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With Lake Ontario at your doorstep and downtown Toronto blocks away, living in Mississauga offers numerous benefits to those in the area. However, as a renter, Mississauga comes with some unique risks that tenants need to prepare for and protect themselves from.
Luckily, with the right tenant insurance policy in place, you can have peace of mind knowing your personal belongings, finances, and interests are protected against the unexpected. Whether you're new to renting or not, knowing how Mississauga tenant insurance can benefit you and what it entails can help you make an informed decision about whether getting insurance is worth the investment.
So, if you're not sure whether you need tenant insurance, stick around to learn more about this type of coverage!
What is tenant insurance coverage?
Tenant insurance in Mississauga is a type of home insurance designed specifically with the needs of renters in mind. Within a standard renter's insurance plan, you'll find the following policies:
Personal liability coverage
Did you know that if someone injures themselves on your rental property or you accidentally cause damage to someone else's property, you could be held liable if a third-party claim for damages is filed against you? In a scenario like this, without renters insurance in place, you'd be responsible for paying any legal fees, medical costs, repairs, and other associated expenses that could arise from the claim, which can seriously impact your finances.
This is where the personal liability portion of your renters insurance comes into play. With personal liability coverage, you'll be protected from any injuries or property damage that occurs on your rented property by covering all of the costs mentioned above up to your policy limits.
Contents coverage
The next portion of Mississauga tenant insurance is contents coverage. With contents insurance, you'll receive compensation from your insurance company in the event your personal belongings are unexpectedly damaged or stolen as a result of a covered claim that is listed in your policy. Typical events covered by this type of insurance include break-ins, fire damage, vandalism, and more, depending on the specifics of your individual policy.
Your insurance company will use a replacement cost or actual cash value method to reimburse you for the loss of your items.
Additional living expenses
Now, let's say that unexpected damage happens in your rental unit, rendering your living space unsafe to live in. In this case, your additional living expenses coverage will cover the costs associated with your accommodations during this time, meals, and other costs that may pop up while you are unable to live in your home.
Optional tenant insurance in Mississauga
Similar to all types of insurance available to Canadians, renters also have the choice of purchasing additional coverage options that can provide further protection beyond their standard liability coverage, additional living expenses, and content insurance, including the following:
Overland flooding insurance
Most standard policies do not provide coverage for water damage. Because Mississauga is located by a Great Lake, adding overland flooding tenant insurance may be worth looking into. This tenant insurance protects policyholders if overland flooding in their area causes water damage to their rental home. This includes flooding from nearby lakes, rivers, or snow caps.
Identity theft coverage
Other optional tenant insurance covers instances involving identity theft. For example, if someone breaks into your home and steals your personal property, such as your passport, banking documents, birth certificate, or other important personal identification, with the intent of committing a criminal act, your insurance provider will compensate you for expenses associated with recovering or replacing your documents.
High-value items insurance
If you own high-value items such as artwork, jewellery, musical instruments, luxury clothing and bags, or other personal property, standard tenant insurance in Mississauga may not be enough to cover you in the event your items are damaged or stolen.
With high-value items insurance, you can purchase additional protection for your personal belongings to ensure you'll be fully compensated in the event you need to file a claim with your provider following an unexpected insured event.
Sewer backup insurance
Another Mississauga tenant insurance policy you may want to consider, especially if you live in an older home or basement suite, is sewer backup insurance. Whether it be due to heavy rainfall, problems with the municipal sewage system, or other plumbing problems, sewage backup into your home can cause a world of issues. But, with this renters insurance, you'll have the coverage you need if you need to make a claim for any damages or losses that arise from this type of issue.
What renters insurance doesn't cover
Renter's insurance in Canada offers invaluable protection to renters. However, there are some things that tenant insurance does not cover, including the following:
Criminal or intentional acts of harm
This one shouldn't come as a surprise to you. Any criminal or intentional acts of harm caused to a third party, their property, your personal belongings, or the rental unit itself will not be covered under your tenant insurance.
Water damage
Unless the water damage occurred as a result of an unexpected event that was unpreventable, this type of damage is not typically covered by renters insurance. For example, if you accidentally leave a faucet running in your home and it floods your apartment, your condo tenant insurance will not provide coverage. Another uninsured event will be if a pipe or other plumbing problem occurs as a result of a maintenance issue that was ignored.
Pest infestations
Lastly, standard Mississauga tenant insurance will also not cover any type of pest infestation. This includes bed bugs, ants, flies, rats, or other vermin. Technically, because these are preventable, any infestations are seen as a maintenance issue and are, therefore, your landlord's responsibility.
How much are tenant insurance policies in Mississauga?
While insurance costs can vary based on your unique circumstances, you can anticipate paying on average $200 a year for tenant insurance in Mississauga. This equals out to approximately $16 monthly.
Is tenant insurance mandatory?
Is home insurance a legal requirement in Canada? The short answer is no. However, your landlord could request that you purchase your own insurance as a condition listed in your lease agreement. Keep in mind, however, that your landlord can only request that you purchase liability coverage. Whether you choose to purchase contents coverage is up to you.
Additionally, your landlord can't request that you purchase tenant insurance once you've signed your rental contract if it was not already listed in the agreement.
Is landlord and tenant insurance in Mississauga the same thing?
No, renter's insurance and landlord's insurance are not the same thing. Unlike landlord's insurance, tenant insurance is meant to protect renters who rent a property from a landlord by providing contents coverage, personal liability insurance, and additional living expenses.
On the other hand, landlord coverage is meant to protect those who rent their home to a third party. Within this type of coverage, the physical structure of the rental house is protected against damages and losses that may occur. Additionally, landlord insurance also offers property owners liability protection in the event someone injures themselves on the premises or property damage occurs.
How are tenant insurance premiums calculated?
Now, you're probably wondering how insurance costs for tenant insurance are calculated. Although each provider may have a different pricing scale, most companies tend to use the following to calculate a tenant insurance cost:
Your credit score
Not all, but some insurance providers use customer credit scores to calculate what they will need to pay for coverage. In this case, having a higher credit rating is beneficial and can help you secure a lower rate for insurance.
Looking to build your credit with KOHO? Get a free credit score check before opening a virtual credit card to start your credit journey today!
Your previous claims history
If you've previously had tenant insurance in place, your provider will take a look at your claims history. The more claims on your record, the more of a risk you are to insure, meaning you'll likely have to pay a bit more than the average renter who has a claims-free history.
Where your rental property is located in Mississauga
Mississauga and surrounding neighbourhoods all have unique risks that insurance companies will need to take into account when calculating costs. Whether it be crime rates, how close you are to the water, or other factors, where you live and the type of property you live on can affect your premiums.
The types of tenant insurance policies you choose
If you do decide to add additional coverage options to your standard tenant insurance policy, you'll need to pay more for this extra coverage.
Whether you live with pets or not
Depending on the type of pet you own, your insurance company may use this as a factor when determining how much you'll need to pay for tenant insurance. For example, if you own a high-risk breed, you may be required to purchase higher limits for personal liability protection, which will cost you more money.
How can I save on my renter's insurance policy?
Whether you're trying to save on monthly expenses or finalize your plans for spending and saving, adding tenant insurance to your monthly expenses may appear like an unnecessary expense.
Luckily, there are ways you can save money on your tenant insurance at the time you purchase your coverage. Take a look at some of our best-kept tips and tricks below so you can get the best value for your buck:
Bundle your home and auto insurance with your tenant insurance provider
If you already have auto insurance, pet insurance, or other types of coverage with a provider, consider bundling your renters insurance with your existing policies. Most insurance companies offer a discount to customers who have more than one policy as a way of saying thanks for your business.
An added bonus to bundling your renters insurance with other coverage options is that you'll be able to easily manage your policies and speak with the same provider if you have any concerns or questions.
Ask about other insurance discounts
Beyond discounts for having more than one type of insurance coverage with the same company, there are other discounts that you may qualify for. Common discounts include installing a home security system, remaining claims free, and more. So, don't be afraid to ask your agent whether there are any savings or promotional deals when you purchase your own policy in the future.
Pay for your insurance upfront instead of monthly
If you're able to comfortably afford to do so, you may want to pay for your insurance upfront rather than on a monthly basis. An insurance business typically adds a fee to those who pay monthly as they will need to process your payment each month, which costs them money to do so.
So, by paying for your insurance coverage upfront, you can essentially avoid these added fees and save on extra costs.
Increase your deductible amount
The deductible is the amount you agree to pay out of pocket when you file an insurance claim before your coverage will kick in and pay for the rest. By opting for a higher deductible, you're essentially taking on more of a financial burden, which reduces the amount your provider will need to pay at the time a claim is filed, which can help you lower your cost for insurance.
Just keep in mind that this isn't always the best option for everyone. Only those who are willing to and able to afford the financial burden should consider choosing a higher deductible amount if they need to file a claim.
Consider your coverage limits
The higher your coverage limits, the more you'll end up paying. At the time you buy insurance, consider how much your items are worth and whether you have any valuable items in your inventory. This will help you determine what limits will work best for you and help you avoid paying for added coverage you won't necessarily need.
Shop around with different insurance companies
Don't forget to compare quotes from different providers before choosing a company to insure you. This will also compare coverage and costs before finding the right price and best value out there.
Keep in mind that sometimes, the best deal isn't always the ideal option for your needs. The goal is to try and find affordable coverage that doesn't compromise the level of protection offered by your provider.
How do I file an insurance claim?
In the event you need to file a claim, there are a couple of steps you need to take to ensure the process runs as smoothly as possible. Here's what you need to do.
Call the police: If a crime or injuries have occurred, you'll need to call law enforcement to the scene. Don't forget to ask for a copy of the police report as your provider will need this information for their investigation.
Document evidence: Take as many pictures and videos of the incident at hand. The more evidence you provide, the easier it will be for an adjuster to move your claim along.
Call your insurance provider: It's now time to call your provider. Tell them that you would like to file a claim. At this time, an insurance agent will ask you a series of questions about what happened, so be prepared to speak on the phone for a while.
Get a claim number and adjuster: Once you've spoken to an agent, they'll assign an adjuster to your file, who will be your point of contact moving forward. You'll want to communicate with them as often as possible to ensure your file is moving towards compensation.
Investigation: Your adjuster will review your file and evidence. They may also conduct an investigation of their own to ensure that no insurance fraud is taking place.
Final verdict: Once the investigation has come to an end, your adjuster will make a decision on your claim and determine whether you are entitled to compensation. At this time, they'll send you an offer. Keep in mind that you don't have to accept the first offer if you believe it is unfair--there is always room to negotiate.
Get reimbursed: Once you've accepted the offer, you'll then be reimbursed for damages.
Get an affordable tenant insurance policy with KOHO
Knowing you have the right coverage in place can help renters have peace of mind, knowing they're protected in case the unexpected occurs.
At KOHO, we want to make sure Canadians like you have the right coverage with affordable plans we can tailor to your unique needs. To help you save for the unexpected, we also offer high-interest savings accounts and overdraft protection coverage for those months when your finances get a little tight.
You can also check out other financial resources for topics like the advantages of using prepaid cards and more right from your device!
About the author
Niki is a communications specialist with years of experience as a freelance and marketing agency content writer. With a knack for storytelling, Niki enjoys working with businesses from diverse industries to craft engaging content that resonates with target audiences worldwide.
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