Tenant Insurance Ottawa

Renting a home in Ottawa comes with certain risks that you need to be prepared for. Fortunately, with the right tenant insurance in place, you'll be prepared for whatever life throws your way, allowing you to weather the storm when the unexpected happens.

If you're a renter in Ottawa who doesn't have a tenant insurance plan in place, take a look through our comprehensive guide below for more information about why this type of investment is worth it.

What is tenant insurance coverage?

Before you purchase tenant insurance for yourself, knowing basic information about what this type of home insurance covers can help you get a better idea about whether or not a standard tenant insurance policy will provide enough coverage for your unique needs as a renter. While the terms and conditions may vary slightly between each insurance company, you can generally expect the following:

Contents insurance

Contents coverage is the portion of tenant insurance that is specifically designed to protect the personal belongings of Ottawa tenants from having to pay for the repair or replacement costs that may occur as a result of covered perils listed in their policy.

Let's say that your rental property in downtown Ottawa experiences a break-in that results in stolen items and damage to your personal belongings. Without insurance coverage in place, you'll be responsible for all costs that result from the incident, whether it be replacing your stolen items or repairing any property damage that occurred to your belongings as well.

Now, when you think about the value of all personal belongings, these costs can add up quickly and significantly impact your finances. Luckily, however, getting insurance means that your insurance company will pay for all impending expenses that arise following an insured loss, so you can rest assured that your finances are safe.

Liability coverage

The next portion of Ottawa tenant insurance is personal liability coverage. Essentially, personal liability coverage protects policyholders against any liability claims alleging bodily injury or property damage to someone else's property.

For example, if you have friends over to your rental property and someone injures themselves without liability insurance, you can technically be held legally responsible.

This is where personal liability protection comes into play. Tenant insurance protects the interests and finances of Ottawa renters by covering expenses that may arise from a third-party claim. This includes medical bills, legal costs, settlement expenses, and other fees that may be incurred, regardless of whether you are found responsible or not up to your coverage limits.

Ultimately, you can look at tenant liability insurance as a security blanket that has your best interests in mind.

Additional living expenses

Additional living expenses are the final portion of renters insurance. If an insured peril occurs in your home that results in your living space being unliveable, your additional living expenses policy will pay for the cost of a hotel room, meals, and other expenses that may arise when you cannot live at your home.

Not only will this save money, but it will also ensure that you're able to live comfortably during an already stressful period by guaranteeing that your personal finances are protected by allowing you to save up for the unexpected without having to dip into your hard-earned savings accounts.

Optional Ottawa tenant insurance

Beyond standard renter's insurance in Canada, Ottawa renters are also able to purchase optional coverage to supplement the degree of protection they have. If you've determined that basic tenant insurance in Ottawa is not enough, you may want to consider the following add-on policies:

Identity theft insurance

Let's say your rental property in Ottawa is broken into. During the robbery, personal identification items such as your passport, driver's licence, social security number, and bank documents are stolen with the intent of committing criminal activities.

With identity theft renters insurance, the cost of recovering and replacing your documents will be covered, preventing you from having to pay out of pocket for any of these expenses.

High-value contents coverage

If you own valuable belongings such as artwork, musical instruments, jewellery, luxury bags, expensive electronic devices, and other items with a high price tag, it's important to note that standard tenant insurance covers your personal property up to a certain amount.

Therefore, during a tenant insurance claim, it's possible that your insurance limits won't be enough to repair or replace your high-value belongings. So, to bridge this gap, Ottawa residents can purchase additional contents coverage that is specifically designed to cover expenses that result from your high-value items.

Overland flooding coverage

Because Ottawa is located along the Ottawa River, periods of heavy rainfall could lead to overland flooding in the area, which could cause damage to your rental property. However, with overland flooding insurance, any losses that occur as a result of overland flooding will be covered by your insurance provider.

Sewer backup insurance

Sewer backup tenant insurance is a type of coverage that can be incredibly valuable to those who live in older homes throughout Ottawa or in a landlord's basement suite. Because the area experiences heavy rainfall throughout the year, your unit could become susceptible to flooding due to sewer backup that flows through your drains and into your living space.

Sewage water can cause significant damage to your personal property and cost hundreds to thousands of dollars in repairs. But, with this type of tenant insurance in Ottawa, you can rest assured knowing that your finances are protected.

What do tenant insurance policies not cover?

Like all types of insurance, there are certain perils that tenant insurance in Ottawa will not cover. Knowing what is considered a covered peril and what isn't can help you know how to navigate a tenant insurance claim process in the future, should the unexpected happen in your rental home.

Here's what you can expect your tenant insurance in Ottawa not to cover:

Water damage

Generally speaking, water damage is a common peril that is not found in most tenant insurance policies. For example, if you accidentally leave your sink running while you're out of town, which causes water damage to your interior and belongings, your insurance company will not provide coverage.

Now, when it comes to unintentional water damage that occurs unexpectedly, your tenant insurance will cover you. We recommend speaking with your insurance provider for further clarification on what water damage is protected under your specific renters insurance.

Pest infestations

Whether it be bed bugs, ants, cockroaches, rats, or another type of bugs or vermin, you can anticipate your tenant insurance in Ottawa does not provide coverage. These types of damages to your rental unit and personal property are typically considered a maintenance issue and will, therefore, be the responsibility of your landlord to resolve.

The best thing you can do in this scenario is reach out to your landlord as soon as possible to ensure that a professional pest infestation company is contacted before further damage occurs.

Intentional harm or criminal activities

It goes without saying that your renter's insurance does not cover any criminal activities or intentional harm to property or third parties. For example, if you intentionally flood your apartment with the hopes of receiving compensation or intentionally start a fire, you'll be on the hook for any costs that you incur.

Remember that insurance companies work with investigators and have in-house fraud departments that look into suspicious insurance claims. So, if you're thinking about taking advantage of insurance, know that you could be charged with fraud.

Is Ottawa tenant insurance mandatory?

So, is home insurance a legal requirement in Canada? To put it simply, no home insurance or renters insurance is a legal requirement in Ottawa or the rest of Canada.

However, many landlords still require their tenants to purchase renters insurance. So, how can they do this? As a precaution, landlords can require Ottawa renters to purchase an insurance policy by putting it as a condition in the lease agreement. That said, your landlord can only make you purchase personal liability coverage. Whether or not you purchase content coverage is up to you.

Additionally, if you have already signed your lease agreement and it doesn't state that property insurance is needed, your landlord is not able to ask you after the fact that you purchased insurance.

Does my landlord's insurance cover me?

A common misconception that new renters have is that your landlord's insurance automatically covers you when this couldn't be further from the truth. Ultimately, your landlord's insurance is meant to protect their property and their interests by covering the physical structure of the rental unit and personal liabilities that may occur on the premises of the rental.

In contrast, tenant insurance in Ottawa protects the renter's belongings, while liability coverage prevents them from having to pay out of pocket for costs arising from a third-party claim.

At the end of the day, both types of insurance are meant to protect all parties involved in the event the unexpected occurs.

How much does tenant insurance in Ottawa cost?

Now, you're probably thinking, how much is tenant insurance going to cost me as an Ottawa resident? Like all kinds of insurance, the amount you pay for your coverage is going to vary from others. That said, you can expect your tenant insurance to cost approximately $450 a year, which averages out to just over $35 per month.

How are Ottawa tenant insurance premiums calculated?

With the costs listed above in mind, you may have some questions about how an insurance provider calculates the renter's insurance premium for each customer. As we said, the cost of tenant insurance in Ottawa depends on numerous different factors, including the following:

Where your rental home is located

A large part of how your insurance premium will be calculated is where you live. For example, living in a large city like Ottawa will be priced differently than Ontario residents who live in more rural areas. This has to do with the different common risks associated with each location, including local crime rates, weather patterns, and more.

Your credit score

While not all insurance companies use a credit score to calculate insurance costs, a lot of them do. And in this scenario, having a higher credit rating is going to work in your favour. To improve your credit rating, it's essential that you pay off your monthly debts on time and only charge purchases you know you can afford.

