Photo Credit: TD Insurance

Canadian renters at risk of expensive repair or replacement costs of important personal belongings following a loss


Tuesday, January 11, 2022 8:40:00 PM

- 4-in-10 Canadian renters do not have tenant insurance.
- Survey finds almost half of Canadian renters list electronics, including phones, cameras, televisions and laptops as top priority items to protect. -


Canadian renters often think of home insurance as protecting against the loss or damage of the big stuff – like pipes, appliances, and the physical structure of a home or building – and can mistakenly assume their landlord's insurance will protect their most valued and personal belongings against common risks such as theft, fire or water damage. According to a recent TD Insurance* 2021 Tenant Insurance Survey ("the Survey")**, almost half of Canadian renters (41%) do not have tenant insurance with 43% of survey respondents naming personal electronics, including mobile phones, cameras, televisions and laptops as the most valued possessions they would want to protect.

"Insuring a home isn't just for homeowners. It's a savvy way for renters to protect their valued belongings and help cover potentially expensive replacement or repair costs when an accidental or unexpected loss happens," says Craig Richardson, Vice President, Claims, TD Insurance. "If you're renting, your landlord's insurance policy won't cover your personal belongings, like furniture, jewelry, or expensive technology like that new laptop or mobile phone that you may have just received as a gift over the holidays. Consider the New Year as your fresh start to review your insurance needs and determine what coverage is best for you."

Although tenant insurance is not mandatory, many landlords make it a condition of the rental agreement. In fact, 49% of survey respondents say their landlord requires them to have tenant insurance and for good reason. Without tenant insurance, renters could be liable for damages to the rental unit and could face steep expenses for repair costs, in addition to the costs of replacing personal belongings.

More than half (51%) of survey respondents stated they would have trouble replacing any of their belongings without insurance. Only two-in-10 stated they could replace all or most of their personal property without the aid of a tenant insurance policy.

"Protecting personal property that often can be expensive to repair or replace makes sense for homeowners and renters alike. As we continue to move through this global health pandemic, personal electronics like mobile phones and laptops have become incredibly important to staying connected with friends, family, the workplace and they've become some of our most valued possessions." adds Richardson.

Top five most valued possessions Canadians want to protect:

1. Electronics, 43%
2. Furniture, 22%
3. Jewelry, 8%
4. Clothing 5%
5. Recreational equipment 2%

Tenant insurance is the same as renter's insurance – these terms are often used interchangeably. Here are some frequently used tenant insurance terms that are also worth knowing:

All-Risk insurance covers your belongings for losses caused by a wide range of risks (or perils) aside from some explicitly mentioned exclusions in the policy.

Personal Liability insurance coverage protects you if someone is unintentionally injured in your home, or if you've damaged someone else's property and now have to pay for damages.

Replacement Cost means that in the event of a covered claim, items which cannot be repaired, can be replaced with new items of like kind and quality with no deduction for depreciation.

Additional Living Expenses coverage will help you pay for additional costs that are both necessary (like hotel and extra food costs) and reasonable in a situation where you are forced to leave your home following a covered loss.

In addition to protecting personal belongings against common risks such as theft, fire, and water damage at home, tenant insurance coverage applies to items that are both in your home and temporarily away, including while on vacation.

SOURCE: TD Insurance