During your rental search, you may come across a landlord who requires you to show proof of tenant insurance or content insurance before they’re willing to rent you the condo.
If you’re new to renting a home, you may not be familiar with tenant insurance and how it protects you. A homeowner is required to pay for home insurance when they own a home, but this only covers the property you live in and not your personal items or whether you cause an accident. If the place you’re renting is broken into or there’s a fire that leaves your possessions damaged, tenant insurance will cover the cost of it.
When you rent a place, you become legally responsible for any damage you cause to the property and also if someone is hurt while they visit the property. For example, if someone is injured in the place you’re renting through a slip and fall, your tenant insurance can help protect you in a liability lawsuit if you are held responsible for a victim’s injuries.
Tenant insurance can protect your items in the event of fire or lightning damage, windstorm or hailstorm, frozen pipes that burst and theft, but it won’t help with business pursuits, professional services or bodily injury or property damage that is intended by the person who’s insured.
There are two types of tenant insurance you can purchase: all risk and named perils. If you purchase all risk tenant insurance, this will cover all your items, except for those you choose to exclude, during any event, while if you purchase named perils, this insures your items in the event of specific perils that you name.
There are also two ways that insurance companies can cover the cost of your items, actual cash value or replacement cost. The insurer will determine whether an item should be repaired or replaced.
With basic tenant insurance, if someone files a claim against you and succeeds, you will be covered for up to $1 million that you need to pay out, which also includes the cost of hiring a lawyer to defend you. Tenants can choose to increase this amount to $2 million and there’s an option to pay for additional living expense coverage, which if the place you’re renting needs to be repaired, it will cover the cost of moving, hotels or meals out during the time of the displacement, within a limit. This helps you handle any unexpected costs you’re faced with if you’re unable to live in your rental property.
Tenants can have peace of mind that insurance will help cover the cost of their items in the event of an unfortunate incident. Keep your home inventory up to date and don’t be afraid to shop around for a tenant’s insurance policy that suits your needs. http://rentingtoronto.com/should-you-get-tenant-insurance/ http://rentingtoronto.com/should-you-get-tenant-insurance/ http://rentingtoronto.com/should-you-get-tenant-insurance/Carefully read through your policy to understand what you’re entitled to since some items can lower the amount you may be paid. Understand which items have limitations or exclusions placed on them in your insurance policy.
Visit Renting Toronto for listings on available places for rent in Toronto. Before looking for a place to live, first have a good idea on what you want to look for. Our company has been in the business of placing competent, qualified tenants in owners and landlord’s properties since 1999 and owners have the final say on all prospective tenants.