Did you know that there are over 300,000 apartment theft and vandalism cases each year in Canada? Not only that, but 81% of fire and water damage claims are caused by tenants (not the landlord), 24% of residential fires are apartment fires in Canada, and the average apartment fire in Canada costs $100,000. Lastly 25% of tenant related fires start in the kitchen, and the average repairs in Ontario for cooking fires cost over $70,000.
That’s a lot of stats to consider, but our hope is that you reach the conclusion that having proper insurance is crucial. It is essential that we all educate ourselves on the importance of tenant insurance, specifically. Keep reading for commonly asked questions and answers on the subject.
Q: WHY IS TENANT INSURANCE IMPORTANT?
A: Should you accidently cause damage to your unit in any way, such as a fire started by a faulty electrical appliance, tenant insurance can kick in to reimburse you. It’s important to bear in mind that a landlord’s insurance doesn’t cover personal possessions – think of their policy as merely covering the building itself.
Q: DOES TENANT INSURANCE COVER THEFT?
A: Yes. Most tenant insurance options nowadays cover unintended losses, which means not only damage and destruction of personal belongings but also theft. This is especially important if you live in a part of town that generally caters to a lower-income lifestyle. It can definitely be more cost-effective to live in such an area in a secure building. Along with tenant insurance active, you’ll also enjoy peace of mind.
Q: WHAT IF MY LANDLORD HAS INSURANCE?
A: While your landlord’s policy does provide insurance coverage on the building, that insurance is in place to protect the structure and the landlord’s own personal liability in case someone is injured on the property, not your possessions.
Q: WHAT IF I DON’T OWN THAT MUCH?
A: Though you may not think your possessions would present a significant loss to you, take an inventory and you’ll see how quickly the value adds up. You don’t need to have big screen televisions or expensive art and jewelry – books, electronic media, and small kitchen appliances add up quickly!
Q: WHAT IF I AM REALLY CAREFUL?
A: Accidents happen. That’s why we need insurance. Though you may not intentionally injure someone in your home, or you don’t plan on causing damage to a neighbour’s property, there is always a possibility that you could. For instance, if you accidentally leave the kitchen tap on and it overflows into your neighbors’ apartment, you could be found liable for that damage and required to pay for repairs, medical bills related to the accident, as well as defense costs if they bring a suit against you. Having third-party liability insurance will protect you from accidents which could cause damage or injury to another’s property and end your relationship with them if you can’t afford to rectify the damage out of pocket. Tenant insurance also protects you in case of injuries to, or claims by, guests visiting your unit.
Q: WHAT HAPPENS IF I CANNOT TEMPORARILY LIVE IN MY HOME?
A: Your landlord isn’t responsible for paying your living expenses if you can’t continue to live in your home while an insurance claim is being settled or repairs are being made. This includes cases of fire, theft, vandalism, etc. A commonly overlooked advantage of tenant insurance is that, like with home insurance, your provider will help to cover your living expenses while repairs are being made. This will ease the financial burden to you while the claims process progresses, and while repairs are being made.
Q: WHERE CAN I GET TENANT INSURANCE?
A: If you do not already have insurance or would like a quote, you may want to contact StoneRidge Insurance Brokers. They already have the information needed for insurance purposes about our various properties and as such they are able to provide you with a quick and convenient quote. Stoneridge can be reached by phone at 1-844-434-4625 or by email at CLV@stoneridgeinsurance.ca.
Want to learn more about tenant insurance options in Canada? We’re happy to help here at CLV Group, ensuring you can make a well-informed decision regarding your renting plans. Contact our team today, and we’ll be glad to assist in any way we can!
Sources: Insurance Bureau of Canada and Ontario Fire Marshal