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Tenant Insurance in BC
Did you know a property owner's insurance policy will not cover damages to a tenant's belongings, personal safety or other financial considerations. Instead, renters would need a tenant insurance policy to get compensated for damages caused by an accident or catastrophe at their residence. Learn more about Tenant Insurance here.
Everything You Need to Know
Nearly one-third of BC residents call a rental suite or property home. A benefit of renting a home instead of buying is most home maintenance issues and tasks are part of the monthly rent. And, in the event of a fire, flood or other types of building damage, tenant can rest assured the property owner's home insurance policy will cover repairs to the building.
However, a property owner's insurance policy will not cover damages to a tenant's belongings, personal safety or other financial considerations. Instead, renters need a tenant insurance policy to get compensated for damages caused by an accident or catastrophe at their residence.
Plus, if a tenant is found responsible for damaging their rental property, such as causing a fire, and is without tenant liability insurance, they can be on the hook for extensive repair costs.
Tenant insurance is important, and in this article, we will explain what tenant insurance is, why it's essential for BC renters, and some guidance on how to get a renters insurance plan.
topics of discussion
What is tenant insurance?
Is tenant insurance required in British Columbia?
Four unexpected benefits of renters insurance in BC
Types of tenant insurance
How much does tenant insurance cost in BC?
Tips to decrease your renter’s insurance premiums.
Where to purchase a tenant insurance policy
What is Tenant Insurance?
Tenant Insurance is a type of insurance designed to protect personal property and personal safety of people who live in rental homes.
It can also include safeguards to protect tenants against potential liability claims if they accidentally cause damage or harm to the rental property.
A Simple Case for tenant Insurance
For instance, let's suppose a renter's young child turns on the bathtub faucet before the family leaves for the day. This causes the tub to overflow, damage the bathroom and eventually leak water into the unit below.
The tenant who rents the unit where the child caused the leak would be held responsible for the damages to the building. Suppose they do not have renters liability insurance. In that case, they will have to pay out of pocket to cover the costs of those repairs, which could be a significant amount.
Additionally, suppose water from the overflowing bathtub damages any belongings of the tenant below them. In that case, the child's parents may need to compensate those tenant for replacing the damaged property.
However, if the tenant responsible for the water damage has a comprehensive insurance policy, their insurance company may protect them. They may cover the costs of remediating the water damage and replacing their neighbours' damaged property, saving them thousands of dollars and undue financial hardship.
Reasons for Carrying Rental Insurance
The above-leaking bathtub scenario won't happen to everyone. However, tenant insurance comes in handy in many other, less severe situations.
Common examples of where tenant insurance comes in handy include the following:
Repair or replace property damaged by flood, fire or rodent activity.
Protect valuables and investment assets, such as jewellery or art.
Replacement of belongings in the event of a break-in.
Liability coverage in case of a personal injury or property damage.
May cover additional expenses of living elsewhere while not able to live at the rental unit.
Is Tenant Insurance Required in British Columbia?
In British Columbia, tenant or renters insurance is not mandatory by law.
However, an increasing number of landlords and property management companies in BC require renters to carry tenant insurance as a lease condition. Those who don't can quickly find their property and tenant in financially tricky situations.
Even though it's not mandatory, tenant insurance is a good idea. Renters should prioritize rental insurance premiums as they would other essential monthly living expenses such as their utilities or internet/cable services.
Without rental insurance, tenant are exposed to great financial risk and potential unforeseen losses.
Four Unexpected Benefits of Renters Insurance in BC
Alternate Accommodation Costs
If your rental property suddenly becomes unlivable, you may require alternate housing while the problems are being resolved. And, you may find yourself in a hotel or alternate living space for an extended period if the extent of the remediation requirements is extensive.
Shockingly, in BC, there are very few instances where a landlord is required to source alternate accommodations for their tenant if their unit becomes unlivable.
