If you’re planning on renting an apartment in Edmonton, it’s always a good idea to have tenants insurance. It’s important to understand that your landlord’s policy only covers the building itself and any appliances and furniture that came with the apartment. Their policy does not extend to any of your personal belongings within the unit.
What does it cover?
Tenants insurance (also known as renters insurance) covers replacement costs for your personal property due to an insured peril like fire or theft. The coverage also extends to when your belongings aren’t inside your home. For example, you can make a claim if your camera gets stolen while travelling subject to the deductible stated on your policy declaration page. It also includes personal liability coverage, which protects you in the event that someone injures him or herself in your home.
For many people, the choice of whether or not to get tenants insurance is an easy one. However, roommates may be faced with the further decision of whether or not to share a policy. To make this decision simpler for you, here are some things to keep in mind.
What’s the upside to sharing tenants insurance?
The advantage to sharing a policy is that splitting the costs of a single tenant policy is cheaper than each person getting his or her own policy. Don’t think, however, that it’s half the cost. Shared policies have a higher price tag, as insurers are assuming greater risk.
What are the downsides to sharing a tenant’s insurance policy?
There are some drawbacks to sharing a policy that should be considered.
- Difficulties can arise when making claims
When you make a claim and have it accepted, the cheque you receive from your insurer will be made out to you and your roommate, and both of you will have to sign it. This sometimes leads to issues — for example, you and your roommate may not agree about how the payout ought to be divvied up.
- Your insurance record may be negatively impacted
If your roommate makes a claim, it will end up on your insurance record, whether or not the incident reported involved you. Your insurance record follows you and you can expect higher premiums in the future should your roommate decide to file any claims.
- Please note, due to the risks on their end, some insurers don’t sell single policies to roommates if they aren’t related or a couple. And very few insurers sell single policies to three or more roommates.
Find the Perfect Tenants Insurance Policy in Edmonton
To explore your options for tenants insurance further, reach out to our brokers at MBS Insurance Brokers Ltd. Whether you’re looking for a shared or individual policy, we’ll help you get the coverage that fits your needs and your budget. To learn more, or for a free quote, contact us today.