Build your credit with KOHO by applying for a virtual credit card and receive a free credit score check today!

Your tenant insurance claims history

If you've been a renter for a long time and have previously purchased an insurance policy, your provider will take into account your claims history to determine how much of a risk you are to insure moving forward.

Therefore, it should come as no surprise that those with a history of claims on their record are going to be viewed as more of a risk than those with no claims on file. As a result, you can expect to pay more each month for your insurance than others.

Whether you live with pets

Living with pets can also affect your insurance premiums, especially if you own a high-risk breed. The reasoning behind this is that you'll likely need higher insurance limits than others to protect your interests in the event your pet causes property damage to a third party or leads to injuries.

Your coverage limits

The insurance limits you opt for at the time of purchase will also influence the amount you'll need to pay for your overall renters premium. For instance, opting for higher coverage limits will lead to more expensive premiums at the end of the day because you're essentially purchasing more protection in the event a claim is filed, compared to renters who choose lower limits.

The tenant insurance policies you choose

Finally, the tenant insurance you choose will also play a role in your overall costs. Choosing add-on policies outside of a standard tenant insurance plan will yield higher costs. Again, this is because you are choosing to add more protection to your insurance portfolio, which will benefit you at the time a claim is filed.

How can I save on tenant insurance in Ottawa?

If you're trying to save on monthly expenses, the added cost of a tenant insurance plan can be overwhelming. Luckily, there are ways that you can save on your tenant insurance, and we've listed these tips and tricks for you down below:

Bundle your auto and tenant insurance coverage

If you already have car insurance, you may want to consider bundling your tenant insurance with your current coverage. Insurance companies enjoy rewarding loyal customers. So, if you already have a policy in place with a provider, consider adding tenant insurance with the same company to unlock savings.

An added bonus to bundling your policies is that they'll be easier to manage throughout the year.

Ask about renters insurance discounts

Another great way to save on your tenant insurance is to ask an insurance broker or agent about available discounts. Companies often offer savings like a claims-free discount, security features discount, and more, which you may qualify for!

Think about increasing your deductible

As you may know, the deductible is the amount you pay out of pocket at the time of an insurance claim before your coverage kicks in and covers the rest. By increasing your deductible options on your tenant insurance, you're technically taking on more financial responsibility at the time of a claim, meaning your insurance provider will pay less.

As a result, your provider will provide a discount on what you pay monthly. Just keep in mind that opting for a higher deductible should only be chosen if you can comfortably afford to pay a higher amount at the time of a claim.

Take a look at your coverage options

At the end of the day, you should only pay for tenant insurance that you need. So, at the time you're purchasing coverage, make sure to consider your unique needs and circumstances thoroughly. This will help you find a tenant insurance plan that provides sufficient protection without going overboard.

At the end of the day, the key is to find an affordable premium that doesn't sacrifice your level of protection.

Pay for your Ottawa tenant insurance in one go

Rather than paying for your renters insurance on a monthly basis, consider paying your premium upfront. When you pay on a monthly basis, your insurance provider will tack on an administration fee, given that they need to process your payment as you go.

However, by paying for your tenant insurance in Ottawa in one go, you can avoid these administration fees and essentially save money on your premium.

Get a tenant insurance quote from multiple insurance providers

Most importantly, don't forget to get a tenant insurance quote from as many providers as possible. You can do this by getting an online quote from different insurance websites or by working with an insurance broker.

Either way, getting a tenant insurance quote from various providers can help you compare costs and coverage. Once doing so, you'll be able to choose a policy that works best for your finances and interests.

Purchase Ottawa tenant insurance with KOHO

As you can see, tenant insurance in Ottawa is a must-have for all renters throughout the province. And at KOHO, we're here to make sure you find the right coverage for your needs at an affordable price.

At KOHO, we’re here to help you plan for spending and saving. To kickstart your financial wellness journey, consider opening a high-interest savings account with overdraft protection coverage.

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