Applying for rental insurance is easier and more affordable than many Canadians believe. Stats Canada researched rental insurance quotes listed by various providers, and determined the average monthly rate ranges between $13 and $25. The price variance is based on the reputation of the neighbourhood where a tenant rents, as well as the structural integrity of the building. Stats Canada says too many tenants learn the hard way that rental insurance is a form of financial security.
Nicholas Adams rented an apartment in Ottawa’s Vanier neighbourhood but never had renter’s insurance. Unfortunately shortly after midnight on March 8, a fire occurred that firefighters estimate will cost the building’s owners at least $1 million in damages. The building was later declared a complete loss. The owners had the property insured by Rhodes & Williams Ltd, but the company states on its website that property insurance won’t help tenants like Adams who lived without renter’s insurance.
“Your landlord’s insurance will not cover your personal belongings. Your furniture, jewelry, artwork, entertainment equipment and other valuable belongings will not be protected.”
Adams says renter’s insurance makes sense to him now that he has lost all his property, and he wishes he had come to that realization before the fire. Unfortunately Adams isn’t unique in his regret – most of the tenants in the building lived without renter’s insurance.