Tenant insurance Hamilton

If you rent a house in Hamilton, you may be exposing yourself to risks you're not aware of, which is why getting insurance protection in place is a must. Whether you're a first-time renter or not, tenant insurance coverage is meant to protect policyholders from a variety of common risks that come along with renting a home.

To learn more about tenant insurance, stick around to make sure you understand what this type of insurance is and how it can protect you moving forward.

What is tenant insurance coverage?

Tenant insurance coverage is a specific type of home insurance intended to meet the individual needs and risks renters living in Hamilton face. While the type of tenant insurance policies included in a standard plan may vary slightly between different providers, for the most part, you'll find the following coverage.

Contents insurance for your personal belongings

Contents coverage is a tenant insurance policy meant to repair or replace your personal belongings if, by chance, they are damaged or stolen from your rental unit as a result of a covered claim. The most common risks included in contents coverage for your personal belongings include fire damage, theft, and vandalism.

With contents coverage, you'll have the option of choosing your own coverage limits, depending on the total value of your personal belongings. So, make sure you have enough coverage to repair or replace your items should anything happen.

Personal liability coverage

Liability insurance is a type of tenant insurance policy that protects policyholders in the event someone injures themselves while on your rental property or third-party property damage is caused. For example, if someone breaks their arm while over at your home, you could be held responsible if a lawsuit is filed against you.

But, with liability coverage, you'll be protected from having to pay out of pocket for any legal fees, medical expenses, settlement costs, and other associated expenses that may result from liability claims that can seriously affect your finances otherwise.

Additional living expenses

Let's say a covered claim, such as a fire ripped through your rental house, rendering the property unsafe to live in. During this time, you'll need to temporarily relocate somewhere else for a restoration company to perform their job, which quickly results in numerous living expenses.

With additional living expenses, tenant insurance protects renters from having to pay for any living expenses they acquire during the period when they are unable to live in their unit. This includes the cost of accommodations, meals, and other additional living expenses that may arise at the time.

Optional tenant insurance policies

Similar to all types of insurance, there are some additional coverage options renters are able to purchase in order to have further protection. Beyond standard tenant insurance in Hamilton, you may want to consider adding these insurance policies to your overall portfolio:

Overland water coverage

As Hamilton is located along the coast of Lake Ontario, overland water damage caused by heavy rainfall and melting snow is a possible risk that most standard tenant insurance coverage options do not account for. By having this insurance policy in place, you can rest assured that your personal property is protected from any type of overland flooding that damages your home.

Sewer back up insurance

Sewer backup insurance is another valuable insurance coverage that many renters often overlook. If you live in a basement suite or older house, sewer backup insurance will cover you in the event your personal property is damaged as a result of a plumbing problem. This insurance is especially important if your landlord does not have a sump pump or backwater valve already installed in your unit.

Identity theft coverage

Let's say someone breaks into your living space while you're away and steals any of your personal identification documents, such as your passport, social security number, banking information, or birth certificate, from your home with the intent of committing a criminal act with your items. As you can imagine, having to pay for new documents along with tracking down your old ones can be costly.

Luckily, with identity theft tenant insurance, you'll be compensated by your insurance company so that you can pay to recover and replace your personal belongings.

High-value contents insurance

Sometimes, standard tenant insurance won't provide enough coverage for your personal items, especially if they have a high market value, which is where high-value contents insurance comes into play. If you own expensive jewellery, musical instruments, artwork, sports equipment, or other high-value items, this policy offers additional protection in case your items are damaged or stolen due to a covered claim.

What will my tenant insurance policy not cover?

While renter's insurance in Canada covers tenants from numerous risks, there are some exclusions you should be aware of:

Water damage

If you forget to turn your bathtub off and if it floods your bathroom, your tenant insurance will not provide coverage, given that the damage was avoidable. Now, let's say one of your neighbours accidentally floods the building, which leads to water damage in your apartment. In this case, you would be covered as risks like these are seen as unexpected.

Criminal or intentional acts

Any criminal activity that leads to damages or injuries will not be covered if you are renting a property from a landlord, regardless of where you live in Canada.

Pest or vermin infestations

Pests such as flies, ants, bed bugs, or other types of infestations are seen as maintenance issues by most insurance companies. Because of this your tenant insurance will not provide coverage, rather you will need to speak with your landlord directly about any damage that may have occurred. They'll also be responsible for hiring a pest control company.

