If you’re one of the fortunate Sunshine Coast residents who has managed to find a rental “unicorn” suite, you may have already proactively sought renters insurance. If not, this should be a top priority…

The number of renters is on the rise.

In BC, about one third of all households are renters. This number has grown by 14% over the past five years. According to the Canadian Rental Housing Index, 21% (or more than one in five) renter households in BC spend over half of what they earn on housing. 

Buying a home is a future goal for many renters, but for the interim, renting offers flexibility, convenience, saving and less responsibility. While some renters hold off on home ownership for financial reasons, there is one cost that should not be missed: renters insurance.

We consulted with Michael Fawcus, Manager of Sechelt Insurance, on what pertinent facts you should know about renters insurance.

“Tenants insurance (or renters insurance) is arguably the one coverage option that is most overlooked, with many renters either not knowing about the availability of this coverage; or being unaware of the benefits this coverage may provide.”

Michael adds that many people view renters insurance as “contents coverage” only; or they feel because their landlord insures the building or home, they do not require coverage of their own. But this is a common mistake.

One critical aspect of tenants insurance is liability coverage, as tenants could face potential liability claims against them in the event of a loss to the landlord’s house.

When it comes to claims, Michael refers to the “pot on the stove” analogy. If a tenant left a pot on the stove unattended - resulting in the home and contents being damaged by fire - the landlord’s policy would likely respond to any damage to the building. However, the landlord’s policy will NOT provide protection or coverage to the tenant, potentially leaving the tenant exposed.

In the above scenario, not only would the tenant have zero coverage for their own contents and belongings that may be damaged in the fire, they would also be missing the following coverage options that could otherwise help them:

• Additional Living Expense Coverage

  • Covers the additional costs associated with finding temporary accommodations while the home is being repaired.
    

• Personal Liability Insurance

  • Personal Liability Insurance provides the “Tenant” with liability protection when they were named personally in a lawsuit arising from their use of the dwelling; this could include defending the tenant in the event that the landlord’s insurance provider takes action against them for damages to the landlord’s home as a result of the fire they unintentionally caused.

 
In many cases, rental accommodations are a stepping stone to home ownership. By starting your insurance journey while you are still a tenant, you can help build your insurance history, making additional discounts available when it comes time to buy insurance for your own home in the future.

Bottom line: if you’re renting, protect your assets and liability with a customized renters insurance policy.

 
If you have any questions related to your insurance needs, contact Michael Fawcus at Sechelt Insurance by phone at 604-885-3261 or email mfawcus@secheltinsurance.ca.