Tenant Insurance Calgary

Life throws unexpected curveballs when you least expect it. And as a renter in Calgary, those curveballs can seriously impact your finances without the proper coverage in place. Whether it's your first time moving out on your own or you've been renting a home in Calgary for a while, having a renters insurance policy in place can help give you peace of mind, knowing that your savings and interests are protected.

Stick around to learn more about whether having tenant insurance in Calgary and whether this type of insurance coverage is worth the investment!

What is tenant insurance coverage?

Think of tenant insurance in Calgary a branch of home insurance, specifically tailored to the unique needs of those who live in a rental property, rather than own their home. Within a standard renters insurance plan, you'll find the following types of insurance:

Personal belongings contents coverage

Think of all your personal belongings and how much it would cost out of pocket for you to repair or replace these items if they were damaged or stolen from your rental unit. Depending on how much stuff you own, you could be looking at a hefty bill, which would undoubtedly impact your overall financial wellness.

This is where contents coverage for your personal belongings comes into play. This portion of your tenant insurance protects your items in the event they are damaged by an insured event. Common perils included in a standard tenant insurance plan include fire, vandalism, theft, and more, depending on your insurance provider.

So, let's say your rental property is broken into, and your items are stolen. You can then file a tenant insurance claim and receive compensation to replace your belongings up to your policy limits, saving you the stress of having to pay yourself.

Personal liability coverage

The next section of a renters insurance policy is personal liability coverage. Let's say someone suffers a bodily injury on your rental property or some type of property damage occurs; without tenant insurance, you can technically be held legally responsible. As a result, if someone files a claim against you, you'd be responsible for paying any costs associated with said claim.

But, with personal liability protection, you would be covered against third-party claims involving bodily injury or damage to property. In other words, this portion of your tenant policy will pay for medical bills, legal fees, repairs, replacements, and settlement funds in the event a lawsuit is filed against you up to your liability protection coverage limits.

Additional living expenses coverage

Now, the final portion of Calgary renters insurance is additional living expenses coverage. For example, in the event that your rental home is damaged due to an insured event, such as a fire, and it is no longer safe to live in, your insurance policy will kick in.

Additional living expenses such as accommodations, meals, and other expenses you acquire during the time that you are unable to live in your home.

Optional Calgary tenant insurance policies

In addition to a standard tenant insurance policy, Calgary residents are able to purchase additional coverage options to supplement their insurance for further protection. Beyond this basic tenant insurance in Calgary, you may want to consider the following:

Identity theft renters insurance

Imagine a scenario where you leave your home for a week or two for vacation. Upon returning to your rental unit, you notice that it's been broken into. When looking further into what's been taken, you come to realize they've stolen your bank information, birth certificate, and social security card.

Cue identity theft tenant insurance coverage. This insurance provides policyholders with the financial compensation needed to recover or replace their personal identification information if it is stolen from their unit with the intention of committing criminal activities, such as credit card fraud and more.

Sewer backup coverage

Another optional tenant insurance policy is sewer backup coverage. This insurance is especially helpful for those living in basement suites, especially in areas that receive a lot of heavy rainfall throughout the year.

Sewer backup insurance protects renters in the event their unit is flooded with sewage water as a result of heavy rainfall, a clog, or other plumbing problems. Sewage-related water damage can create a world of problems in your home, but with this type of tenant insurance policy, you can rest assured that you'll be able to handle any plumbing-related issue that comes your way.

Overland flooding insurance

As Calgary is situated along a river bank with a natural lake nearby, the opportunity for overland flooding to occur is greater than for residents living in other areas of Alberta. With overland tenant insurance, you'll have coverage if your rental home is damaged and your personal items are ruined by flooding caused by a natural waterway near your property.

High-value personal belongings coverage

For those in Calgary who have personal items that have a high-ticket value, such as jewellery, clothing, musical instruments, artwork, sporting equipment, electronic devices, and more, high-value tenant insurance is something you'll want to consider.

Most standard insurance policies provide coverage up to a certain limit. If, by chance, the total cost of your personal belongings exceeds this amount, you'd unfortunately be responsible for paying the rest. But, with high-value insurance, your expensive items will be fully covered, meaning you'll be compensated in the event they are damaged, lost, or stolen from your property.

What does a tenant insurance policy not cover?

It's important to remember that, like any insurance, there will be limitations to your tenant insurance in Calgary. So, what can you not expect your insurance company to cover?

