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How to Find Cheap Tenant Insurance

As a renter, if life throws you a curveball—for example, a fire, theft, or an accident—tenant insurance steps up to help you cover the unexpected costs, so you're not left scrambling. But while it can be tempting to choose the cheapest option, finding the right balance between price and coverage can help save you from the headache and stress of paying hefty repair or replacement costs out of pocket, or footing the bill for legal fees on your own, should the unexpected happen down the road.

Here's what you need to know about tenant insurance and how you could find an affordable policy that fits your budget without leaving gaps in your coverage.

What is tenant insurance and why do you need it?

Tenant insurance is insurance coverage that's designed to help protect renters financially. It could help cover the cost of repairing or replacing your personal belongings if they're damaged or stolen and may also provide financial protection for accidental injuries to another person or damage to their property.

While tenant insurance isn't legally required in Canada, many landlords make it a condition of the lease—plus it could help financially protect you in the face of the unexpected costs of life's little (or big) mishaps.

Why is tenant insurance important?

Tenant insurance matters because it could help you financially manage risks you don't always have control over. From theft to accidental damage to liability claims, if you have tenant insurance, depending on your coverage, you won't necessarily be left having to pay big bills on your own.

Why you shouldn’t settle for cheap tenant insurance

Choosing the cheapest tenant insurance you can find might seem like a smart way to save money, but it often comes at the cost of sacrificing the coverage you need. In the end, opting for a bare-bones policy can leave you with crucial gaps in your coverage.

What to watch out for with cheap tenant insurance policies

While saving money on your insurance is important, not all tenant insurance policies are created equal—and the cheapest tenant insurance option you can find may not be as good a deal as it looks. When assessing policies, keep an eye out for potential issues such as:

  • Limited coverage for your personal items. A cheaper plan might not provide full coverage for lost or damaged belongings, so you could end up with higher out-of-pocket costs.
  • Low liability limits. The same goes for the liability limits offered by a budget policy—if an accident happens and someone gets hurt, a low limit could leave you with a hefty liability bill.
  • High deductible. Remember, low premiums could come at the cost of a high deductible—and a deductible you can't afford may be financially difficult to manage if you need to make a claim.
  • Limited coverage for temporary living expenses. An emergency situation like a fire might make your rental unit temporarily unlivable—and the limited coverage a cheap insurance policy provides could mean you'll end up paying for some of the additional living expenses you incur as a result.

What is the difference between tenant insurance and homeowner's insurance?

Tenant insurance is designed for renters—it provides coverage for your belongings and helps to financially protect you from liability lawsuits, but it doesn't offer coverage for the building itself. That's your landlord's responsibility.

Homeowner's insurance, on the other hand, is for property owners and includes coverage for the structure they own, as well as financial protection for personal belongings and liability.

What factors affect the cost of tenant insurance?

The cost of tenant insurance isn't one-price-fits-all. Tenant insurance rates typically depend on a number of factors, such as:

  • Location. If your rental home is in a higher-crime neighbourhood or in an area that's more prone to extreme weather events, this could affect your premium.
  • Coverage amounts. A higher coverage amount or  additional coverage will generally  increase your premium.
  • Deductible. Similar to homeowner’s insurance, the higher your deductible, the lower your premium may be —but keep in mind, a higher deductible means you'll be paying more out of pocket for claims.
  • Your claims history. Insurers also look at your claims history when determining rates, so if you've made claims in the past, this may have an impact on your premium amount.

How to find cheap tenant insurance

Finding budget-friendly tenant insurance doesn't have to mean sacrificing quality coverage. In fact, a little extra effort in your search for the right policy can have a big impact on your costs. 

Compare tenant insurance quotes and coverage

When it comes to tenant insurance, it can be worthwhile to shop around. But while comparing quotes might help you find the best bang for your buck, make sure you're considering not just the cost of each policy but also the coverage and features being offered for the quoted price. A more costly policy might turn out to offer a whole lot more than a low-cost policy.

Bundle your insurance

If you already have another type of insurance with an insurer (for example, auto insurance), bundling that policy with your tenant insurance may help you save.

Bundling your insurance usually means purchasing two or more different types of insurance policies with the same insurance company, and many insurers offer discounts for policyowners who choose to bundle their insurance. For example, here's how you can bundle and save on your TD Insurance policies.

Think of bundling as a loyalty reward that's a win-win for you: You could save money plus you get the convenience of having everything with one insurer.

Choose a higher deductible

Since the amount of your deductible usually affects your premium, choosing a higher deductible can play a big role in lowering your premium.

But while a higher deductible could lower your premium, it should be an amount that you'll be able to comfortably pay if you do need to file a claim.

Assess your coverage needs

Take a close look at the coverage you actually need from your tenant insurance, so you're not paying a higher premium for coverage you don't need.

Consider preparing an inventory of your personal items, including an estimate of the value of each item. This will help you to determine the amount of protection that makes sense for your needs.

Check for discounts

Take advantage of discount opportunities offered by your insurer. For example, at TD Insurance we offer over 30 ways to save on home and car insurance, including:

  • Obtain a quote and buy online. Go online to get a quote and purchase your policy from us to be eligible for the benefit of this discount.
  • Monitored home security system. Lower your risk of theft by installing a home security system and you could save on your tenant insurance costs as well.
  • Alumni and professional group discounts. Your membership in an alumni or professional group may make you eligible for additional savings.
  • Claims-free reward. Don't have a history of claims? You may be eligible to save with our claims-free reward.

How to keep your tenant insurance costs low year after year

Keeping your tenant insurance costs low isn't just a one-time effort—you want to keep your premiums low year after year. One of the best ways to keep saving on your tenant insurance is to do a yearly review of your policy and check in with your insurer about their latest discounts. For example:

  • Adjusting your coverage to fit your current needs may save you money.
  • An increase in your income could mean you can afford a higher deductible.
  • If you've installed a home security system in the past year, you may be eligible for a discount.

So, if you're looking for affordable tenant insurance that doesn't cut corners? Knowing your coverage needs, exploring available discounts, and making use of the right strategies can help you keep your costs low.

Interested in a TD Insurance tenant insurance policy? Get a quote online today.

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The content on this page is for general information purposes only and does not constitute legal advice. Coverages and discounts described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.

In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence.