Renting a property has its advantages; especially when it comes to upkeep and repairs. Generally, the landlord of the property handles these expenses, shouldering the financial burden of owning a property. But when it comes to property damage, many people misinterpret landlord responsibilities.
For example, did you know that in the event of a fire or flood in your unit, you are responsible for replacing your own property? According to the Insurance Bureau of Canada, many tenants get this wrong.It’s a common misconception that the landlord is on the hook for any property that sustains damage in a rental unit. And due to this misconception, many tenants fail to get the insurance coverage they need.In fact, as of 2020 in Canada, one study showed that 34.5% of renters did not have rental insurance. For those who don’t, when disaster strikes it can be devastating.
Whether it’s a flood in the basement or a fire in the kitchen, accidents happen. And crime is a fact of life; in 2019 in BC alone there were 28,759 break and entry offences.
In the event of an incident, you are responsible for replacing your broken or missing items. And for many tenants, the cost is higher than they may think. For those without insurance coverage, it can be a crushing financial blow.
If your unit sustains damage and you are at fault, you can be liable. And it happens; a pan catches fire on the stove or the washing machine floods.
Whatever the situation, the landlord can choose to file a lawsuit against you to pay for the damages. And if you don’t have insurance, paying that out of pocket can hurt.
Many renters don’t think about potential lawsuits; the chances of them happening are just pretty low. Yet there are so many things that could go wrong on your property, leading to a third-party lawsuit.
Most of us have people over to our homes. But did you know that in the event of an incident, you could be liable for damages if a guest sustains an injury?
Let’s say a friend is over and he or she trips over an area rug, breaking an arm in the fall. If they sue, you could be required to pay damages. Situations like this don’t happen often; but when they do if you’re not protected it can be life altering.
If you have tenant insurance, your policy covers the cost of any damages. Legal fees are also covered, and that includes paying a lawyer to represent you in court.
The average policy in British Colombia is $26.00 per month, which means affordable peace of mind.
Several things can factor into the cost of coverage, including:
A standard tenant insurance policy will cover up to $1 million, but you can choose to extend that amount to $2 million.
Covers all property except any items specifically excluded in the policy.
In the case of an incident, contents insurance covers the cost of replacing any missing or damaged property.
Helps cover expenses like moving costs, a hotel room and more if you have to leave your rental place while it is under repair.
Helps protect you financially if you cause accidental damage to property not owned by you or unintentional bodily injury to others.