5 misconceptions about tenant insurance in Quebec

Tenant's insurance doesn't work the same way as homeowner's insurance. It's less expensive because there are fewer coverages to purchase, but it's still necessary to protect your personal belongings and your liability. Your homeowner's insurance will cover your possessions, your liability, and the physical structure of your house, as well as any private structures, which means there are much higher coverage limits.

Neither home insurance nor tenant insurance is mandatory, but both are necessary to maintain your peace of mind and protect your belongings in the event of a disaster. Many people don't understand the benefits of tenant insurance or seriously undervalue their possessions and believe the extra expense for coverage isn't worth the protection. Tenant insurance can mean the difference between having to pay thousands of dollars out of pocket to replace or repair everything you own and having it covered by your insurance provider. Here are five of the most common misconceptions about tenant insurance in Quebec.

#1: Tenant insurance is expensive.

You can find affordable tenant insurance by requesting a quote from a tenant insurance expert like Panda7. We have access to top insurance companies and can find you competitive quotes to choose from. You can also save money by assessing the belongings you keep in your apartment and reviewing your coverage needs accordingly.

#2: You are not required to purchase tenant insurance in Quebec.

While tenant insurance isn't mandatory in Quebec (unlike car insurance), there are circumstances where your landlord will include it in your policy to avoid liability issues. If you sign a lease where tenant insurance is included in your half of the contract, then yes, you need it.

Your landlords want to ensure that if you cause any damage or personal injury, there will be compensation. They don't want their insurance to be affected if you don't have coverage and their provider has to step in to compensate for the damages. This will impact their future rates if you don't have your own coverage, which many landlords choose to avoid by making tenant insurance a requirement in their lease agreement.

#3: You cannot purchase earthquake protection for tenant insurance in Quebec.

In most Canadian provinces, earthquake insurance is not included. Why? Because few provinces are located in earthquake-prone areas. However, British Columbia and Quebec fall within the "earthquake-prone" zone, and significant events can affect you. Currently, there is a 5% to 20% chance of a major earthquake occurring within the next 50 years.

Some insurers in areas not prone to earthquakes won't even offer earthquake insurance. However, in Quebec, you can purchase earthquake insurance in addition to your tenant's insurance to cover damage caused by this natural disaster. Earthquake damage can range from a few broken tiles to complete structural devastation. Learn about the risks in your area so you can make an informed decision about earthquake insurance.

#4: The landlord's insurance will cover everything. No.

Your landlord has what's called a "master policy" which covers their (or the corporation's) liability as well as the physical structure of the building, common areas, and possibly the structure of your apartment and any original furnishings. Beyond that? That's your responsibility. Your belongings and personal liability are your responsibility, so if you want coverage for these things, you'll need to buy your own tenant insurance policy. Your tenant insurance policy will cover your belongings, even if you're away. Let's say your wallet gets stolen at your local coffee shop—your tenant insurance policy can cover that.

If you want your tenant insurance to cover everything that your landlord's main policy doesn't cover, and sometimes the "main" policy can look a little different than you might expect: familiarize yourself with your landlord's coverage so you can buy your policy accordingly.

#5: If your roommate has tenant insurance, you are covered.

You can share certain things with your roommate, but insurance is generally not one of them. Your belongings are your responsibility, not theirs. So, if something were to happen to your apartment, their belongings would be covered, and yours might not be. Having your own protection means you can get customized coverage for your own things! Also, if tenant insurance is required in your lease, it likely means each individual would have to purchase their own policy.