We’re more than just insurance. Here you’ll find tips and tricks for your insurance, and what we bring into our local communities.
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!
First-Time Home Buyers' Checklist
Buying a house for the first time can be nerve-racking because it comes with huge costs and responsibilities. Keep this checklist in mind to ensure that you are fully prepared to buy a new home for the first time and start a new chapter in your life!
Owning a home means that you have a strong financial foundation to provide a decent life for yourself and your loved ones. As one of the biggest decisions that you will ever make in your life, buying a house for the first time can be nerve-racking because it comes with huge costs and responsibilities. Keep this checklist in mind to ensure that you are fully prepared to buy a new home for the first time and start a new chapter in your life!
Step 1: is owning a home right for you?
Does your current lifestyle really require that you own a home? If you are someone who has lived in your parents’ house and rented all your life, you may not be aware of the real costs of homeownership.
Some costs to consider:
Upfront costs
Down payment, closing costs, and any applicable taxes.
Ongoing costs
Mortgage payments, property taxes, insurance, utility bills, condominium fees (if applicable) and routine repairs and maintenance.
Major repairs
Large and expensive repairs such as roof replacement or foundation repair.
Some questions to ask yourself:
-Are you financially stable?
-Do you have the financial management skills and discipline to manage this large investment?
-Are you informed of all of the costs and responsibilities that come with owning a home?
-Are you prepared to dedicate the time to maintaining your home regularly?
Buying a home for the first time is exciting, but having everything in order is equally tough.
Step 2: are you financially prepared to be a homeowner?
As a first-time home buyer, you need to make sure that you are aware of your financial situation before you start looking for a home. Here are some calculations that can tell you if you are ready:
Calculation A
1. Figure out how much you spend monthly on these four categories.
Household expenses Loans and debts
□ groceries □ credit cards
□ tuition □ car loans
□ clothing □ personal loans
□ gifts □ lines of credit
□ housing maintenance □ student loan
□ child care
Entertainment expenses Saving and donations
□ dining out □ RRSP
□ spectator events □ TFSA
□ magazines and books □ saving accounts
□ hobbies □ charitable gifts
□ travel
2. Subtract that number from your total monthly net income (the amount of money your household earns monthly after taxes and deductions). The difference the amount of money you have left each month after expenditures.
Calculation B
How much can you afford?
Affordability rule 1
As a general rule, your monthly housing costs should be no more than 32% of your average gross (before-tax) monthly income. This percentage is known as your gross debt-to-income or gross debt service (GDS) ratio.
Housing costs include:
-Your monthly mortgage payment (principal and interest)
-Property taxes
-Heating expenses
-50% of condo fees (if applicable)
-50% of homeowners association fees (if applicable)
-100% of the site rent for leasehold tenure (if applicable)
Affordability rule 2
As a general rule, your monthly total debt load should be no more than 40% of your average gross (before-tax) monthly income. This percentage is known as your total debt-to-income or total debt service (TDS) ratio. CMHC restricts homebuyers to a 42% TDS ratio to qualify for an insured mortgage.
Your monthly debt load includes:
-Housing costs (amount calculated in rule 1)
-Car loans or leases
-Credit card payments
-Line of credit payments
-Other mortgage payments
Calculation C
Figure out the upfront costs.
□ Down payment — the part of the home price that is paid when you make an offer to purchase
□ Home inspection and appraisal fees
□ Insurance costs — including property insurance, mortgage loan insurance, etc.
□ Land registration fee — based on a percentage of the purchase price of the property
□ Prepaid property taxes and utility bills — you may have to reimburse the seller for bills paid in advance
□ Legal or notary fees
□ Potential repairs or renovations
□ Moving costs
□ GST/HST/QST on the purchase price (for newly built homes) or on the mortgage loan insurance (if applicable)
Step 3: financing your home
If you think you can afford your home based on your calculations, you are ready to meet with your mortgage lender or broker to discuss your financing options and confirm that you are financially prepared to buy a home. They will discuss mortgage terms and interest rates and will explain what your next steps to make sure that you get approved for a mortgage once you find your new home.
Looking for a first mortgage? Contact Maxx Mortgages for a free consultation! We will offer you valuable insight as we walk you through the process and find you the best mortgage that is tailor-made for you.
maxx mortgages
The experienced mortgage advisors at Maxx Mortgages are committed to making the mortgage financing process simple.
It’s better to get pre-approved for a mortgage before starting to look for a home. A pre-approved mortgage lets you know your affordability, your interest rate, and what your monthly mortgage payments will look like. Getting pre-approved can help you narrow your search down to a specific home type, size or neighborhood.
