Tenant Talk: Think you don't need insurance?
Think you don't need rental insurance? Think again! What if there is damage to the rental unit? Who pays for the broken window or a scorched wall from a small grease fire? To protect against the potential of paying large repair and replacement costs, you may want to consider a tenant's insurance policy.
Tenant's insurance essentially acts like homeowner's insurance. It provides financial protection against theft of personal property and accidental damage to the unit.
Your landlord will likely have coverage for the building itself and may have a policy on permanent fixtures in the home such as carpets, window treatments and appliances. However, your personal property is not covered under your landlord's policy.
Jewellery, art, furniture, electronics, your computer and other valuables will not be protected against damage or theft. Also, if you've accidentally damaged the property or someone is hurt at your home you may be responsible for paying related costs.
Tenant's insurance provides you the money (less the deductible) to replace your property (furniture, clothes, appliances, etc.) if it is destroyed, stolen or damaged.
It also provides the money (less the deductible) to pay for damages to the unit. The policy will specify the types of risks that it protects from such as fire and theft. It may cover injuries that happen to other people or their property while in your unit, damage to an adjoining unit, and may insure your property while it is temporarily away from your unit.
A policy may cover additional living expenses if you need to temporarily or permanently move due to damage caused by an insured loss.
There are different types of coverage. The more comprehensive the coverage, the more it is going to cost. A recent online search returned a quote of approximately $300 per year for a basic protection policy with a $1000 deductible.
Most insurers offer standard protection for the unit and your property against common sources of damage such as: fire, weather damage, theft and some types of water damage.
A basic policy may be extended to protect against all risks. This type of coverage would provide protection against unexpected and odd occurrences including freak weather patterns and faulty workmanship. If you chose this type of coverage be sure to look for risks that are specifically excluded from protection by the policy.
While most insurers combine personal property and unit damage into one policy, some insurers will require two separate policies. A policy to specifically cover your personal property such as furniture, clothing and electronics, and a second policy that covers damage to the physical unit itself.
Finally, many insurers will offer extended coverage to any improvements that you've made to the unit such as the installation of new carpeting or new kitchen cabinets.
Make sure to inquire about the deductible that you're responsible for paying before the insurance policy will begin coverage.
Many items of substantial value such as laptops and Granny's antique pearls may require special coverage due to their value. Ask about the maximum value coverage for a single item, it may be less than the value of the item and need special coverage.
Shop around! Many insurance agencies will try to sell you packages such as a car and tenant combination packages.
If you're living with other tenant's you will likely be able to get one policy to cover everyone's personal belongings, this will reduce the individual cost of the policy.
Be knowledgeable. There are many online insurance quote systems. Before speaking with a company have an idea of what your coverage should cost and which items you are what expressly insured in your policy and if there are risks you want protection from which are inherent to your neighbourhood or home.
This column provides legal information only. If you need legal advice, please contact a lawyer, community legal clinic or the Lawyer Referral Service at 1-900-565-4577.
If you have questions about the Tenant Protection Act, visit the Ontario Rental Housing Tribunal website at www.orht.gov.on.ca or call Community Legal Services, Faculty of Law, University of Western Ontario at 1-519-661- 3352.
Tenant's insurance essentially acts like homeowner's insurance. It provides financial protection against theft of personal property and accidental damage to the unit.
Your landlord will likely have coverage for the building itself and may have a policy on permanent fixtures in the home such as carpets, window treatments and appliances. However, your personal property is not covered under your landlord's policy.
Jewellery, art, furniture, electronics, your computer and other valuables will not be protected against damage or theft. Also, if you've accidentally damaged the property or someone is hurt at your home you may be responsible for paying related costs.
Tenant's insurance provides you the money (less the deductible) to replace your property (furniture, clothes, appliances, etc.) if it is destroyed, stolen or damaged.
It also provides the money (less the deductible) to pay for damages to the unit. The policy will specify the types of risks that it protects from such as fire and theft. It may cover injuries that happen to other people or their property while in your unit, damage to an adjoining unit, and may insure your property while it is temporarily away from your unit.
A policy may cover additional living expenses if you need to temporarily or permanently move due to damage caused by an insured loss.
There are different types of coverage. The more comprehensive the coverage, the more it is going to cost. A recent online search returned a quote of approximately $300 per year for a basic protection policy with a $1000 deductible.
Most insurers offer standard protection for the unit and your property against common sources of damage such as: fire, weather damage, theft and some types of water damage.
A basic policy may be extended to protect against all risks. This type of coverage would provide protection against unexpected and odd occurrences including freak weather patterns and faulty workmanship. If you chose this type of coverage be sure to look for risks that are specifically excluded from protection by the policy.
While most insurers combine personal property and unit damage into one policy, some insurers will require two separate policies. A policy to specifically cover your personal property such as furniture, clothing and electronics, and a second policy that covers damage to the physical unit itself.
Finally, many insurers will offer extended coverage to any improvements that you've made to the unit such as the installation of new carpeting or new kitchen cabinets.
Make sure to inquire about the deductible that you're responsible for paying before the insurance policy will begin coverage.
Many items of substantial value such as laptops and Granny's antique pearls may require special coverage due to their value. Ask about the maximum value coverage for a single item, it may be less than the value of the item and need special coverage.
Shop around! Many insurance agencies will try to sell you packages such as a car and tenant combination packages.
If you're living with other tenant's you will likely be able to get one policy to cover everyone's personal belongings, this will reduce the individual cost of the policy.
Be knowledgeable. There are many online insurance quote systems. Before speaking with a company have an idea of what your coverage should cost and which items you are what expressly insured in your policy and if there are risks you want protection from which are inherent to your neighbourhood or home.
This column provides legal information only. If you need legal advice, please contact a lawyer, community legal clinic or the Lawyer Referral Service at 1-900-565-4577.
If you have questions about the Tenant Protection Act, visit the Ontario Rental Housing Tribunal website at www.orht.gov.on.ca or call Community Legal Services, Faculty of Law, University of Western Ontario at 1-519-661- 3352.
