Alberta Tenant Insurance

The importance of tenant insurance in Alberta

Tenant insurance in Alberta is an affordable way to protect yourself from costly surprises. For a relatively low premium, it can help protect the belongings you rely on every day and provide support if an unexpected event disrupts your life.

Your landlord’s insurance policy does not cover your personal belongings or protect you from personal liability. Tenant insurance helps close that gap, giving you practical financial protection and peace of mind when you need it most.

What does tenant insurance cover in Alberta?

There are three main areas of coverage for Alberta tenant insurance:

• Physical Damage
• Personal Liability
• Additional Living Expenses

Physical Damage

Tenant insurance can cover physical damage to your personal belongings like clothing, furniture, and anything else you own.

Keep in mind that there is a “single item limit,” which is the maximum amount that you will receive for any one item. If you have high-value electronics, jewellery, art, sports equipment or collection items, you should consider “scheduling” them to ensure they’re properly covered. One of our Alberta tenant insurance brokers can help with this.

Here is a list of commonly covered perils (causes of physical damage) for tenant insurance:

• Theft
• Vandalism
• Fire
• Smoke
• Explosion
• Wind
• Hail
• Impact by vehicle or aircraft
• Impact by falling object (like a tree)
• … and more

Some perils require special endorsements to your insurance to be covered. This includes earthquake, sewer backup and overland water (flooding) coverage. These endorsements may not be offered by all insurance companies or to all customers. Talk to your broker for more details.

Personal Liability

Tenant insurance provides personal liability coverage to the policyholders. This covers your legal expenses in the event someone sues after they are hurt or has their property damaged while visiting your home or due to your unintentional actions.

Additional Living Expenses

If you have a covered claim or are mandated to evacuate your home by a civil authority, you are eligible for additional living expenses. This covers the extra costs for things like accommodation, transportation and food while you must vacate your home.

What isn’t covered by tenant insurance in Alberta?

Tenant insurance doesn’t cover everything. It is designed for unexpected events. Here are some perils not normally covered by tenant insurance:

• Wear and tear
• Regular maintenance
• Rust or corrosion
• Mould
• Slow seeping, leaks, et cetera
• Damage by rodents, insects, and animals

What is and isn’t covered will be outlined in your tenant insurance policy documents.

In Alberta, what affects the cost of tenant insurance?

The following factors can affect the cost of tenant insurance:

• Your rental address or postal code
• Your credit rating
• Your insurance and claims history
• The type of rental building, such as an apartment, house, high-rise or rowhouse
• Details about the rental building, such as construction type, age and safety features
• Proximity to hazards like rivers or areas with higher water-damage risk
• Damage mitigation and security devices, such as smoke detectors, water alarms, monitored security alarms, sump pumps or backwater valves
• The replacement value of your personal belongings
• The amount of personal property coverage you choose
• Your personal liability limit
• The claim rate and crime rate in your neighbourhood
• Your deductible, policy limits, loss settlement type and optional coverages
• Discount eligibility, such as bundling tenant and auto insurance, claims-free savings or monitored alarm discounts

The riskier your home is to insure, the higher your rates will be. This is determined by complicated calculations by the insurance company – and every single one is different. That’s why it’s important to shop around for the best coverage and rates.

How to get the best tenant insurance rates in Alberta

Here are some tips to get the best tenant insurance rates:

• Work with a broker. A broker can take care of the price shopping for you as well as advise on balancing coverage with the price.
• Create an inventory. This way you can ensure you have enough coverage for your personal belongings, and you won’t pay for coverage you don’t need.
• Install mitigation devices. Smoke, carbon monoxide, water and monitored security alarms can all get discounts from insurers. So can devices like sump pumps and backwater valves.
• Review your insurance. Be sure to look at your policy at least once a year or when you experience a major life change.
• Stay insured and stay on top of insurance payments. Insurance companies reward those who’ve been consistently insured with lower rates. You can usually pay your tenant insurance in instalments if annual payments are too difficult to make. Acera Insurance also offers premium financing.
• Only submit a claim if you can’t cover the damage yourself. Small claims can lead to big increases in your rates.

Talk to one of our experienced tenant insurance brokers for tailored advice to your individual situation.