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Tenant’s insurance: how much could it really cost?

You invested much time and money on your apartment and you know it inside out. But do you know how much you should insure it for so it's adequately covered? If you’re looking for data to give yourself a realistic idea of how much tenant’s insurance might cost, find out more by reading these tips from the La Capitale blog.

What should the amount correspond to?

A realistic amount is one that includes the value of your property. In other words, this amount covers what you would pay to replace the items in your apartment with new, comparable property. In the event of a major loss, you would have to purchase everything again: furniture, dishes, clothing, sporting goods, etc.

How do you establish this amount?

  • Start by taking an inventory of your belongings. It’s the best way to determine their true value. This exercise may require some effort, but there are many tools that can make the task easier such as the electronic version of the Personal Property Inventory form created by the Insurance Bureau of Canada (IBC) and the Chambre de l’assurance de dommages (ChAD). You can also look into mobile apps created for this specific purpose, such as Know Your Stuff or Cbien.
  • Update your inventory every year. Perhaps you got a new fridge, skis or a computer in the last few months? The value of your property changes constantly!
  • Consult your insurance advisor. During the process, a specialist can help you establish the right amount.
  • With each insurance claim, you can start anew: When you submit a claim, don’t base it on the valued amount provided by a previous insurer. Recalculate to check whether the amount covers the actual value of the contents in your apartment.

What’s the impact of the established amount on the premium?

The value of your property will have a partial impact on your tenant’s insurance premium. Overall, however, this amount has a limited impact on the cost, because many other factors come into play. That’s why underestimating the actual value of your property to save on your premium is not helpful: The discount you might get would not offset the risk of not having adequate coverage.

Conversely, with adequate coverage, you can “refurnish” your apartment in the event of a problem – and maintain your quality of living!

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