Tenant insurance is an essential investment for renters, offering protection against unexpected events and damages. However, like any insurance policy, tenant insurance does not cover everything. In fact, understanding what is excluded from your tenant insurance coverage is crucial for ensuring you are properly protected.
In this blog, we will explore the common exclusions found in tenant insurance policies in Calgary and help you understand what you may not be covered for.
Common Exclusions in Tenant Insurance Policies
1. Natural Disasters
While tenant insurance in Calgary covers various types of damages, it typically does not cover natural disasters such as earthquakes or floods. Calgary is known for its extreme weather conditions, including flooding and hailstorms. However, most standard tenant insurance policies exclude damage caused by natural events.
What to Do?
If you live in a flood-prone area or an area with a risk of earthquakes, consider purchasing separate flood or earthquake insurance. Some policies offer endorsements that can add protection against these events.
2. Negligence or Intentional Damage
Tenant insurance does not cover damage caused by negligence or intentional actions. If you accidentally spill something on the carpet or fail to maintain the property safely, such as neglecting to fix a leaky faucet that causes water damage, your insurer may not pay for the repairs.
What to Do?
Taking care of your rental property and being cautious can help you avoid this exclusion. Regular maintenance and proactive care will ensure you are not penalized for accidental damage.
3. High-Value Items
Tenant insurance generally limits coverage for high-value items such as jewelry, art, collectibles, and electronics. Standard policies typically offer coverage for these items up to a certain amount but may not cover the full replacement value. If you own expensive items, checking the coverage limits for personal property in your policy is important. Often, these items require special endorsements or additional coverage.
What to Do?
To protect your high-value items, consider purchasing additional coverage for specific valuables. A rider or floater can provide additional protection beyond your policy’s limit.
4. Roommate or Family Damage
Tenant insurance policies typically cover damage caused by you or your guests. However, damage caused by roommates or family members may not always be covered. This can be especially concerning if a roommate accidentally causes damage to the rental property or loses your belongings.
What to Do?
Communicate with your roommates about the importance of caring for the rental property and your possessions. If you have family members living with you, check your policy to see if they are covered under the liability or personal property sections. If not, you might need to adjust the policy to include them.
5. Business-Related Losses
If you run a home business out of your rental unit, your tenant insurance may not cover damages to business-related property or losses arising from your business activities. Items like office equipment, computers, or inventory for a home-based business are typically excluded unless you have specific coverage for business operations.
What to Do?
If you work from home or operate a business in your rental property, consider getting a separate business insurance policy. This will help protect your business assets and activities, ensuring you are not vulnerable.
6. Pest Infestations
Tenant insurance generally excludes damage caused by pests, including rodents, termites, and bedbugs. This is particularly important for renters in Calgary, where pest issues can be prevalent, especially in older buildings. If your personal property is damaged due to pest infestations, your tenant insurance is unlikely to cover the cost of repairs or replacements. The landlord is responsible for addressing pest problems, but this is not always true.
What to Do?
Ensure that your rental property is properly maintained, and report any pest issues to your landlord immediately. Sometimes, pest control may be covered under the landlord’s insurance or rental agreement.
7. Wear and Tear
Tenant insurance is designed to cover sudden, accidental damages but not regular wear and tear. This includes normal aging or deterioration of the property and its components, such as carpets, paint, or appliances.
What to Do?
It’s important to maintain your property and prevent wear and tear from becoming an issue. Regular cleaning, maintenance, and timely repairs can prevent significant damage not covered by insurance.
What to Do if You’re Affected by an Exclusion
While exclusions in tenant insurance policies may seem like a limitation, it’s important to remember that many risks can be mitigated with the right precautions. For example, flood-prone renters can purchase separate flood insurance, while those with high-value items can add a rider to their policy.
If you encounter an exclusion, it is always best to review your policy and discuss your options with your insurance provider. In some cases, you may be able to add supplemental coverage for specific needs.
Conclusion
Tenant insurance is an invaluable coverage for renters in Calgary, but understanding what it doesn’t cover is just as important as knowing what it does. By understanding these exclusions and taking proactive steps to secure additional coverage, you can ensure that you are adequately protected from unexpected damages or losses.
If you’re unsure about what your current tenant insurance policy covers or if you’re interested in knowing about rental size influencing insurance cost, consider contacting an insurance provider for guidance. At Affordable Quotes Insurance, we can help you find the right coverage for your needs at competitive rates. Contact us today for a quote and ensure your peace of mind tomorrow.