Tenant insurance Nova Scotia

Living in a rented home in Nova Scotia doesn't come without risks, which is why getting insurance as a tenant from KOHO can help protect your finances and interests in the event something unexpected happens.

If you're considering tenant insurance for yourself but aren't sure what it entails, stick around to learn more.

What is tenant insurance coverage?

Tenant insurance is a specific type of home insurance intended to meet the needs of renters in Canada. With standard renters insurance coverage, you can anticipate to find the following policies:

Personal liability coverage

Personal liability coverage is often associated with auto insurance. However, you'll find it as a portion of your tenant insurance. So, what exactly is liability coverage? Let's say you're hosting a gathering at your rented home with all of your friends when someone accidentally hurts themselves by slipping and falling. Legally, that person is able to sue you for damages and if you are found liable, it can cost hundreds to thousands of dollars.

This is where personal liability coverage comes into play. With personal liability, even if you are found legally liable, your finances will be protected by covering the cost of medical expenses, legal fees, settlement costs, and other expenses that may arise as a result of the lawsuit.

Personal liability will also protect you in the event you are found legally liable for any property damage to a third party.

Personal property coverage

Think about your most valued possessions. Now, think about how much it would cost you to repair or replace your personal belongings if they were damaged or stolen from your rented property. Without personal property insurance, also known as contents coverage, you'd be left to pay for these costs out of your own bank account.

However, with the contents coverage portion of your tenant insurance, you'll have the financial assistance needed for repairs or replacements of your personal belongings that are damaged or lost as a result of a covered event. Common perils included in contents coverage include theft, vandalism, and fire damage. Again, you'll be able to choose your policy limits, so make sure you have enough coverage.

Keep in mind that contents coverage requires policyholders to pay a deductible amount before their insurance company will pay for the rest.

Additional living expenses

Now, let's say a fire or other covered peril occurs in your apartment building that makes your living space uninhabitable. During the time you're unable to live there, you'll likely need to pay for accommodations, meals, and additional costs that can add up over time.

But, with additional living expenses insurance, your hotel costs, meals, and other expenses will be compensated under your insurance policy.

Optional tenant insurance in Nova Scotia

Beyond a standard tenant insurance policy in Nova Scotia, renters may want to purchase additional coverage options depending on their unique needs. For added protection, you may want to consider asking your insurance company about the following tenant insurance policies:

High-value items insurance

High-value items like musical instruments, artwork, jewellery, luxury clothing, and more can be expensive to repair and replace. Because of this, most insurance companies won't provide coverage beyond a certain limit, which is where high-value items coverage comes in.

With this insurance policy, you can have peace of mind knowing your expensive personal items will be insured by your insurance company as this fills in any gaps that could be there with basic insurance.

Overland water coverage

If you live near a natural body of water like the Nova Scotia coast, lakes, or rivers, overland water coverage may benefit you. This tenant insurance policy offers protection in the event your rental property is flooded as a result of overland waterways.

Sewer backup coverage

Following periods of heavy rainfall, municipal sewage systems can become overwhelmed, leading to backflow in homes, which can cause a significant amount of property damage.

With sewer backup renters insurance, you'll be covered against sewage backups that occur as a result of rainfall, clogs, or other plumbing problems, which can be beneficial for those living in basement suits.

Identity theft insurance

Imagine someone breaks into your home and steals your driver's licence, passport, banking documents, and other personal identification information with the intent of committing a criminal act, using said information.

With identity theft renters insurance, you'll be compensated for the cost of replacing your documents and potentially recovering your stolen ones.

What is the difference between landlord insurance and tenant insurance?

A big misconception about renter's insurance in Canada is that it's not needed because your landlord has coverage when this is further from the case. So, what exactly is the difference between these types of insurance policies?

The biggest difference you should know about is that landlords insurance is who the insurance benefits. Landlord insurance is meant to provide coverage for the physical structure of the rental unit, appliances, and other personal belongings of the landlord. It also ensures that they cannot be held legally responsible for any injuries or property damage that occurs. It does not cover the personal property of the tenant.

In contrast, tenant insurance is meant to bridge this gap and offer protection to renters for any repairs, replacements, or expenses that arise from liability claims.

Is home insurance a legal requirement in Canada?

So, you're probably wondering, is home insurance a legal requirement in Canada? Unlike other types of coverage, home insurance is not mandatory. The same goes for tenant insurance.

