Canadian Underwriter just reported on some pretty concerning findings. Nearly half of Canadian renters do not have tenant insurance. That’s right, almost 50% of Canadian renters have no protection in place for liability and possessions. And this is occurring during the most uncertain time in recent history. This divide persists because many households do not have a clear understanding of the risk they accept by not maintaining a policy. As a result, the news is riddled with stories about how people have lost everything by not having coverage:
“I lost absolutely everything. I even worked from home. All my clothes and everything […] I didn’t have tenant insurance; my mistake.” (Global News, Jan 5 2022)
““I am asking for any help, we will need to get her back on her feet, new place, new car, everything as she had no renters insurance.” (Vernon Morning Star, Dec 28, 2021)
If you want to avoid becoming just another quote in the local news you need to cover the one gap that these unfortunate souls neglected to do. While we have covered the need for renters insurance extensively in the past, recent news from the insurance industry calls for an update. Please consider the following.
3 More Reasons Why BC Renters Must Secure Tenant Insurance in 2022 and Beyond
Because Climate Change Calls for It
Strata and landlord insurance policies typically cover property damage from rainstorms, hailstorms, lightning storms, windstorms, earthquakes, fires and smoke. For this reason renters may assume that they are in the clear. However, while strata and landlord insurance may rebuild or repair the condo, town home, or house when damaged by weather events, it won’t repair or replace your belongings. It also won’t cover temporary relocation. Loss and damage sustained to your own furniture, electronics, and appliances (etc.) will not be covered unless you take action, nor will the cost of finding temporary lodging. With climate change and extreme weather events becoming a very real concern in BC, forgoing renters insurance any longer puts you at equally extreme risk.
Because You DO Have Valuable Possessions
Many renters, especially those living in smaller accommodations, opt out of tenant insurance because they don’t feel as if they have enough possessions to justify it. It’s not like you’re living in a 3-story house with 3-bedrooms, a studio, game room, and outdoor deck with all the bells and whistles, right?
We encourage you to reconsider. Walk around your townhouse or condo and take stock of your possessions. Are you really prepared to let them go for good, or take the financial hit to restore or replace them should there be loss, damage, or theft? What if you or someone else in your household has some sort of cherished collection? Replacing collectibles for the same value that they were initially purchased for is next to impossible when there is scarcity. It is very rare for any household, no matter how meager, to be void of possessions that don’t have a significant replacement cost.
Because You Work-from-Home
Recent data finds that 30% of the Canadian workforce works from home. This number is higher for dual-income households (45% in the top 10% of the earnings distribution) while in the financial, professional, scientific, and technical services sectors, the number grows to a whopping 70%. If you are anyone in your rented home, works from home, then you definitely need to discuss your insurance needs with your broker.
Consider all of the personal electronics that you use to maintain your day-to-day professional duties. Can you continue on without them? Can you afford to repair or replace them should there be loss, damage, or theft? There are numerous scenarios that may now occur as a result of working remotely. Ensure that you’re covered with adequate insurance. While you’re at it, work-from-home professionals and contractors should consider adding-on cyber coverage and independent contractor insurance (as applicable).
Other Articles About Renters Insurance You May be Interested In: