Eight ways to find affordable tenant insurance
This is part two of two in the tenant insurance info series. View part one: “Tenant insurance, explained”.
Tenant insurance isn't just a requirement of your lease with Toronto Community Housing. It protects you from unexpected events like fire, flood, or theft. It can help replace your belongings, including food and medication. Insurance can also cover emergency costs like hotel stays if your home is damaged.
But finding affordable tenant insurance can be hard if you don’t know where to look. Here are eight ways to find affordable tenant insurance that fits your budget.
Check for discounts from your school
Did you go to college or university? Some schools partner with insurance companies that give alumni lower rates. Check your school’s website or contact their alumni office to ask about available discounts.
Ask your bank about discounts
Some banks offer special discounts on tenant insurance if you have a credit card or account with them. Call your bank to ask what they offer.
Compare prices online or speak to an insurance broker
Instead of calling different insurance companies one by one, use a comparison website to get quotes all in one place. These sites allow you to enter your information and see real-time price estimates. This makes it easier to find the most affordable option. Some well-known insurance comparison websites in Canada include:
Insurance brokers are knowledgeable about insurance products and have relationships with many insurance companies. They can help compare policies and prices to find the best deal for you.
Bundle your insurance
If you already have car insurance, ask your provider to see if they offer a discount for bundling tenant insurance. Many companies lower your rate if you buy more than one type of insurance from them.
Ask about special rates
Insurance companies offer discounts, but they don’t always tell you about them unless you ask. Some common discounts include:
- Claims-free discount. If you haven’t made an insurance claim before, you might quality for a lower rate.
- Loyalty discount. Some companies reward customers who stay with them for several years.
Adjust your coverage
If you’re looking to lower your monthly payments, consider adjusting your coverage. Here are a few ways to do that:
- Raise your deductible. A deductible is what you pay before insurance covers the rest. A higher deductible can lower your monthly payment.
- Only pay for what you need. If you don’t own expensive electronics, jewelry, or furniture, you might not need extra coverage.
Pay once a year instead of monthly
Some insurance companies charge extra if you pay your premium monthly. If you can afford to pay for the entire year upfront, you might save money.
Talk to your case worker
Your insurance costs may be covered under your shelter allowance if you get income from Ontario Works or the Ontario Disability Support Program. Speak with your case worker to learn more.
Tenant insurance is more affordable than you think!
Affordable tenant insurance options are available. Check for discounts, compare prices, and adjust your coverage to find a plan that works for you. Take time to shop around and ask questions. You might be surprised at how much you can save.
Frequently asked questions (FAQs)
Do I really need tenant insurance?
Yes. Tenant insurance isn’t just a requirement of your lease. It can help cover the cost of property damage or theft. It can also help cover legal costs or temporary housing if you need to leave your unit because of an emergency.
How much does tenant insurance cost?
The cost varies. However, basic coverage can start at around $15 to $30 per month. You can lower the price by looking for discounts, bundling with car insurance, or adjusting your coverage.
What if I can’t afford to pay for a full year upfront?
Many insurance companies let you pay monthly, but it may cost a bit more. If paying upfront isn’t an option, look for a provider with low or no extra fees for monthly payments.
How do deductibles work?
A deductible is what you pay before insurance covers the remaining costs. A higher deductible can lower your monthly payment. For example, if you have a $500 deductible and you make a claim for $1,500 in damage, you will pay the first $500. Your insurance would cover the remaining $1,000.
If you choose a higher deductible, your monthly insurance payments (called premiums) might be lower because you’re agreeing to pay more if something happens. If you choose a lower deductible, your monthly payments might be high, but you’ll pay less out of pocket if you make a claim.
How do I provide proof of tenant insurance to Toronto Community Housing?
Once you receive your insurance policy, let your Tenant Service Coordinator (TSC) know the name of your insurance provider and your policy number. They will keep it on file for you.
