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Top Reasons to Buy a Tenants Insurance Policy

Here are some reasons to make sure you have a Tenants Insurance Policy.

Everyone needs home insurance of some kind.  If you rent or lease the place where you live, you need a Tenants Insurance Policy.  Read more to find out the Top Reasons to Buy a Tenants Insurance Policy.

Reason 1: Replacement cost

When something is lost or stolen, you want it replaced. And you would like it replaced quickly. What happens if a thief steals your 4-year-old flat-screen TV? Do you want to go out and look for another 4-year-old flat-screen TV? No, you would like a new TV. In a nutshell, that explains replacement cost. With Replacement Cost Insurance, if you lose a 50-inch TV, you can get another 50-inch TV.  The same one of “like kind and quality.” Old shoes do equal new shoes. Old couch equals new couch. Provided the new one is of “like kind and quality,” you will be good to go!

Reason 2: It all adds up!

It all adds up! From Christmas decorations to spices to your favourite sweater, you have a lot of things. Do you have any idea how much stuff you have? Whether this is your first year in an apartment or your tenth, your family probably has many belongings. One of the big things people do not realize is how much things cost when they are brand new and not on sale. You, like many people, shop for deals or wait till after Christmas to get that new TV. But if your TV gets stolen in March, you will not wait until the end of December to get a new one. Did you know the average person has $4,000 in clothing? Most people have six pairs of jeans, 5 to 20 pairs of shoes, two winter jackets, sports jerseys, yoga pants and on and on. Think about all the stuff you do not see in the closet that may be in your living room, kitchen, and bathroom. A Tenants Insurance Policy allows you to replace your belongings in the event of a loss.  Keeping a list of all the things you do own is a great idea.  That makes it easier in the event of a claim.

Reason 3:  Water damage

Have you ever left a tap running by accident? Well, if you have, you would not believe the damage it can cause.  Not only damage to your unit, but maybe the one below or all the homes underneath you. In your apartment, water can be very destructive. Carpets, Flooring, area rugs could all be lost. Now think about those neighbours and your landlord.  You want to make sure your accident does cause you huge expenses for other units. A cost you may have to cover if you do not have Tenants Insurance.

Reason 4:  Your landlord requires you have insurance

Most if not all landlords require that you have Tenants Insurance.  Almost every Rental Agreement or Lease says you must have a Tenants Insurance Policy to protect you and the landlord.

Reason 5: Smoke or water damage from another unit

As the example in reason 3, things can happen in other units by accident.  Just imagine one night at 3 am the building fire alarm goes off. You open the door to your condo, and the hallway fills with smoke. You grab your family and flee with literally the clothing on your back. The next day you can get back into your unit to grab a few things, but that is it. Everything in your home smells like smoke. From the fire hoses, there are puddles of water in your home. You did nothing wrong, but now you are out thousands of dollars. If you have your own Tenants Insurance Policy, that policy will take care of you. Cleaning, replacing lost or damaged contents, and even putting your family in a hotel as needed are covered. If you do not have an insurance policy, you may not have any protection or restitution from the unit owner that caused the accidental fire.

Reason 6: Pets

If you have a dog (or any pet) and it bites or injures someone, you are liable. Believe it or not, your Tenants Insurance policy will protect you if someone sues you due to your dog`s behaviour.

Reason 7:  Damage to a hotel room while on vacation

If you are on vacation and you accidentally cause damage to your hotel room, you may be held responsible (see Reason 3 above). Not only for the damage to the room but the lost revenue. Who wants their vacation ruined in that way.

Reason 8:  Additional living expenses

Even the most minor fire can leave your home uninhabitable. If it does, where are you going to spend the night? Your policy will have what is called “Additional living expense.” Tenants Insurance Additional Living Expense coverage provides funds to pay for additional expenses you incur from an insured loss. The insurance company will pay for those accommodations and living expenses.

Reason 9:  Theft

If there is a will, there is a way. It can happen to you, especially on ground-floor apartments. Thieves often break into units looking for spare cash or jewelry. Make sure you do what you can to protect your things inside your home.  Also, make sure you know what security your landlord provides.  Still, if something should go wrong, you want to make sure you have the protection you need.  If you have jewelry, make sure you identify the amount on our online application or directly talk to your broker.  We are always here to help.

Reason 10:  Upgrades to your unit

“Hey, Alexa! How much stuff do I have?” Alexa answers, “You have a lot of stuff. Including all your new lighting fixtures, custom wallpaper, and smart switches. Those items cost about $2,500.”  Many of us are now upgrading our switches to new technology. Plus, home renovations are on the rise. Your landlord is only responsible for putting the unit back to “His” condition. Updates or upgrades to your home are your responsibility to insure. Think of those added “belongings” when deciding how much you want for your insurance.  Plus, make sure you add those items to a list of things you own in the event of a claim.

Reason 11:  Identity Theft

Did you know that the number of identity thefts has doubled in the last five years?  It is now increasing by 20% every year. If someone has access to your social insurance number or other personal information, they can wreak havoc on your finances and credit score. Sometimes your identity is more valuable than your belongings.  Make sure your Tenants Insurance Policy has Identity Theft coverage.

We hope this has given you many reasons why you need insurance.  Always make sure you are using a licensed Registered Insurance Broker in Ontario (RIBO).  All Tenants Insurance Policies do not have the same coverage.  Make sure you think about your home and what you need to be covered.  We have tried to make the process easy with our online application.  However, do not hesitate to reach out to us by email, chat, text or phone at any time with questions.  Want to learn more about us. Check us out at Advantage Insurance. We want to make sure you have the Protection Advantage with the Right Tenants Insurance Policy for your home.

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