Bring the following list of documents when you meet with your lender or mortgage broker. This will help them decide whether you are qualified for a mortgage.
□ Contact information for your employer and your employment history
□ Proof of address and your address history
□ Government-issued photo IDs with your current address
□ Proof of income for your mortgage application
□ Proof of down payment (amount and source)
□ Proof of savings and investments
□ Details of current debts and other financial obligations
Lenders and brokers will look at your credit history when determining if you qualify for a mortgage. Before you apply, it’s a good idea to get a copy of your credit report to ensure there aren’t any mistakes or surprises.
Step 4: finding the right home
What does your dream home look like?
Our Victoria real estate team have spent the majority of their careers in Greater Victoria and have the intimate knowledge required for providing you with the best advice and assistance in local real estate and property investments. Contact our experts for your first home purchase!
maxxam realty
Your local Real Estate Experts, showing you the beauty of Vancouver Island, and tips and tricks when it comes to buying and selling a home.
-Location: Do you enjoy the hustle and bustle of downtown, or do you prefer a quiet suburb or countryside? Does the neighbourhood have a look and feel that suits your style? Do you want to live close enough to grocery stores, school, work, and public transit without the necessity of a car?
-Size: How many bedrooms or bathrooms do you need? Do you need space for a home office, a garage, or extra storage?
-Special features: Do you need an air conditioner or a swimming pool? Do your family members have allergies, environmental sensitivities or other special requirements? Do you want your home to be environmentally friendly?
-Lifestyle: Which stage of life are you at currently? Are you planning to have children, have teenage children who will move away soon, or close to retirement? Do you want to live near parks, community centres, churches, or family and friends?
Step 5: making an offer and closing the deal
Your offer should include:
-Your legal name, the name of the seller and the address of the property
-The purchase price (the amount you’re offering to pay)
-The amount of your deposit
-Any extra items you want included in the purchase such as window coverings or appliances
-The closing date, which is the date you want to take possession of the home (usually 30 to 60 days after the agreement is signed for existing homes and longer for newly constructed homes)
-A request for a current land survey of the property
-The date the offer expires
-Any other conditions that must be met, such as a satisfactory home inspection or lender approval of your financing
Before closing the sale, you need to get home insurance and present proof to your lender.
Maxxam Insurance represents Canada’s top insurance companies. As your first-class insurance specialists, we will help you find a plan that will meet your budget and coverage needs. A sound residential insurance policy can give you peace of mind against unforeseen loss or damage. Contact us for a free quote!
home insurance
When it comes to residential insurance you can count on our experienced brokers to deliver a comprehensive and competitive policy that is tailor-made for you, your family, and your property.
Tips to Prevent Household Floods
If you live in an area that is prone to flooding, you should be knowledgeable about how to prevent household floods because they could severely destroy your house structure and personal belongings and cause insurmountable loss. Here are some tips to help you effectively prevent household floods in BC.
Knowing how to prevent household floods can save you lots of money and stress.
Although floods are common in BC and can occur at any time of the year, they happen most frequently in spring and early summer due to heavy rain and melting snow. They can also be caused by storm surges, ice jams or damage to structures like dikes or dams. If you live in an area that is prone to flooding, you should be knowledgeable about how to prevent household floods because they could severely destroy your house structure and personal belongings and cause insurmountable loss. Here are some tips to help you effectively prevent household floods in BC:
Seal the cracks
One easy trick to prevent household floods is seal the cracks in your foundation walls and basement floors from inside of your home.
Install window wells and covers
Window wells and covers are designed to block debris and moisture from reaching your basement windows. Well covers and plastic sheeting can serve as extra protection from flooding.
Add a weeping tire or foundation drain
A weeping tire is important to household flood prevention because it is used for underground water collection and ensures that your house has proper drainage.
separate your weeping tile from the sanitary or storm sewer drain and install a sump pit and sump pump
Weeping tile connected to the sanitary or storm sewer drain increases water flowing into the municipal sewer system when it rains heavily, which is why you need a sewer backup. Ensure that you plant a sump pump (in its own sump pit) to move water to the surface where it can safely flow off.
Avoid dumping fats, oils, and grease down your drains
Dispose of these substances with your organic waste to minimize blockages.
To protect your home from unforeseen financial losses due to flooding, contact Maxxam Insurance to get a tailor-made home insurance coverage!
home insurance
Maxxam delivers a comprehensive and competitive policy that is tailor-made for you, your family, and your property.
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
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.