What Is Renter’s Insurance?
Whether you live in an apartment, condominium or home, having renter’s insurance is a sure way of protecting yourself from financial risks associated with claims and liabilities. There are many myths surrounding renter’s insurance, and based on these myths, some renters make the mistake of not insuring their dwelling place.
In this article we will consider renter’s insurance and how it applies to you based on whether you live in an apartment, condominium and home.
Renter’s Insurance: Why Do I Need It?
Insurance coverage is there for you when you least expect it. In Canada, the three most common causes of financial losses for those renting are due to fire, flooding or liability suits. And since we simply can’t predict the future, renter’s insurance is a good way of mitigating the financial losses you can encounter after an emergency.
Consider the following Canadian statistics:
One quarter of all residential fires in Canada happen in apartments.
The average cost of repair to an apartment after a fire is $65,000.
In 2007, Ontario had 1,650 apartment fires resulting in losses over $55 million. In all of Canada, these losses were over $185 million.
In 2014, 125,000 cases of break-ins were reported by renters, while cases of theft from rental properties were around 248,000.
Renter’s Insurance: Apartment and Condominium
One major myth about apartment and condominium insurance is that if your landlord has insurance coverage for the building it also applies to your living space. This is simply wrong! Renter’s insurance is separate from your landlord’s building insurance. A landlord insures their property and is protected from financial losses if the damage was to occur to any part of the building outside of the walls of your apartment or condominium.
This applies to damaged piping, cracked foundations, or a leaky roof. A landlord will not replace your belongings or pay out damages to you in the event of an emergency that affects your place: this is what renter’s insurance is for.
Also, renter’s insurance only protects the person listed on the policy along with their belongings. If you live in an apartment and condominium with roommates, each person is responsible for insuring their own things.
Another important aspect of renter’s insurance is liability coverage. Assume that someone has fallen and injured themselves in your apartment or condominium. The financial losses can be significant to you as a renter, considering the thousands of dollars spent in lawyer fees alone. Coupled with a successful lawsuit against you, liability coverage can protect you from having your finances virtually wiped out.
Renter’s Insurance For Those Renting A Home
Generally, home insurance covers the building and the belongings inside of the home. Whether it is the roof, or a smart television in the basement, home insurance coverage protects the outside and inside of a home. But what if you are renting a home, do you still need renter’s insurance? The answer is yes.
As mentioned above, a landlord is responsible for the structural components of the dwelling being rented and not the belongings on the inside. As a renter in a home, it is best advised for you to invest in renter’s insurance in order to avoid financial losses from risks such as fire or flooding. And although renter’s insurance is not mandatory in Ontario, it is simply common sense to have it.
If you would like more information or are looking to insure yourself as a renter, please contact us today and we will be there to help you.