But the story can be a little different when it comes to the value placed on tenant insurance.
“Your home is more than likely the most valuable asset you own, and it makes perfect sense you protect it with home insurance,” says Gazal Dhillon, an insurance advisor with AMC Insurance, which has nine locations across Metro Vancouver offering services seven days a week for home, auto, life, travel, marine and commercial insurance.
“Tenants, they sometimes think insurance is not necessary,” she adds. “But it’s important because it protects them and their possessions from incidents, such as accidental damage, robbery, or instances where they may be liable for something.”
Tenant insurance also covers your extended living expenses in the case of a claim that could leave you homeless.
“Suppose there is water damage in the place you are renting. The landlord will take care of the property with their insurance policy, but your belongings will not be covered. Tenant insurance does,” Dhillon says. “And if you have to stay elsewhere while repairs are being made, tenant insurance also pays for those extra expenses, such as rent for a temporary home, and even food and other expenses incurred because your original rental property is not livable.”
For those concerned they don’t possess an amount of property worth paying a monthly fee for tenant insurance, Dhillon says think again.
“Tenant insurance is affordable,” she says. “And as you build up a history of having a policy, and no claims, you can qualify for a discount that you can eventually apply when you move into your own home and get house insurance.”
Discounts of around 15 per cent usually begin to kick in following your third year of claim-free coverage.
“And if you remain with the same insurance provider for a length of time you may also qualify for an additional loyalty discount,” Dhillon says.
But before you sign up for a home or tenant insurance policy, there are some important things to keep in mind.
To ensure you are adequately covered in the event of a claim, AMC insurance will accurately estimate the value of your possessions.
AMC Insurance offers different coverage options depending on your unique needs. “If you’re a student renting a home with other students, you may want to get specific tenant’s insurance for students to protect your laptop or textbooks. Also, if you have expensive items like jewellery or a bicycle, you can schedule it on policy for full coverage,” says Dhillon.
For more information on tenant and home insurance costs and coverages, visit AMC Insurance at amcinsurance.ca.