Is Hamilton tenant insurance a legal requirement?

"Is home insurance a legal requirement in Canada?" is a common question among tenants and landlords alike. The truth is, no type of home insurance is available, and it's completely up to you whether or not you decide to purchase tenant insurance for yourself.

Keep in mind that a tenant insurance plan can provide invaluable peace of mind when it comes to the daily risks you face as a renter in Hamilton. And despite the added monthly cost, when compared to the potential costs associated with paying for any property damage or liability lawsuits out of your own pocket, having an insurance policy in place is a no-brainer.

We should also mention that while tenant insurance is not a legal requirement in Canada, some landlords may ask their renters to purchase their own coverage as a condition that is listed in the rental agreement. However, your landlord can only ask you to purchase personal liability coverage. Whether you choose to purchase content coverage will be up to you.

Does my landlord's insurance cover me as a renter?

Unfortunately, no. Landlord's insurance is a special type of homeowners coverage meant to protect those who rent their homes to a third party. With landlord insurance, the physical building is covered in the event it suffers damage, along with any appliances or other items they've provided renters. Another portion of this insurance is that it will protect landlords from personal liability claims that may arise from third-party property damage or injuries that occur on the rental property.

How is renter's insurance coverage priced?

Now that you know what exactly tenant insurance is and how it can benefit you, you're likely wondering how much this type of coverage is going to cost you. While insurance companies have different cost structures, here's a general overview of what types of factors will play a role in how much you pay for protection:

Your coverage limits

This should come as no surprise--the higher your coverage limits are, the more you'll have to pay. This is because you're essentially purchasing more protection, which will come in handy if you ever need to file a claim or have one filed against you.

Where your rental property is located

Where your rental home is located will also play a role in your insurance cost. Insurance companies take into consideration crime rates, the risk of natural disasters, and other factors related to where you live and what type of rental property you live in.

Your credit score

Although not all insurance providers use credit scores to calculate tenant insurance costs, it's still a possibility. In this case, having a higher credit score can come in handy if you want to secure affordable coverage.

If you want to build your credit with KOHO, consider getting a free credit score check before opening a virtual credit card to begin building your financial wellness!

Your claims history

If you've purchased tenant insurance before and filed a claim or multiple, for that matter, insurance companies will view you as more of a risk to insure, which could affect your overall premium.

Are there ways to save on tenant insurance?

If you're looking forward to save on monthly expenses, there are a couple of ways you can save money on your tenant insurance coverage at the time you purchase your policies. Here's what you can do:

Bundle your car insurance and renter's insurance coverage

If you already have car insurance with a provider, you may want to consider bundling your current coverage with your tenant policy. Insurance companies often provide discounts to those who have more than one policy with them.

Ask about discounts

Other discounts available for tenants include the claims-free discount, ones for installing security cameras on your property and more! You'd be surprised at how many discounts you actually qualify for.

Increase your deductible

The deductible is the amount you agree to pay when you file a claim before your insurance kicks in and pays for the rest. By choosing a higher deductible amount, you can potentially lower your monthly premium. Just keep in mind that you should only consider this option if you can afford to pay a more expensive policy deductible if you need to file a claim in the future.

Pay for your insurance coverage upfront

Most insurance providers tack on monthly administration fees when customers pay monthly because they need to pay to process their payments on an ongoing basis. So, if you can comfortably afford to pay for your tenant insurance upfront, you can avoid these administration fees and save on your coverage.

Shop around for quotes

Before opting for any tenant insurance policy, make sure you shop around and get quotes from various providers. If you want to buy tenant insurance online, you can do this by visiting the websites of different companies and filling out the prompts they've listed online. Once completed, you'll get a customized insurance quote based on your individual circumstances.

Keep in mind that the cheapest option for insurance may not always be the best. You'll need to find an affordable policy that doesn't compromise on how much protection you have.

Get competitive rates for tenant insurance with KOHO

With tenant insurance in Hamilton, you can go about your day with peace of mind, knowing you have coverage in place meant to protect your finances and interests.

At KOHO, we help Canadians save up for the unexpected. With high-interest savings accounts and overdraft protection coverage, we're here to make sure you're prepared for whatever life throws your way with aligned plans for spending and saving.

For more information about tenant insurance or other financial topics like the advantages using prepaid cards, take a look through our online information hub.