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When it comes to your finances, the most traditional method may not always be the best for you. For landlords, that might mean knowing when to finance instead of paying cash, and for tenants, it could be seeking security deposit alternatives.

Well, this article focuses on the latter and discusses security deposit alternatives for renters. By the end of this article, you’ll be more aware of your options, the pros, and the cons.

The Purpose of a Security Deposit in a Rental

Savvy property owners often budget for maintenance expenses in their plans. Wear and tear, age-related breakdowns, and faulty appliances happen all the time. However, when it is clear that the renter is the one at fault, they have to pay for the repairs.

Even with a professional property management company attending to a rental, tenant damage is still a high probability. At some point, you’re most likely going to graze a wall or clog a pipe. Thus, to protect their investments, most landlords request that renters pay a fixed fee called a security deposit. The property owner can then easily withdraw from this fund to cover these kinds of expenses. 

What are Security Deposit Alternatives

Security deposit alternatives is a broad term to refer to substitute options that replace a traditional deposit. There are several types your landlord might be willing to accept including surety bonds, lease insurance, and pay per damage. That said, they each operate in their unique way and are often preferred by tenants because they require a smaller financial commitment.

4 Different Types of Deposit Alternatives

1. Surety Bonds

Surety bonds are one of the most popular alternatives to traditional security deposits. One of the reasons they’re often the first option for tenants is that they’re cheaper. For instance, some companies can charge as little as 20% of the usual deposit fund.

In exchange for such a small fee, a company would act as the middleman between you and your landlord. If there’s any damage the third party pays for it, and you can then pay back through installments.

2. Rent Guarantees

Rent guarantees operate similar to surety bonds. However, instead of a company, the tenant gets a co-signer to act as a guarantor. In other words, if there’s any damage, this third-party signatory will step in and cover the repair costs.

This option is often more costly than the traditional surety bonds and costs up to a month’s worth of rent. Also, the qualification process is harder to pass, and accessible to only a few people.

3. Lease Insurance

Lease insurance eliminates the need for surety bonds and other guarantors. It operates similar to standard insurance arrangements, where you pay a fixed premium per month that covers substantial costs down the line. Many landlords are open to accepting this payment method because it means less paperwork for them. Although, the drawback is that the fees are non-refundable.

4. Pay Per Damage

Instead of paying a security deposit upfront and letting your landlord manage it, you can hold the money yourself. Some renters prefer to open a bank account with funds specifically to cover damages, which landlords can bill when necessary. While you might have to hold the same amount as the regular fee, you can easily dispute claims as the money never leaves your account without authorization. Although, getting a landlord to sign off on this deposit method is unlikely.

Pros and Cons of Alternative Deposits

Pros

Avoid Large Deposits

One of the most obvious benefits of alternatives is that it places less financial burden on you. After all, the law allows landlords to charge up to two months’ worth of rent in some states. Since you don’t have to cough up the costly security deposit at once, your bank account can afford more room to breathe.

Lower Monthly Rates

Another advantage of bypassing traditional security deposits is that it means lower monthly rates. For rental arrangements that allow tenants to pay installment fees, erasing such a commitment can be a relief.

Ease of Getting an Apartment

Many prospective tenants lose out on their dream apartments because they can’t afford the security deposit. Despite the rent being within their budget, most landlords won’t sign a lease unless they can get a guarantee against damage. However, since most alternatives are a lot more affordable, you can move into the house you want.

Cons

Damage Fees

Unfortunately, opting for a security deposit alternative does not mean escaping damage fees. Unlike a standard insurance policy, you still have to pay for any tenant-caused damage to the property.

Non-refundable Payments

Another drawback of seeking an alternative is that they’re often not refundable. In other words, after your lease expires you cannot recoup the excess funds you paid. On the other hand, security deposit laws ensure you get the remnants after the landlord has deducted necessary repair fees. Thus, there’s a chance it could be more costly.

Vague Laws

Since security deposits are the traditional standard, they are more regulated. There are several laws at the federal and state levels to protect both landlords and tenants. However, with other options that might not be the case. Companies can introduce hidden clauses in the fine print, which enormously offsets the price of their services. Hence, you have to be on guard when looking for an alternative.