Having renters insurance can help protect you financially if you find yourself suddenly displaced from your home due to fire, flood, natural disasters, or other causes of severe damage.
Going on Vacation?
If you happen to accidentally damage the vacation property you're renting, you can rely on your rental insurance's personal liability policy to potentially help cover your costs and responsibilities.
Bicycle and Storage Insurance
Cycling is a popular activity and commuting choice for many BC residents. With a comprehensive policy, you can schedule your bicycle onto your tenant insurance policy should it be higher than the insurer’s limitation. Where the bicycle is kept or how it is stored is dependent on each insurer.
Cash Settlement Options
Tenant insurance policies purchased from Maxxam Insurance and insured through their Tenant Insurance provider, allow renters flexibility regarding compensation for insured property. For instance and for example, if there's a break-in at your rental home and several items are damaged, you can select a cash settlement instead of having the damaged items repaired.
Common Types of tenant Insurance
In BC, renters can purchase multiple types of tenant insurance options to safeguard their possessions and financial security. The most common types sold by insurance brokers include the following coverage solutions:
Personal property. This will cover personal property and belongings should they become damaged, destroyed, or stolen from your rental home.
Liability. This will protect you from financial hardship if you are found to be at fault for damaging your rental property, the building, or your neighbour's belongings.
Sewer Backup. Water damage is a top reason for home and property insurance claims. Unless a sewer backup clause is included in your rental insurance policy, you may be at a loss if your rental home's sewer backs up.
Earthquake Insurance. Most BC residents live in an earthquake zone. Earthquake insurance will help cover the repair and replacement of your belongings if damaged by an earthquake or seismic event.
How Much Does Tenant Insurance Cost in BC?
Tenant insurance rates vary from policy to policy for a number of reasons. The best way to determine the price you should pay for a comprehensive plan is to talk to an insurance broker licensed by the Insurance Council of BC with experience in writing renters insurance policies.
What factors affect tenant insurance rates?
Rental or tenant insurance can be tailored to your individual needs and is generally based on the following factors:
Property type. Are you renting a house, apartment, condo, townhouse or rural property?
Value of assets. How much property you own and the amount it's worth will impact your insurance policy price.
The number of occupants. How many people will live with you in your rental home? Are they your dependents or roommates with their own insurance plans?
Liability Coverage Choice. The recommended amount of personal liability coverage varies based on numerous factors; however, it can range anywhere from $500 thousand to several million dollars.
Location. What city and neighbourhood you live in will impact the price of your rental insurance plan.
History of Claims. Renters who have made claims in the past may have to pay higher insurance premiums than those who have never made a claim. Conversely, those with an established history of carrying continuous rental insurance without any claims will likely be offered better rates.
Exposure to Risk. How easily your rental unit and property can be put at risk will factor into your policy price. For instance, a ground-floor apartment with patio door access to a street may have higher premiums than an eighth-floor apartment with biometric security controls in the building's elevator.
Tips to Decrease Your Tenant Insurance Premiums
As with all insurance policies, including auto, business or life insurance, there are things you can do to help lower your annual premiums.
The best way to get the best possible price on rental insurance without sacrificing coverage options is to shop around and speak to tenant insurance experts. However, that’s not the only thing you can do for a great priced policy.
Below are some tips to increase your safety as well as measures that may help to mitigate risk and also could potentially provide lower insurance rates dependent on the insurer.
Invest in Security & Surveillance Measures
Installing security measures cameras around your property's access points can help prevent robbers from breaking and entering your home. Examples of helpful security tools for a rental property can include:
Wifi locks
Surveillance cameras for doors and windows
Monitored Burglary Alarms
Choose a Safe Neighbourhood
Crime rates in the neighborhood you live in can impact rental insurance rates. If possible, move to the safest location you can comfortably afford to live.
Choose a Secure Home or Building
If you rent a unit in an apartment building or condominium complex, try to choose one with security measures such as security doors, hallway surveillance cameras and controlled elevator access controls. This will help reduce the risk of your home being broken into or vandalized.
