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How Is Renters Insurance Different From Home Insurance?

Getting yourself insured no matter the circumstances is a great way to save on unnecessary expenditures. Renters insurance and home insurance are both designed to provide comprehensive financial protection to tenants and homeowners. They can get coverage against various home-related property damages, medical liabilities to others, and unforeseen costs of living.

Homeowners insurance is for people who own their own home or apartment, whereas renters insurance is for tenants. Home insurance covers personal belongings in the house and the brick-and-mortar structure of the home, while rental insurance covers damage to (or theft of) personal property, but not to the establishment itself.

In insurance jargon, unexpected events that damage your property are called “perils”. These perils can differ, but they’re generally quite similar across insurance companies. When a peril causes property damage, you can file a claim with your insurance company. If your claim is accepted, you will be paid for the damage as per your policy details.

In this article, we’ll examine the differences between both types of insurance so that you can make an informed decision when you consider getting insurance as a homeowner or as a tenant.

What is covered in tenant insurance?

Renters insurance is designed specifically to protect non-homeowners when they are living in rented property. The three main areas of coverage are:

1. Contents insurance

Contents insurance includes belongings that are kept inside your rented home, such as appliances, furniture, jewelry, TV, and other personal items. It covers you in case of a robbery wherein these items are stolen, or if they are damaged due to insured perils like a fire or flood.

2. Liability insurance

Liability insurance keeps you covered if a person gets injured in your residence and proceeds to take legal action against you. It also protects you if the damage is caused by you in your home and affects your neighbouring unit. For example, if you leave the tap on and flood your apartment, which then flows into the neighbouring unit, you will be covered for both damages.

3. Additional living expenses

This covers you when you have to live elsewhere temporarily while your home is undergoing repair work due to an uninsured peril like a flood or fire.

Consider Comprehensive Rental Insurance

It is smart to consider getting a comprehensive rental insurance plan that also includes the following:

  • Non-owned property: In simple terms, this is coverage for others’ personal property while it is in your possession in your home.
  • Personal property at another location: If your personal property gets stolen or damaged, while it is temporarily away from your premises (anywhere in the world), it comes under this clause and you are protected.
  • Vehicle belongings: If you keep some items in your vehicles, and they are stolen due to an attempted burglary, then you will still be covered under this clause.

Who needs tenant insurance?

If you are renting, then you should have tenant insurance. Although it is not a requirement in Canada, many landlords will require it as per the terms of the lease. Regardless, it is a smart idea to keep yourself insured at all times so that you are prepared for any unforeseen circumstances.

What is covered in home insurance?

Home insurance policy covers any expenses that occur when something unexpected or accidental happens to your owned home and your belongings. People covered under home insurance get protection against theft, fire, wind damage, and much more. It also allows homeowners to choose from a wide range of coverage options and decide how comprehensive they want their policy to be. It covers more than just your home and goes beyond the brick-and-mortar damages if incurred.

It is important to note that a home insurance policy does not cover risks affecting renters. In that case, a landlord policy is needed to cover any damage, a limited amount of property damage, and the legal liability exposure related to being a property owner.

More specifically, home insurance policies can include the following:

Broad Coverage

The broad coverage policy provides comprehensive coverage on the main building/house that is owned, as well as insured perils coverage that is outlined in your policy.

Basic Coverage

Some insurers offer basic coverage for certain properties that don’t meet normal insurance standards. If there are structural problems with your property that keep it from getting comprehensive coverage, you should correct those issues to save money in the future and to be able to qualify for better coverage.

Personal Liability

You can always be held accountable for any physical damages to anyone on your property. You are held liable for bodily injury or property damage caused to others if they are on your property. Your home insurance’s personal liability clause provides complete coverage during such events on your property.

For example, if a mail carrier slips on your snow-covered walkway and is injured, you may be held legally responsible for the injuries caused to that person. However, it’s important to note that liability coverage does not apply to injuries sustained by yourself or your family who reside in your household.

Contact Marathon Insurance Group

When it comes to getting insured, one can be spoilt for choice and have a tough time deciding which insurer to choose. At Marathon Insurance Group, we strive to offer you the best kind of policies that suit your lifestyle and family needs. You can request a meeting with our professionals, who will design a comprehensive plan that protects you from any unforeseen circumstances.

For more information about getting homeowner or renters insurance in Markham, call Marathon Insurance Group at 844-429-0837 or contact us here.

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