Water damage

The first exclusion from all types of tenant insurance in Calgary is water damage, which it deems preventable. For example, if you accidentally leave the sink running and it overflows, leading to water damage in your bathroom, your insurance provider will not provide coverage. Generally speaking, you may be able to get coverage for water damage that is seen as unintentional damage. We recommend speaking with your insurance company directly for more information.

Pest infestations

Another incident that you will not find in typical tenant insurance in Calgary is pest infestation. Whether it be rats, bed bugs, ants, or other types of bugs and vermin, your tenant insurance coverage will not extend to this type of damage.

So, why exactly is this the case? Essentially, your tenant insurance won't cover bed bugs or other pest infestations because they are technically preventable and tied to property maintenance. And because it's seen as a maintenance issue, any repairs needed will be the responsibility of the property owner, AKA your landlord.

Therefore, if you suspect that you have a fest infestation in your Calgary rental home, reach out to your landlord as quickly as possible to prevent further damage to your personal property.

Criminal or intentional acts

This one shouldn't come as a surprise to you. Your tenant insurance will not provide coverage for incidents that are intentional or result from criminal activity. For example, if you intentionally start a fire in your unit or flood your bathroom that ruins all your belongings as a way to get compensation, you'll be out of luck.

Remember that insurance companies do their due diligence when it comes to investigating claims. Therefore, any actions that are deemed suspicious are likely to be denied, leaving you to pay for the damage all on your own.

Is Calgary tenant insurance mandatory?

So, is home insurance mandatory in Canada? To get a Calgary rental, do you need to make this purchase? The short answer is no. No type of home insurance is a legal requirement in Canada, regardless of which province or territory you live in. That said, many landlords request that you purchase tenant insurance by putting it as a condition in your rental agreement.

One thing to clarify is that your landlord is only able to request that you purchase liability protection, which means you'll have the option of purchasing contents coverage or not. Additionally, if you have already signed your lease agreement and there is no clause that states that tenant insurance is required, your landlord can't ask you after the fact to purchase your own coverage.

How is renters insurance in Calgary calculated?

Getting insurance comes with a price tag. So, how much is renter's insurance in Canada, and how are premiums calculated? Like all insurance, there are a couple of factors that your insurance provider will consider while you are getting a quote.

Take a closer look at what companies factor in when calculating a tenant insurance cost for customers:

Where your rental is located

The location of your rental property will have a significant impact on the cost of your tenant insurance. Some neighbourhoods are connected with more criminal activity than others. Others may be more vulnerable to flooding and bad weather. These are the factors that an insurer will consider when determining your renter insurance premium.

Whether you live with pets

Whether or not you own animals can affect how much you pay for renters insurance. As an example, owning a high-risk breed may require more expensive coverage in order to guarantee that you are insured in the event that your dog bites someone on your premises.

Your insurance claims history

Next up is your claim history. If you've previously bought renters insurance and submitted a claim, it may affect your insurance premium. Essentially, the more claims you file, the more of a risk an insurer sees you as, which can result in higher premiums.

Your credit score

Your credit score is yet another factor that insurance companies will certainly consider. But don't panic---not all companies conduct credit score checks on potential customers.

Of course, having a better credit rating will result in a lower rate. So, if you're looking to build credit with KOHO, think about getting a free credit score check before applying for a virtual credit card to get started on your credit journey today.

The coverage limits you have

The insurance limits you choose will also impact how much you pay for your overall premium. For example, if you choose higher coverage limits, you'll need to pay more, given that you'll have more protection in the event you need to file a claim.

Does landlord insurance protect renters?

Unfortunately, landlord insurance does not protect renters. Rather, it is meant to protect the physical structure of the home, any items your landlord has provided you, and any detached structures on the rental property.

Another portion of landlord insurance is liability coverage. Similar to how it is in a standard tenant insurance policy, the liability section protects landlords if anyone is injured on the property or if any damage to third-party property occurs.

If I live with roommates, do we all need separate insurance?

Yes, if you live with roommates, you will each need to have a separate policy if you want to ensure that you are all protected. For example, if someone injures themselves on the property, you could all be held legally responsible. And without coverage in place, only those with tenant insurance would have their interests protected.

The same goes for damage. For example, if a fire rips through your interior and damages everyone's belongings, tenant insurance will only replace the items belonging to the policyholder.

