time of a claim. If your 3-year-old mountain bike is stolen, you’d receive the value less depreciation. If the original cost was $2,000, you might only receive $1,000, minus the deductible.
- Replacement cost coverage reimburses you for the full value of an item. If you’d have to pay $2,500 to buy that same mountain bike today, that’s what you’d receive, less the deductible.
Do Students need Insurance?
Starting at college or university comes with brain clutter like exams, parties, co-ops and friends but one thing that rarely comes to mind is insurance, and for good reason. If you’re a student you’ve probably never had the need for your own insurance; living at your parent’s house and driving their car means you’re insured under their policy. Depending on where you stay while attending school, you might need your own.
- If you’re living at your parent’s home or residence, you’re covered by their insurance
- There is usually a cap or limit to how much coverage a student can claim from their parent’s plan, make sure to inquire about the limitations.
- Students living off campus in an apartment, condo or house should definitely get coverage, especially if you’re living with roomates!
- Best of all, once you have insurance you can now host a raging foam party (I recommend attending rather than hosting, from personal experience)