Conclusion

Tenant damage is often inevitable, and a security deposit helps landlords protect their investment. However, some renters find this fee outrageous and thus seek alternatives. Surety bonds, lease insurance, and pay per damage are some of the most common options open to tenants.

They have the advantage of freeing you from large deposits and missing out on your dreams, however, they’re often less regulated. Thus, it would be best to weigh the pros and cons of your options carefully before making a choice.

Canadian law requires that every Canadian who is a vehicle owner must be covered by car insurance in order to drive their vehicle. If you are caught driving a vehicle that is not insured, your driving license could be suspended.

You could also be subject to having your vehicle taken away and paying a significant penalty. In fact, if you live in Ontario, you should know that driving a vehicle without insurance is illegal. Vehicle owners, lessees, or drivers without valid car insurance face penalties ranging from $5,000 to $50,000.

Besides these penalties, drivers may also be subject to higher insurance premiums which could lead to costly long-term consequences.

Read on to find out everything you need to know about car insurance in Canada.

How Does Car Insurance Work in Canada?

Car insurance is comparable with home insurance, except you are getting insurance coverage for your car instead of your house. You will be charged premiums based on the annual cost of insurance that covers your vehicle. You will also need to make monthly or annual payments to your insurance company in return for taking on the risk of your car.

After assembling all premiums from drivers, your car insurance provider will place them in a single pool. The insurance provider then uses that pool to cover the losses of those who file claims throughout the year.

Your contract with your insurance company will usually list the losses that you are covered for. To ensure that you fully understand your coverage, make sure to read your contract before you sign up.

Tpes of car insurance in Canada

Canada’s minimum car insurance requirement varies from one territory to the next. It is important to be familiar with local regulations in order to ensure compliance. For more information, you should seek advice from car insurance brokers to help you find the best policy for you.

In the meantime, here are the three different types of car insurance available in Canada.F

Third-Party Liability Coverage

Third-party liability coverage is the most common type of car insurance in Canada and is mandatory. It protects you from having to pay any damages to another policyholder’s vehicle. It also covers you in the event that someone is hurt by an accident caused by you.

Collision Coverage

Collision coverage covers you from third-party liability as well as from being flung into other vehicles. If you are involved in an accident with another driver without insurance, this coverage will cover you.

Comprehensive Coverage

Comprehensive coverage is the best and most comprehensive of all the coverages, but it can also be the most costly. It covers most of the medical and accident-related damages, but it also covers flooding and theft.

What Affects Car Insurance Costs in Canada?

There are many factors that Canadian car insurance providers use to base their premiums. These include:

• Your vehicle’s brand, model, and production year
• Your place of residence
• Driving history
• Demerit points
• Age and gender

For example, people who live in certain areas that have a history of multiple insurance claims might have to pay a higher premium. This includes neighborhoods that have many collisions and burglaries.

You will be able to get lower premiums if you don’t have a lot of speeding tickets, and you’re a responsible driver. However, you should expect to pay more if there are multiple speeding tickets and if you’ve been in an accident.

As for demerit points, your car insurance premiums won’t be affected by them as much except when your policy expires and your insurance company conducts a background check.

Another factor that can also affect your car insurance cost is your age and gender. Depending on which Canadian province you live in, women pay less in vehicle insurance premiums than men because men are known for engaging in unsafe driving behavior. However, premiums will be lower if you are older, regardless of your gender.

Final Thoughts

It is important to know how much coverage you require and which coverages you should consider adding to your policy. Even though every province has a minimum requirement, it isn’t always enough.

There are many options for vehicle insurance coverage, so it is important to research before you buy a policy. Compare quotes from different providers to find the best car insurance for your needs.

The technology for telehealth changed so dramatically during the course of the pandemic that the potential of digital health care in providing increased access to mental health services has now been made abundantly clear.

Till recently, the biggest health insurance companies in the U.S used to cover only face-to-face therapy, but of late the waiving of certain rules and regulations post-COVID has helped stop this blatant discrimination in behavioral healthcare. As a result, just like in-person therapy, online care has also become an essential component of the healthcare system today.

Moreover, with more and more such platforms cropping up day by day, the signs are that most insurance companies will provide cover for online treatment from now onwards. The change may have been brought about by the coronavirus, but those who have just started to use telehealth suggest that these new norms are here to stay.

Cost and Accessibility of Mental Health Healthcare for Insurance Holders

Online therapy is not much different from traditional therapy in terms of effectiveness and service. Many therapists charge the same amount for online therapy and in-person therapy because essentially they are providing the same service.

Online therapy offers the perfect alternative to connect with an accredited therapist conveniently from your private space. This is especially beneficial for those living in remote areas, are homebound, or where no type of healthcare facility exists.

Most states today require insurance companies to provide cover for mental therapy in exactly the same way they cover a traditional session with a therapist in an institutional setting.

Now, apart from mental health platforms, even the traditional caregivers are willing to counsel clients virtually and are ready to accept insurance as well.

Online Options for Telehealth

There are several ways to choose a therapist for your online therapy sessions:

• The best thing to do is to call your insurance company for a referral for an online therapist or an online therapy platform. You can even ask which telehealth platforms offer behavioral health treatment and the insurance companies which cover it.

• Consult your primary healthcare doctor who has prior experience in working with therapists in your area and then reach out to them for further information on telehealth.

• Browse over the internet to look for reputable online therapy platforms that accept insurance. In our experience, for an app to be effective it should fit with the personal care goals of the user as well as for peer support. Some which are worth a look are:

Amwell: This is a reliable online healthcare platform that accepts insurance, including Blue Cross, Anthem, Aetna, United HealthCare and Blue Shield.

Doctor on Demand: Once you complete their questionnaire, the team of healthcare professionals on their panel match you with the right therapist. All services are in-network and come with many insurance plans.

Talkspace: This platform is best for those suffering from real-life issues like anxiety, depression or any type of addiction. Several leading insurance providers like Cigna and Alliant work with Talk space.

MdLive: With over 60 million members on its network, MDLIVE offers phone and video telehealth services to its users, mostly with same-day doctor appointments. Additionally, the platform is in-network with top insurance companies.

Which Insurance Plan is Better?

Medicare Part-B provides telehealth cover which includes psychotherapy, counseling, and any other medical or health-related service offered by a provider to a user based in a remote location.

The connection can either be through real-time video or audio technology. That said, while most Medicare plans cover telehealth, the coverage varies from state to state and plan.

Once you meet your Part B deductible, you need to pay for 20% of the cost, while Medicare takes care of the rest.

The US Center for Connected Health Policy cites that Medicaid covers in-person, and online individual and group therapy in every state except Iowa, so long as you have the medical prescription and diagnosis for the specific therapy.

What is not covered in Medicaid is career counseling, couple’s therapy, and coaching. Other types of therapies will depend on your plan.

Aetna has plans which include remote counseling or televideo as some people call it. For insurance coverage, you will need to work with an Aetna advocate and your primary healthcare doctor.

Cigna policies cover virtual care which includes online mental health care. They also cover services offered by Talkspace.

Does your Health Insurance Cover Online Therapy?

Cover for mental health services varies from provider to policy. However, the pressing issue is if your current health plan includes online mental health care or not?

A good place to start is to research the website of your insurance provider. This will indicate which online platforms your provider works with.

The next step is to make a phone call to a representative of your insurance company and confirm if online therapy is covered through your specific plan before connecting with an online therapist. If you are covered by an employee-sponsored plan, ask your HR department to handle it.

Find out which resources are available to you in your healthcare policy and ask clearly if telehealth visits are covered and what the copayments are.

Remember, the Mental Health Parity and Addiction Equity Act of 2008 requires insurers to frame the same financial requirements for mental health care and physical health care.

If your Insurance Policy doesn’t Cover Online Therapy, then what?

If your insurance company doesn’t cover online mental health coverage, you may explore other options:

• A sliding scale fee structure can make online therapy more affordable. The rates charged on this scale by the therapist depending on how much you earn. In other words, the less you bring home, the less you pay towards the cost of treatment.

• Get in touch with the mental health care center in your area and find out what they offer. They might offer financial assistance if you are a community member, or if not a more affordable form of therapy through workshops or group sessions.

• Some therapists offer free service, especially for virtual visits. You can try contacting therapists in your area to find out who is willing to extend free online therapy sessions for you.

• Many apps offer discounts and free trials. For example, eTherapyPro does not accept insurance but instead offers a three-day free trial which you can use to decide if online therapy is right for you.

• For free therapy options in your area, you can call the National Alliance on Mental Illness or email them at info@nami.org to get connected to a mental health professional.