Finding and securing a new apartment in Nova Scotia can be challenging.  But when you do, thoughts shift to decorating your new space to feel like home. Tenant insurance is probably one of the last things on your mind. When it that time comes, it’s good to know the ins and outs of tenant insurance. So, let’s take a closer look at five common myths about tenant insurance.

Top 5 Myths About Tenant Insurance

Myth: A landlord can not make you get insurance.

The answer to that question depends. Tenant insurance is not mandatory under the Nova Scotia Residential Tenancies Program. However, many property managers won’t lease their units without apartment or tenant insurance coverage in place. Landlords have the right to insist that you are insured as a lease condition. As a result, in most renting scenarios, you typically need tenant insurance.

Myth: Your Tenant Insurance only covers your belongings.

This is false. Tenant insurance will protect YOU and your belongings. Tenant insurance covers any injuries or liabilities that may arise, for example, if a friend slips and falls, hurting themselves while in your apartment. Your policy will also cover any accidental damage you cause to another renter’s apartment or property, so you aren’t stuck with the bill. However, tenant insurance only covers the policyholder’s personal belongings, not their roommate’s. This is why it’s essential for each roommate to have their own tenant insurance policy.

Myth: Your tenant insurance covers damage to your building, like a broken window.

As a renter, your tenant insurance does not cover any part of your building. After all, you don’t own the building. All windows, doors, walls, appliances or fixtures belong to your landlord. For example, what happens if someone breaks into your apartment through a window and steals your belongings?  In this case, your policy would cover your belongings, but your landlord’s insurance would cover damage to the window.

Myth: “Loss of use” coverage pays for the entire cost of alternate living arrangements if you have to leave your rental unit due to unforeseen events like fire damage.

Loss of use or additional living expenses coverage is designed to cover any additional expenses you incur because of an insured event, above and beyond your regular living expenses. Let’s consider these examples:

• If your rent was $1,500/month, but now you have to pay $1,800/month for an alternate place to stay, you’ll be reimbursed the additional $300/month.
• If your apartment had a kitchen, but the alternate space does not, you’d be covered for additional food costs as they exceed your average grocery bill.

Myth: Tenant insurance covers ALL your belongings, including electronics and valuables.

A standard tenant insurance policy will protect most of your belongings, but certain big-ticket items have special limits or require additional coverage. High-value electronics, sports memorabilia, jewelry, and collectibles may need additional coverage. So, make sure to ask your insurance provider to clarify coverage for your high-value items in the event of loss or damage.

When shopping for insurance, consider a local insurance broker, like our friendly and smart Bauld Insurance advisors. They understand the local dynamics of your community, and you’ll actually get a personalized experience that is lacking with the big insurance companies. Our Bauld Insurance advisors can answer any insurance questions and sometimes more. For more on Tenant Insurance, visit our web page to get answers to frequently asked questions or to request an insurance quote.