Home insurance is not just for homeowners.
Getting the right insurance will save your time and hair
Are you renting? If so, do you have tenant insurance? Many people don't realize they can purchase insurance to cover their possessions when they rent a home or apartment.
A 2018 survey showed that nearly one-third of Canadians said they didn't have tenant insurance because they thought they were covered by their landlord's or roommate's policy. That's unfortunately not true.
The same goes for property owners who decide to start renting their property to others. Property owners forget that their regular home insurance, most of the time, will not cover their home when they start using it as a rental property. Therefore, everyone needs to be well informed about the insurance that best fits their specific necessities.
Home insurance Packages
Standard Home Insurance
A standard homeowners insurance policy provides financial coverage for liability, property and contents. Standard home insurance will protect both the property and its content from all perils that are specifically stated under the insurance policy. This means that your property and contents won't be covered if damaged by a peril not named under your policy.
- Provides liability coverage- for instance, it provides financial support to cover medical bills and legal expenses if anyone gets injured within the vicinity of your property.
- For the compensation of the damage or loss of personal belonging within the structure of your property. Moreover, you may add-on endorsement or purchase extended policy coverage for expensive essentials like cars and jewelry.
- It might also cover the compensation or replacement of other structures within your building structure or home compound, For instance, hot water baths, swimming pools, trampolines, and many more.
- Meanwhile, your property is being repaired after an incident a standard might cover relocation and other additional expenses like restaurant meals, hotel rooms, medical expenses
- Legal Protection supposed anyone had sued you upon damaging private property unintentionally.
Comprehensive homeowners insurance
Comprehensive homeowners is an advanced regular home insurance policy coverage for every loss or damage of your home or building structure and other structures and personal liability against all perils unless excluded in the policy contract. This coverage is better than standard home insurance as you will be covered against almost all perils and not just the ones stated on a policy. These perils might include:
- Volcanic eruption
- Flood and sewer breakout
- Windstorm And hail storm
- Fire and smoke
- Theft and vandalism
- Accidental damage and many more
Broad home insurance
Broad home insurance is a combination of both standard home insurance and comprehensive home insurance. For example, broad home insurance will cover against all perils or risks when it comes to property coverage unless they are specifically excluded from the policy. On the other hand, just like standard home insurance, the contents under a broad insurance policy are only covered against the named, or in other words, specifically stated perils under the policy.
Would your regular homeowners' insurance cover you if you start renting out your property? Typically, a standard homeowner insurance will not cover your property when you rent out your space to other individuals. Renting out space makes it a business activity that might not be included under your protection clause policy. Nevertheless, including business activity increases the risk, attracting more coverage, making it challenging to provide sufficient financial protection. Suppose you intend to rent out space for a long-term period. In that case, you will need Landlord insurance or a Rental Dwelling Insurance policy for increased protection against risks/perils associated with the business.
Rental Dwelling Insurance
Rental Dwelling Insurance provides policy coverage for the rental dweller's property in the event of loss, damage and accident, and it might also be extended to cover liability. For instance, Steve had a job transfer to another city, and he decided to rent his old house to other people for a year or so before selling it. He got another house in the new town and decided to extend this home insurance liability coverage to protect his old house together with rental dweller insurance.
- damage of property caused by vandalism, fire, wind and other risks covered by the policy.
- Personal Property the renter leaves on the property.
- Can be extended to cover liability.
- The tenant's personal belongings.
- Often, damage caused by the following perils won't be covered: earthquakes, landslides, volcanic, tornadoes, riots and floods.
- Damages caused by birds, pests, and bed bugs.
- Nuclear hazard.
- Underground water or continuous damage caused by poor maintenance of the building.
- Vehicles damage or accidents.
Tenant insurance is also referred to as Renters insurance. The tenant insurance policy covers property against loss, damage, accidents and the policyholder's liability. If you live in a condominium, apartment, or rental unit, you should get tenant insurance. Usually, landlords will require their new renters to obtain tenants' insurance before letting them sign a lease contract.
- Relocation bill and extra expenses when an incident prevents renters from living in the property. This might include the hotel bills, groceries, and many more until the room under maintenance is ready to be occupied.
- It also covers the tenants' possessions that have been destroyed by fire, water, vandalism and other covered perils. It might also cover tenants' property while they are not at home.
- Provides liability protection to renters from incidents occurring on their premises. For instance, it will protect you from becoming liable if one of your guests gets injured while in your apartment or other property where you are the renter.
Since tenants' insurance only covers personal liability and possessions, most of the time, they will be protected if they are included in the policy. However, the tenants' insurance will not cover your content if it falls out of the policy contract, for instance:
- Some expensive personal belongings exceeding your policy limits like jewelry and other special valuables might not be protected. When it comes to special valuables like jewelry, you will need to set a more specific coverage.
- The upgrades you might have installed in your apartments that weren't included in the policy contract.
- You might not be covered if an uncovered peril caused the damage to your personal property on your policy or because of poor maintenance of the apartment or the building.
Vacant Home Insurance
An unoccupied home is more susceptible to risk, and therefore you will need to make sure to get the right coverage for it. Unoccupied or vacant home insurance is special policy protection purchased to cover for loss or damage of a vacant home or rental unit. Some of the situations in which you will want to get vacant home insurance include:
- If You are travelling for a great part of the year.
- You are in between finding a tenant to occupy the apartment.
- If You are going to be admitted to the hospital for an extended period.
- If You shift or relocate to another province and leave property behind.
Whether you live in your own home or rented space, or apartment, you should choose the best and appropriate type of home insurance policy. Therefore it would help to consult first from your insurer broker which kind of home insurance is suitable for your needs. If you plan to start renting a new place, you should consider tenant insurance to protect your personal property. If you plan to rent your dwelling space, a condo, or an apartment, you can get rental dwelling insurance. Finally, if you have an unoccupied property, you should get vacant home insurance.