Even though the building is insured by the landlord, tenants should carry their own insurance.
A tenant insurance policy includes 3 important coverages that protect both landlords and tenants:
- Personal Property – this protects the personal property of tenants such as their electronics, clothing, jewellery, furniture, etc.
- Additional Living Expenses – this provides extra funds to pay for alternate accommodations in case an insured peril damages the unit and the tenant needs to move out during repairs
- Liability – while the landlord’s insurance would cover building damage, tenants are also responsible for losses they cause to the landlord’s property. This coverage assures the landlord that the tenant will have funds available to compensate them should the tenant damage the property.