Tenant Insurance New Brunswick

Renting a home in New Brunswick doesn't come without risks. As a renter, it goes without saying that having a comprehensive tenant insurance policy in place can make a world of difference in the event the unexpected happens by giving you peace of mind that your personal property, interests, and finances are protected.

If you currently live in a rental unit without tenant insurance, stick around to learn more about why you may want to reconsider.

What is tenant insurance coverage in New Brunswick?

Tenant insurance coverage is a type of home insurance tailored to the unique needs and risks renters in New Brunswick face. Within a standard plan, you'll find the following tenant insurance policies:

Personal belongings' coverage (contents coverage)

Personal belongings' insurance, also known as contents coverage, prevents policyholders from having to pay out of pocket in the event their items are damaged or lost by an insured loss listed in their policy. Common risks a basic policy covers include fire damage, unintentional water damage, theft, and vandalism.

Personal liability insurance

Personal liability insurance is the next portion found in a basic tenant insurance plan. Similar to car insurance, personal liability coverage protects you in the event a third party files liability claims against you for bodily injuries or property damage.

Personal liability coverage will cover the cost of medical bills, legal fees, the cost of replacing damaged items, repair costs, and settlement expenses that may arise from the claim.

Additional living expenses insurance coverage

In the event your rented property is damaged due to an insured loss, rendering your rental unit unlivable, the additional living expenses portion of your tenant insurance will cover expenses, including the cost of staying in a hotel room, meals, moving expenses, and other living expenses that arise during the time you are unable to live in your home.

Additional home insurance products for renters in New Brunswick

While tenant insurance protects renters from numerous risks, like any standard insurance policy out there, it won't cover the cost of specific damages unless you purchase additional renter's insurance from an insurance provider.

When getting insurance in New Brunswick for yourself, you may want to consider the following types of insurance below to supplement your standard coverage:

Sewer backup

If you live in a basement suite or older rental unit in New Brunswick, purchasing sewer backup coverage is a good idea. Because there are periods of heavy rainfall throughout the year, it's possible for the municipal plumbing system to become overwhelmed, causing backflow in your property.

When this occurs, it can cause a significant amount of damage to your personal property, which you'll be responsible for paying for without this type of tenant insurance in place.

High-value personal belongings coverage

While standard contents coverage e will cover the costs to repair or replace your damaged or stolen items, it will only do so up to a certain limit, which means your high-value belongings may not have coverage.

Luckily, high-value belongings' coverage takes the costs of your high-ticket items into account, ensuring that you have enough protection against any damage caused.

Identity theft insurance

In the event that your New Brunswick rental home is broken into and your personal identification documents are stolen, identity theft coverage will cover the cost of recovering or replacing your documents. For example, this could include the recovery or replacement of your passport, driver's license, birth certificate, banking info, and other sensitive information.

Overland water damage coverage

As parts of New Brunswick are situated along the coast, the opportunity for overland flooding to occur and cause damage to your personal property is a cause for concern.

This is where overland water insurance comes into play. Should your property be damaged by overland water, this add-on tenant insurance will pay for any expenses incurred, including repairs and replacements.

How is tenant property insurance calculated?

When an insurer calculates renter's insurance in Canada, and within New Brunswick specifically, they'll take into account the following factors before determining how much you'll end up having to pay for your coverage:

Your credit score

As a disclaimer, not all tenant insurance companies look at customers' credit scores. But in the event that they do, you can anticipate higher credit scores to translate into lower premiums.

Fortunately, if you want to build your credit with KOHO, you can do so by opening a virtual credit card and getting a free credit score check before doing so. No matter how long you've been a tenant, having a healthy credit score will benefit you in the long run.

Where your rental home is located

Another factor that will influence how much customers will pay for their tenant insurance premium is where in New Brunswick they live. For example, if you live in Nova Scotia, you can expect to pay a different premium than those living in a more rural area with lower crime rates.

Whether or not you live with pets

Living with furry friends can also impact how much your tenant insurance will cost. Insurance companies will take a look at whether you own a high-risk breed and consider your living situation when determining your overall risk level as a tenant.

The coverage limits you choose for your insurance policy

Opting for higher coverage limits will yield more expensive premiums, given that you'll be more protected from your insurance company if you file any claims in the future, compared to renters who choose lower limits.

Previous tenant insurance claims

Lastly, if you've previously purchased tenant insurance and filed any claims at the time of your renewal, your insurance provider will look at your history before calculating your risk level. Ultimately, the more claims you have on your record, the more of a risk you'll be to insure.

How can I save on my insurance premium?

If you want to save on monthly expenses, use these tips and tricks below to potentially lower your tenant insurance premium:

Bundle your home and auto insurance

Bundle your home and auto insurance with the same insurance company to receive a loyalty discount! Providers appreciate customers who remain loyal to them throughout the years and are more than willing to offer savings to those who do!

Ask for insurance discounts

Beyond a loyalty discount for bundling your policies, other available discounts include remaining claims-free, installing security features on your rental property, and more! Don't hesitate to ask about these savings, as you'll be surprised at how many promotions you'll qualify for!

Increase your deductible

Similar to auto insurance, the deductible is the amount you'll pay out of your own bank account at the time of an insurance claim, before your tenant insurance kicks in to cover the rest. By opting for a higher deductible, you're essentially taking on more responsibility, leading to discounted rates from your provider.

Pay for your insurance coverage upfront

If you're able to, consider paying for your renter's insurance upfront rather than monthly. Most insurance companies add administration fees to monthly payments for customers as they need to process each payment. But, by paying for your tenant insurance upfront, you can avoid these costs and save on your premium.

Is renters insurance legally required in New Brunswick?

So, is home insurance a legal requirement in Canada? The answer is no type of home insurance, whether it be tenant insurance or landlord coverage, is mandatory in Canada or New Brunswick for that matter.

However, your landlord may request that you purchase tenant insurance as a condition that is listed in your rental unit agreement. So keep this in mind when you're reading the details of your contract.

Does my landlord's insurance cover me?

Contrary to popular belief, your landlord's insurance does not extend to you as a renter of the unit. While tenant insurance is meant to protect those who rent, landlord coverage ensures that the physical structure of the rental is covered in the event damage occurs and repairs are needed. It also provides landlords with liability insurance to ensure they are not held legally responsible for any injuries or property damage that occurs.

Actual cash value vs replacement cost

Upon filing an insurance claim with your provider, your insurance company will use two different methods to determine how much money you receive as compensation:

Actual cash value (ACV)

The ACV method requires your provider to consider the worth of your items at the time they were stolen or damaged, as well as any depreciation, when assessing how much compensation you will receive.

Replacement cost

In contrast, the replacement cost method takes into account how much your items are worth at the time that it was stolen by comparing it to other similar items currently in the market, without accounting for any depreciation when calculating the money you are owed.

I live with roommates, do we all need insurance?

The short answer is yes. If you live with another person or multiple roommates, ensuring that you each have a separate insurance plan in place is highly recommended. In the event an unexpected event occurs, only those with insurance will be protected. This includes any liabilities that may occur on the premises of the rental property.

So that you all have peace of mind and the right safety blankets in place, make sure you each have your own tenant policy in place.

What is not covered by tenant insurance?

So, now that you have all the details about what is covered by tenant insurance let's take a closer look at what isn't covered by this type of home insurance:

Water damage

As we briefly mentioned, standard water damage that occurs in your rental is typically not covered under a renter's policy unless the damage occurred as a result of an unexpected event. For example, if you leave the tap on, and it floods your apartment, you won't receive compensation.

Pest infestations

Pest infestations of any kind, such as bed bugs, rats, ants, cockroaches, or other types of animals like squirrels or raccoons, are considered a maintenance issue rather than an unexpected event, given that these instances are technically preventable.

Because of this, any infestations will, therefore, be the responsibility of your landlord to handle. So, in the event that an infestation occurs in your rental, reach out to your landlord as quickly as possible to prevent any further damage from occurring.

Criminal activity or intentional acts

This one should not come as a surprise. If you are conducting any illegal activity within your rental or intentionally causing harm or damage to property, your insurance will not provide you with any coverage.

Insurance companies always do their due diligence when it comes to investigating the circumstances of all insurance claims. So, if you think you can get away with insurance fraud, think again--your insurance company is already a step ahead of you!

Get affordable tenant insurance policies with KOHO

With a comprehensive tenant insurance policy from KOHO in place, you can save up for the unexpected and protect your current finances from suffering a significant hit.

KOHO is with you every step of the way when it comes to finalizing your plans for spending and saving. To secure your financial future, consider opening a high-interest savings account with overdraft protection coverage for those months when money is scarcer than normal.

And if you want to improve your financial knowledge in general, like brushing up on the advantages of using prepaid cards or other topics, check out our free online information hub that you can access anytime and anywhere!