That said, your landlord may ask you to purchase a tenant insurance policy as a requirement in the lease agreement they offer you when you're applying for a new rental space in Nova Scotia.

How much does tenant insurance cost in Nova Scotia?

The average cost of a tenant insurance policy in Nova Scotia is between $15 to $40 a month, which averages out to $180 to $480 annually. Keep in mind that what you pay for your tenant insurance will vary depending on your unique circumstances.

How is the cost of tenant insurance calculated?

If you're finalizing your plans for spending and saving while you save up for the unexpected, naturally, you may be wondering how tenant insurance premiums are calculated. While each insurance company in Nova Scotia is different, here is a general guideline for some of the factors that will influence your premium:

Where your rental home is located and the type of rental you live in

A big factor that plays into your renters insurance premium is going to be where in Nova Scotia your rental is located and the type of property you live in. The fact of the matter is that certain areas in the province are riskier to live in than others, which can play into how your insurance provider calculates your costs.

Additionally, if you live in an older home, you could pay more depending on the overall condition of the property.

The value of your personal belongings

The value of all your belongings also matters when it comes to renters insurance costs. The more expensive your items are, the more coverage you'll need to ensure you're sufficiently protected, should you need to file an insurance claim.

Your credit score

Disclaimer: not all providers will use your credit score when calculating your tenant insurance premiums. But, if they do, it goes without saying that a higher credit score will yield more affordable coverage options.

If you want to build your credit with KOHO, consider opening a virtual credit card following a free credit score check.

Your claims history

Most insurance companies will also use your claims history when determining how much your tenant insurance will be. Having no previous claims will work in your favour, compared to renters who have multiple claims on their record.

Whether you live with pets

Do you live with furry friends? If so, you may end up paying more for tenant insurance policy, especially if you own a high-risk breed.

How to save on tenant insurance coverage

If you want to save on monthly expenses and lower your tenant insurance premium, consider the following tricks we've listed below:

Consider your policy limits

Policyholders are able to choose their coverage limits when it comes to tenant insurance. For example, opting for a higher liability limit will result in you having a higher premium than choosing a lower limit of protection.

When considering this, keep in mind your unique circumstances and find a happy balance between protection and savings.

Increase your deductible

Another way to save on your tenant insurance premium is to increase your deductible. Remember, the deductible is the amount you're responsible for paying out of pocket before your insurance benefits kick into gear.

By opting for a higher deductible, you're essentially being held more responsible for impending charges that result from a tenant insurance claim, which means your insurance provider pays less. So, if you want to save on your tenant insurance protection, choosing a higher deductible can help you save on your premium. However, you should only consider this as an option if you can comfortably afford to pay more in the event of a claim.

Ask about discounts

Believe it or not, there are numerous discounts you may be eligible for that can help you save on your tenant insurance. Common ones include installing safety features in your home and the claims-free discount. So, don't hesitate to ask your insurance provider about available savings you may qualify for when purchasing your tenant insurance for the first time!

Shop around

Don't forget to shop around! Rather than going with the first insurance quote you're offered, do a bit of research and obtain multiple tenant insurance quotes from providers in Nova Scotia. This will help you compare inclusions and exclusions, as well as premiums.

Keep in mind that the most affordable option isn't always the best one. The key with any type of insurance is to find ones that are affordable, but don't compromise on your level of protection.

Bundle your insurance policies

Another way to save on tenant insurance is to bundle your insurance policies! Companies enjoy working with loyal customers. If you have car insurance and other types of policies already, you could receive a discount from your insurance company for bundling your policies with them.

An added bonus to bundling your insurance is that it will be easier to manage over the years.

Pay off your premium all at once

If you can afford to do so, consider paying off your tenant insurance in one go, rather than on a monthly basis. Insurance providers typically tack on administration fees to those who pay on a monthly basis as they need to process everyone's payments.

But, by paying for your tenant insurance upfront, you can essentially avoid this added expense and save a bit of money at the end of the day.

Get affordable renters insurance with KOHO

Evidently, having renters insurance is necessary if you're renting a home from a landlord in Nova Scotia or the rest of Canada.

For affordable home insurance, look no further than KOHO. We're your go-to when it comes to having insurance coverage you can feel confident in and saving for the future.

For more information on the advantages using prepaid cards, overdraft protection coverage, or high-interest savings accounts, check out our information hub for useful resources that can help you maintain and progress your financial wellness.