Many EICs and expatriates rent accommodation in Canada and wonder about home insurance. Subscribe? Do not subscribe? Today I offer you the essentials of what you need to know on the subject to help you make your decision.
Home insurance in Canada
home insurance is not mandatory for a tenant in Canada, although highly recommended. According to the Insurance Bureau of Canada (IBC), one in four tenants is uninsured.
There are several reasons for this finding; insurance costs are considered too high, people often think that they do not have a lot of property to insure or that the value of their property is not high enough. Error ! Others also mistakenly imagine that the owner will compensate them in the event of a problem.
Why take out home insurance?
It mainly allows you to protect all your property and your home in the event of a claim, but also offers you civil liability protection (damage caused unintentionally to others). The covered risks concerned are the following: fire, water damage, theft, vandalism, glass breakage, electrical damage and natural disasters.
As tenants, you are obviously not responsible for the structure, that is to say the building because it is the owner who is in charge of it. On the other hand, if one of the elements mentioned above takes place, only the property of the owner will be covered and certainly not yours if you do not have insurance for it.
Some examples :
If you let a tap run and the apartment below is flooded, you will have to pay all the charges.
If someone is injured in your home and decides to file a complaint (yes yes it happens, North America is known for this), you will have to pay all the costs.
If you accidentally set the apartment on fire, you will have to pay all costs.
You will therefore not be reimbursed for your property and you will have to pay in addition for any damage to the accommodation you occupy. We often imagine that this only happens to others and yet the risk is very real!
Calculate the value of your assets
Often, especially when you have a temporary visa, you tell yourself that the objects you own do not represent that much. I invite you to make an approximate calculation of the value of all your belongings (computer, cell phone, clothes, camera, furniture, etc.). You would surely be surprised by the amount which is generally much higher than you think, i.e. several thousand dollars.
As for the cost of damage to the apartment, it can be very high and far exceed the cost of your property AND your salary.
Making a fairly detailed list of your goods already allows you to have a more precise idea of their value, but also to facilitate your request if you are insured and you suffer damage because you will then have the inventory already established and within reach. of hand in case of complaint.
Make a copy of this list and keep it outside your apartment. If you have invoices or guarantees for certain items, this will also facilitate the request, so keep these documents in a file.
The different types of home insurance
In general, you will be offered a formula covering your goods in the event of specific/specified risks, also including your civil liability, or an “all risks” formula which will cover your goods against all risks (except those excluded in the contract) and including also your civil liability.
The cost of the second is obviously higher but it offers much more complete protection.
Which insurer to choose?
Although the basis is the same, the offers still differ depending on the insurer. The best thing to do is to compare. Ask for an evaluation from several organizations to see which one offers you the most interesting solution.
Before deciding, remember to ask precisely what is insured and what is not, as well as the maximum ceiling, i.e. the amount that can be claimed in the event of a claim. Remember to read all the conditions of the contract before signing it.
To find an insurer, you can already ask your local bank because some offer home insurance (like Desjardins for example).
If you own a vehicle, check with your insurer as they may also offer home coverage and could possibly get you a good price for both.
Here are some insurance comparators to find the one that suits your needs: Kanetix and Hyperassur.
You should be able to easily find good coverage for between $15 and $30 per month.
About Civil Liability
Generally, the insurance you take out for your stay in EIC Canada covers Civil Liability. That’s already less. Do not hesitate to contact your organization to be sure.