Increase Your Deductible
Increasing your deductible helps lower the insurance premiums of many types of insurance, including tenant insurance. Consider increasing your deductible for potential savings.
Where to Purchase a Renters Insurance Policy in BC?
Renters insurance can be purchased from a private insurance broker or company located anywhere in British Columbia. To get the best tenant insurance policy in BC, it's important to find an experienced and licensed broker.
Places to source an insurance plan for your tenant insurance policy include:
Insurance broker
Autoplan Agency
At Maxxam Insurance, we offer comprehensive tenant insurance plans for all types of tenant and rental properties. We're proud to call BC home and work-hard to care for our community and clients.
With Maxxam Insurance as your rental insurance provider, you can trust that we'll customise a personalized policy that meets your unique needs, budget and circumstances. Plus, you can have the confidence that we'll be there for you with a 24hr claims line.
Feel Secure with Tenant Insurance from Maxxam Insurance
If you're a tenant in BC, it's essential to protect yourself from financial losses and legal liabilities as well as safeguard your personal belongings. By carrying tenant insurance, you can rest assured that your home and your possessions are protected against the risks of everyday life.
To get started on a rental insurance quote, or have other insurance questions answered, reach out to our experienced and helpful insurance brokers today. We're happy to help you understand your coverage needs and determine what policy type will serve you best!
Find an insurance broker nearest you for a quote!
How to Build an Earthquake Preparation Kit
BC is the province that gets the most earthquakes every year. Learn to build an earthquake preparation kit and what you can do to protect your home.
British Colombia has the highest number of earthquakes on average per year in Canada. In fact, several earthquakes of at least magnitude 6 have been felt every year in BC over the past 10 years. As a BC resident, you should be prepared for an earthquake in the future because, apart from causing significant property damage, it can trap you inside your home and cut short your supply of basic necessities. With that being said, here is a comprehensive list of how to build an effective earthquake preparation kit that ensures your survival for 3 to 7 days.
With adequate preparation, the earthquake is not as scary as it sounds.
What exactly do you need to survive without access to electricity, water, and food?
Non-perishable food and a manual can opener
Bottled water, at least 4 litres per person per day
Seasonal clothing with sturdy footwear
Personal toiletries, with medication and an extra pair of glasses if needed
A radio, either hand-cranked or with extra batteries
A flashlight, either hand-cranked or with extra batteries
Cash in small bills
A whistle
A blanket or sleeping bag
Garbage bags and moist towelettes
A first aid kit
A dust mask
A copy of your emergency plan and any other important documents
How will your home be impacted in an earthquake?
An earthquake will seriously damage your home by causing costly breakages to its structure and furnishings. Your belongings moved by the earthquake may also be damaged or broken.
Insure your home with Maxxam Insurance
Adding an earthquake coverage to your existing home insurance policy will help protect your home from a total loss in the event of an earthquake. An earthquake coverage can help you and your family to restore your home in the aftermath of an earthquake. Call 250-391-8809 (Victoria) or 604-524-9277 (Burnaby) to chat with a home insurance expert about your earthquake coverage today!
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Talk to one of our experts about your coverage today.
Tips for Savings on Home Insurance
Whether you’re a first-time homeowner or you’re getting ready to downsize, there’s a lot to think about when you’re buying a new home.
MAXXAM WILL SAVE YOU MONEY
Whether you’re a first-time homeowner or you’re getting ready to downsize, there’s a lot to think about when you’re buying a new home — and once you’ve found your humble abode, the last thing you want to worry about is the cost of insuring it. Fear not! Maxxam Insurance has some money-saving tips to help you get the right coverage at the right price.
1. Newer is better.
If you’ve got the choice between an older home and a newly constructed one, keep in mind that many insurers give discounts on newer homes. It stands to reason — most new builds come with some sort of warranty and repairs aren’t generally an issue for the first few years of ownership. And to an insurer, that means fewer claims.
