With real estate prices hitting record highs seemingly across Canada--especially in Toronto and the surrounding communities--many millennials are writing off the notion of owning a home for a long time. They’re content to rent, knowing they’ve got the freedom to up and leave with just a few week’s notice.
But renting does come with a few of its own expenses, like tenant’s insurance.
Tenant’s insurance is a little different than house insurance. House insurance protects the building itself. So if the place goes up in flames or a window gets broken, insurance takes care of it--minus a deductible, of course.
Tenant’s insurance just covers the contents inside of a property. Thus, the cost of a policy is much lower. Most people will pay under $200 per year for a tenant’s policy.
Even though the product is so cheap, many people don’t bother getting tenant’s insurance, claiming that their things are only worth a few thousand dollars anyway. It’s silly to spend money insuring things that don’t really have that much value anyway.
And some tenant insurance policies will only pay out a fraction of a value’s worth, claiming that it was almost wore out anyway.
But it’s tough to start over if the unspeakable happens. Even if the cheque from the insurance company doesn’t cover everything, it’s still a nice start. And the cost isn’t prohibitive. Most of us can easily afford the premiums.
Most renters should have tenant’s insurance. They just have too much to lose otherwise.
