Why Tenant Insurance is Essential for Renters in Alberta

When signing a lease in Alberta you will likely find that your landlord or property management company (yes, us included) require proof of tenant insurance before signing a lease. You may ask why tenant insurance is necessary, and the answer is simple: it protects you during your tenancy. But how?

Protection Beyond Homeowner’s Insurance

You may wonder why you need insurance if the property owner is already insured. The reason is that homeowner’s insurance, held by your landlord, primarily covers the physical structure of the property and major appliances. Homeowner’s insurance does not extend to your personal belongings or certain damages you might be held responsible for, including:

• Tenant Belongings including your furniture, electronics, clothing, and other personal items.
• Damage from Tenant Actions including any property damage occurring as a direct result of tenant tampering, neglect, or misuse of items in the home.
• Liability Claims made against the tenant in the event of an injury occurring within the property. 

Benefits of Tenant Insurance

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Protection Against Unforeseen Events:

Life is unpredictable and unfortunate events like fires, theft, or water damage can occur without warning, potentially destroying your personal belongings. Tenant insurance will help to ease the financial burden of a major disaster by covering the cost of replacing your personal property.

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Coverage for Displacement Costs:

Should your unit become uninhabitable due to a disaster like a burst pipe or fire, your coverage can cover the cost of temporary accommodation, meals, childcare, and other living expenses. Tenant insurance ensures that you don’t have to worry about finding a place to live or other additional living expenses during this stressful time.

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Liability Coverage:

Accidents happen. Your liability coverage ensures that if you are found at fault for significant damage to the unit (i.e. fire as a result of a tenant removing batteries from the fire alarm) and legal action is taken against you, you are not personally financially liable for the cost of repairs.

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Where to purchase Tenant Insurance

Tenants are free to select the insurance provider of their choice. For our tenants, however, we recommend Apollo insurance as we are able to offer a discounted group rate.

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While tenant insurance may seem like an additional expense, the small monthly payment provides essential protection for renters in Alberta. It ensures that your belongings are covered, provides support in case you need to temporarily relocate, and offers liability protection. By securing tenant insurance, you can live with peace of mind, knowing you’re safeguarded against unexpected financial hardships.

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