When in doubt, ensuring that all individuals living in the rental are sufficiently protected will pay off in the long run in the event something happens.

How can I save on my insurance costs?

If you're looking for ways to save on monthly expenses as you're finalizing your plans for spending and saving, we're here to tell you that there are, in fact ways that you can save on your insurance premium. Here are a couple of tips and tricks you can use when looking for tenant insurance coverage in Calgary:

Bundle your tenant insurance with car insurance

If you already have auto insurance coverage, you may want to consider bundling it with your tenant insurance! When you bundle your car insurance and renters coverage with the same provider, they often give a discount for staying loyal to the company.

An added bonus of bundling your policies is that it will be easier to manage throughout the years, and you won't have to speak with different companies each time you have a question about your coverage or need to file an insurance claim.

Ask about discounts for insurance in Calgary

Another great way to save on your tenant insurance is to ask about discounts. There are numerous savings available for customers looking to purchase renters coverage, all you have to do is ask! Most times, there are discounts for installing security cameras on your property, having no claims on your history, and more!

Consider increasing your deductible

As you may already know, the deductible is the amount you agree to pay out of pocket when you file a claim before your provider will pay the rest. Technically, if you choose a higher deductible amount, you're taking on more responsibility at the time a claim is filed. In other words, because your provider does not need to pay as much to compensate for your claim, they'll give you a discount on your premium.

Just remember that you should only choose a deductible that you will be able to comfortably afford at the time an insurance claim is filed. So, try and find a happy medium.

Take a look at your coverage limits

Another way you can save your tenant insurance rates is to take a look at your coverage limits. When determining your limits, you'll want to do a home inventory of your items and get a rough idea of how much it would cost to replace all of your items. With this in mind, try and choose a limit that matches your needs.

Just keep in mind that a higher coverage limit will cost you more money, as it will provide you additional coverage should something go wrong.

Obtain multiple tenant insurance quotes

You'll also want to compare tenant insurance quotes from several different providers in Calgary. Doing so will help you find the right coverage you need for the best price. Remember, however, that the best tenant insurance coverage usually doesn't come with the cheapest tenant insurance quotes.

The key here is to balance the right protection with the right price for your bank account.

Pay for your insurance in Calgary upfront

If your finances allow you to, consider paying for your coverage upfront. Most insurance companies will add an administration fee to your monthly costs. But, if you pay for your insurance upfront, you can avoid these costs and save a bit more on your overall costs.

Is tenant insurance worth it?

If you're still contemplating, "Is tenant insurance worth it?" We're here to tell you that, yes, it is! Here are some benefits you can experience when purchasing renters insurance in Calgary:

Peace of mind

The first benefit that tenant insurance offers is peace of mind. Knowing you have coverage ensures that if the unexpected occurs, you'll be prepared to take on the aftermath, no matter how severe the situation or damage may be.

Protects your finances

When comparing the cost of an insurance plan to the potential cost of having to repair all of your items if the are damaged or the cost of paying legal fees, the value of renters coverage clearly outweighs having to pay out of your own pocket.

Protects your interests

Without liability coverage in place, you could be held legally responsible for any injuries or damages that occur on your property. Because of this, you could be taken to court and forced to pay hundreds to thousands of dollars in damages that can significantly impact your finances.

What does actual cash value and replacement cost mean?

When assessing what your renters claim reimbursement will be, your insurance provider will use two different techniques:

Actual cash value

Imagine that you purchased a musical instrument two years ago that was stolen when your rental was broken into. With the actual cash value method, your provider will take into account the value of your instrument at the time it was stolen and factor in any depreciation when determining how much you will be compensated.

Replacement cost

When calculating replacement cost value, your provider will assess how much it would cost to purchase a similar item on the market without accounting for any depreciation that has occurred over the years to determine how much the reimbursement is worth.

Get Calgary tenant insurance for an affordable price with KOHO

With KOHO tenant insurance you can save up for the unexpected, while protecting your finances long-term.

If you're ready to jump-start your savings, reach out to KOHO and open a high-interest savings account with overdraft protection coverage so you can make sure that all of your monthly bills get paid on time, even when life throws the unexpected your way.

KOHO is a go-to choice for Canadians looking to improve their financial knowledge and health. Whether you're looking to learn more about the advantages of prepaid cards, how to invest, or other financial topics, KOHO has an information hub filled with resources that will be tailored to your needs.