Tenant insurance: the hidden costs of fires and floods

View part two: “Eight ways to find affordable tenant insurance”. 

No one wants to think about fires or floods in their home, but they can happen to anyone. As a tenant, everything you own in your home could be at risk. This article explains what you could lose in an emergency and why having tenant insurance is important.

Take a moment and look around your home.

Look at your couch, your bed, your TV, and your phone plugged into the charger.

Open your closet. Think about your coats, your shoes, and your clothes.

Now think about your kitchen. The food in your fridge. The groceries in your cupboards. Your microwave, your kettle, and your dishes.

If you have children, think about their things: their backpacks, shoes, clothes, books, and toys.  

If you use medical equipment, mobility devices, or take medication, think about those too. Like your wheelchair, walker, medication, and supplies.

Now ask yourself one question: 

"If a fire or flood damaged your apartment tomorrow, how much would it cost to replace everything?”

Most people underestimate it.

• A couch can cost $700 or more.
• A bed and mattress can cost $500 to $2,000.
• A phone can cost $400.
• A laptop can cost $800 or more.
• A TV can cost $400.
• Groceries for a family with children can easily be $800 per month.
• Clothing for one person can be in the thousands.

When you add everything together, you might realize your belongings are worth $20,000, $30,000, or even more.

And that does not include the cost of staying in a hotel if you must leave your apartment. Hotel stays, meals, laundry, and transportation can add up quickly. Even a short week away can cost hundreds or thousands of dollars. 

Emergencies don’t always start in your unit

Fires or floods don’t always happen in your apartment. A pipe bursting in the unit above you, or a kitchen fire next door, can force you to leave your home while repairs are being made. Your belongings may still get damaged by smoke, water, or leaks.

How can you make life easier and get help with these costs?

Tenant insurance can protect you, even in these situations. It can help replace your belongings and pay for temporary housing or meals while you’re away. 

Malik’s mobility story 

Malik uses a power wheelchair to live independently. One night, a fire started in a neighbouring unit. Smoke filled the hallways and forced him to leave his apartment for several days. His wheelchair charger and medical supplies were damaged by smoke and water. 

Without tenant insurance, replacing these items would have cost him thousands of dollars. His insurance helped get his equipment replaced quickly, so he could continue living independently.

Priya and Andreas: family with school-age children

Priya and Andreas have two children. One night, while getting ready for bed, one of the children left the bathroom tap open and flooded their apartment. Their kids’ backpacks, tablets, school supplies, and clothes were damaged. The family had to stay in a hotel for a week while repairs were made. They were also found at fault for the water damage.

Tenant insurance helped cover:

• replacing clothing and school supplies
• hotel stays and meals
• laundry and daily essentials
• the cost of the accidental flood damage

The children were able to keep up with school. Priya and Andreas didn’t have to worry about how to pay to replace everything. The hidden costs they did not expect were thankfully covered by their tenant insurance. 

Jasmine didn’t have insurance

Jasmine never thought she needed tenant insurance. Then one morning, a neighbour accidentally dropped a lit cigarette on her balcony and started a fire. The smoke and water damage in her apartment ruined her electronics, all her furniture, and clothes. She had to stay in a hotel for several days and borrow money from family to replace her belongings.

She says, “I didn’t know I needed insurance until it happened to me. I wish I had it sooner.”

Tenant insurance could have helped cover the costs and made those days less stressful.