Tenant Insurance in BC

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:

• Doorbell camera

• 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!

7 Top Benefits of Tenant Insurance

Why Tenants Need It and Why Landlords Should Require It

When buying a home, it is typical that the lender requires the buyer to have home insurance – to protect their funds in case of an unfortunate event leading to damage or destruction of the home. However, when this home is deemed a rental property there is a common misconception that home insurance is enough. In fact, a high percentage of renters skip getting insurance all together! Here are some key points why Tenant Insurance is so valuable, to both the Tenant and the Home Owner:

• To Protect the Tenant’s Possessions in Case of Accident (eg. Flood or Fire)

The home insurance policy held by the home owner typically only covers the property and building structure, in case of damage or destruction. Therefore, if there was a fire the tenant would have no coverage for his/her possessions if they do not hold tenant insurance.  Content replacement cost is widely underestimated.  Even if an individual has minimal possessions, the cost to replace everything kept in their home, from spices in the kitchen cupboard to clothing, to basic hygiene supplies adds up extremely quickly.  Add in furniture, electronics and jewelry and this would accumulate to be a large loss for someone without insurance.  In comparison to the cost of tenant insurance, it seems quite simple that it is not worth not having an insurance plan in place to cover a potential disaster.

• To Protect the Tenant’s Possessions in Case of Theft

Unfortunately theft and burglaries do happen. When a home owner experiences a home burglary, their stolen possessions are typically covered by their home insurance policy.  If you are a renter and someone breaks into your home, the insurance policy held by the home owner will not cover your stolen possessions.  These possessions would only be covered if you held a tenant insurance policy that included this. In addition, this coverage could also protect the tenant’s belongings while they are away from home, for example in their vehicle or while travelling. When looking for a tenant insurance policy ensure you explore which cases of theft would be covered.

Renter’s Insurance, for the unexpected.

• Liability Coverage

Tenant’s insurance provides coverage in case of an incident of unintentional bodily injury to others.  This could include a situation in which a guest was injured during a visit to the home, such as a fall on a slippery step or even in the instance that a family pet (dog) was to bite.  If such a situation was serious, the tenant could be responsible for costs including the cost of medical expenses and loss of wages due to injury. Most individuals do not have the financial means to compensate others that are injured, or the cost of defending a lawsuit without this liability coverage.

• Accidental Damage to Property not Owned by You

  • In addition, accidents happen and have the potential to be very costly.  If a tenant causes damage to the property of the landlord, whether it is as small as breaking a window or as large as an unattended candle causing a fire throughout an entire apartment building, the tenant is responsible to repair these damages.  From a hundred dollar repair to millions of dollars in repairs, holding tenant insurance can cover unintentional damages.

• Living Expenses during Repairs

If a home did incur such damages that it needed extensive repairs and was not fit to live in, the living expenses of the tenant while these repairs were being made would only be covered if the tenant had his/her own insurance policy. Could you imagine having to leave your home for a few weeks or a few months as it goes through repairs resulting from a flood or fire? Just a few weeks, let alone a few months would be extremely pricey to find immediate short term accommodation. A typical person would not be able to afford such expenses.  A tenant insurance policy could provide the safety net of covering such expenses in this emergency situation.

• Affordability

Another great benefit of tenant insurance is how affordable it is.  Rates of course will depend on the coverage chosen within each individual policy, but regardless the low cost of these policies in comparison to the financial hardship that could arise from not having a policy in place is peanuts.

• Happy Tenant = Happy Landlord

In all cases of unfortunate events in which tenant’s have their own insurance policies, you can see it can provide a lot of resources and comfort in these situations. Without holding an appropriate policy, chances are the tenant will incur a lot of undue hardship and financial strain. Therefore, tenant insurance can provide security, peace and comfort to the tenant. The landlord depends on the financial commitment and responsibility of the tenant.  Therefore, as described above there are many benefits of having tenant insurance both for the tenant and the landlord.  At the least, landlords should be encouraging all their tenants to acquire this type of insurance, to ensure security for all. A Happy Tenant = a Happy Landlord.

Don’t forget to contact Maxxam Insurance for all your Tenant Insurance needs!

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