How does tenant insurance work in Alberta?
Tenant insurance works like other types of insurance in Alberta. Like home insurance in Alberta, you receive financial protection in exchange for paying an annual premium.
The one area they differ is the coverage. Tenant plans do not cover the building structure. This is covered as part of landlord insurance by the property owner. When a renters and landlord policy are used in conjunction with each other, the property and your personal belongings are protected against most perils. Everyone has protection.
Your policy options are also similar to homeowners' plans. There are three main considerations:
- Comprehensive: This is similar to comprehensive home insurance. It offers the most protection for your stuff.
- Broad: This is like broad form home insurance. You have comprehensive perils for your unit. You also get named perils for your stuff.
- Basic (named perils): This is similar to named perils home insurance. It protects threats specifically listed in your plan.
The Province of Alberta outlines insurance regulations in the Insurance Act. The Alberta Superintendent of Insurance (SOI) regulates insurance matters.
Is tenant insurance mandatory in Alberta?
Tenant insurance is not mandatory in Alberta. But this doesn’t mean that you shouldn’t get it. There are instances where you will have to get it. It is increasingly common for property owners, managers, and landlords to require you to get insurance as a condition of your lease agreement. If they request it, you’ll have to provide proof if you want to rent the unit. Regardless of your rental situation, having tenant insurance is always better than not having it. That added bit of financial protection will give you peace of mind in knowing you’re covered.
Why do I need tenant insurance in Alberta?
All types of Alberta renters can benefit from tenant insurance - students, families, roommates. Even though it's not legally required, there are a few reasons why you still need it:
- Protection for your stuff
- Tenant insurance is affordable
- Legal liability protection
- Financial protection
- You establish an insurance history
- Unpredictable weather - you never know when a chinook or storm could cause damage
Alberta tenant insurance FAQs
Alberta tenant insurance is designed for people who rent their residence. You can get insurance for all types of rentals including houses, apartments, condos, student housing, and even a room in a house. It is different from homeowners plans because it protects your personal belongings and liability, not the actual structure of your rental. This is covered under the property owner’s insurance.
All renters can benefit from having tenant insurance in Alberta. It’s not only affordable, but it can also provide you with invaluable financial protection. Without insurance, any of your personal belongings damaged because of theft, fire, or other peril would be lost. You would have to pay out of pocket to replace them. You also have exposure to liability if someone is injured in your residence. You could face legal fees if someone chose to sue you if they tripped and fell or were hurt in other ways.
Yes. Any property owner has the legal right to request their tenants to show proof of insurance as part of their lease agreement in Alberta. Owners do this to help reduce their overall risk when renting their property.
Tenant insurance, just like any other type of coverage in Alberta, is personal and should be customized to meet your unique requirements. How much you get depends on several factors such as how much stuff you have, your budget, and risk tolerance. The more coverage you get, the more protection you will have, in addition to other policy perks. Ask your insurance advisor how much protection you need.
To get a tenant insurance quote you will need to provide information about you and the apartment or house you are renting in Alberta. You will need to have the address, an estimate of the value of your personal contents, and a list of who is being insured under the policy. Additional information may be requested by your insurer.
Cost is always a top consideration when comparing your insurance options. Tenant insurance is very affordable in Alberta. There are many policies available for less than $1 per day. Considering the level of financial protection you will receive, it is more than worth it.
