Renters insurance, commonly known as tenant insurance or content insurance, is often overlooked by Ontario tenants, especially since it isn’t mandatory to have, and the majority of landlords don’t require their tenants to have it. While renters insurance is rarely mandatory, it is highly recommended for all tenants. Renters insurance can be extremely useful in times of emergency, covering tenants in the event of loss or damage to personal property, and taking away liability in the event that something should happen to a guest while on the property. Whether you’re a landlord or a tenant, it’s important to understand the importance of having renters insurance.
Allows tenants to easily recover from a major loss
Furniture, clothing, electronics, collectibles, jewelry, toys, tools, and more – all these items can be lost in a fire or flood. Without renters insurance, all of these things will need to be replaced out of pocket – even the least valuable items can add up to a large sum. In many cases, this will mean having to start all over again, replacing all of the valuables and necessary items found in a household. It goes without saying that depending on the nature of the damage, this can be extremely costly.
Renters insurance policies are designed with these disastrous situations in mind, allowing tenants to more easily recover from major property losses, with renters insurance covering a great deal of the household items that have been damaged or destroyed. Keep in mind that some policies carry exclusions or maximum limits on household items, making it important to choose a policy that works for your situation.
Covers additional costs that stem from losses
When a property is damaged by fire or water, tenants are generally forced to vacate the premises until the situation has been resolved and no longer poses any danger to the occupants. This means relocating to a hotel or other short-term housing solution, moving costs, dining out more often due to loss of access to a proper kitchen, and other expenses that will be incurred while living outside of your own home or apartment.
If a tenant has just lost everything within their home to fire or water damage, finding the money and resources to cover the many costs associated with temporarily relocating can be extremely difficult. Having renters insurance will take away the worries of not being able to cover these additional costs, as it will cover things like hotel and restaurant bills, transportation and moving fees, and any other expenses that have resulted from having to be uprooted from your home.
Protects tenants in the event of a lawsuit
Tenants are generally responsible for any damages caused to the property, its inhabitants, and any visitors to the property. All it takes is one single accident for a lawsuit to take place – a visitor who falls and injures themselves on the property will cost you a great deal in medical bills and other costs associated with their injury in the event that you’re found liable. Tenants can also be held responsible and forced to pay for damages that have occurred as a result of things like cooking fires. Renters insurance often features liability coverage that protects tenants in the event that they are successfully sued, covering a large amount of what would have to be paid out, as well as the legal fees incurred throughout the process.
With the amount of money, time, and grief that can be saved through renters insurance, there are very few reasons why all Ontario tenants shouldn’t have it. Anybody who is concerned about the destruction that can be brought on by fires, floods, and accidents should consider looking into getting some sort of coverage – most providers offer various levels of coverage that are suitable to renters in all situations. Landlords who are concerned about these risks should encourage tenants to look into renters insurance. For a few dollars every month, tenants can have peace of mind that they will be looked after in the event of major damage or loss.
For more information about the property management and realty services offered by the experienced team at Highgate Properties, contact us today.