2. Skip the bank (if it works for you).
If you’ve worked hard to set aside a large down payment or have access to savings, consider opting for a less expensive home and go mortgage-free. This move could get you a discount from your insurance provider and help keep a little extra cash in your pocket.
3. Go for a higher deductible.
Choosing to pay a higher deductible in the event of a claim is a sure-fire way to reduce the premiums you pay. The higher the deductible you choose to pay, the lower your insurance rates will be. Just be sure you choose a deductible amount you’re comfortable paying if you need to make a claim down the road.
4. Keep claims to a minimum.
Of course, you want your home insurance policy to have you covered when you really need it, but keep in mind that many insurers give discounts to customers who are claims-free for a set period of time. It might pay to look at a low-value claim and assess if it’s really worth filing, or if it’s better to pay for minimal losses or damage yourself and keep your hard-won claims-free standing.
5. Embrace your age.
Insurance companies love mature homeowners — and what’s not to love? You’re generally more established financially, and past your “wild party” (read: damage-inducing) days. Look for a discount on your home insurance if you’re 45 and older.
6. Secure the perimeter.
Or at least install a company-monitored or self-monitored home security system to ward off break-ins. It helps to reduce your risk of damage and theft, and most insurance companies will reward your efforts with a discount.
7. Make your home more resistant to damage.
Some types of home improvements can help you save on insurance. Installing a sump pump or a backwater valve (or both!), for example, could reduce your chances of making a water damage claim — so it will generally reduce your home insurance premium, too.
8. Shop around with the help Maxxam Insurance.
Why pay more than you have to? A Maxxam Insurance Broker will listen to your needs and find coverage options at varying price points for you to choose from — and help point out other discounts and opportunities for savings that you might not be aware of.
Home Insurance
Count on our experienced brokers to deliver a comprehensive and competitive policy that is tailor-made for you
Author: Don McCormick
The Specialists of Home Insurance
Buying home insurance can prove to be overwhelming. With all the different insurance companies and different policies, you may find yourself stuck between where to go and who to go to. That’s where we come in!
MAKE PEACE OF MIND YOUR PRIORITY
Buying home insurance can prove to be overwhelming. With all the different insurance companies and different policies, you may find yourself stuck between where to go and who to go to. Especially if your mortgage lender is looking for proof of coverage to bind. That’s where we come in!
An Insurance company will direct you through some of the key features of a policy, but for the most part you’ll want to read through it from beginning to end to really understand exactly what you will be getting. However, how likely is it that you will read every word of an extensive policy? Where do you even begin?
Most insurance policies are written with confusing language, and it may seem like they’re only that way to confuse and overwhelm you. So, what is there to do about this? You may buy it and file it, or spend all your spare time researching every nuance of this contract. Both of those options sound equally unappealing.
So, let’s start from the beginning…
Why do you even need Home Insurance?
In most cases, home insurance is required because of mortgage financing requirements. The lenders will make this a required term of the contract to protect your home, (and their investment) in event of damage caused by unforeseen circumstances.
So, while you may not have a choice in having home insurance, you do have a choice in where you get it from. There are several avenues to choose from; online, cooperate agencies and specialty brokers. How do you make the decision?
Maxxam Insurance is different, we’re local to you — Vancouver Island made. Our brokers make buying Home Insurance easy, we use simple language to help you truly understand what you’re covered for and what you’re signing for! With insurance that is tailored to you, we have the option to look through multiple insurers to find you the best possible rate.
So, when you go shopping for home insurance, go to the specialists. Maxxam Insurance’s team of experienced and reputable Insurance Brokers know the market inside and out, and can give you the best advice for all your needs. We can arrange the coverage that is right for you, and if you ever need assistance, you know who to call!
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Let’s find you the best possible rate.
Whether you’re a first-time homeowner or you’re getting ready to downsize, there’s a lot to think about when you’re buying a new home.