Do Renter's Need Insurance | Tip of the Month | W.H. Williamson & Co. Limited

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Do Renter's Need Insurance

Close to 50% of renters do not have insurance coverage according to a recent survey. The Insurance Bureau of Canada indicates this is especially common among young people, who also fail to appreciate the full value of their belongings. Given the high cost of rent, many renters have roommates for financial reasons, but face increased risks when living with unrelated persons, such as unintentional injury to someone else.

A tenant package provides coverage not only for contents but also tenant’s legal liability. For example, tenants could be liable if their toaster oven causes a fire and affects other units, or if they accidentally leave a tap on in the bathroom and cause water damage to others’ property. Without insurance, the costs would come out of their own pocket.

A tenant’s package also provides for additional living expenses, up to 20% of the contents amount, if a fire or other insured peril occurred, and the building could not be lived in. The coverage would respond to any resulting  extra costs incurred.

Although the Ontario Residential Tenancies Act  does not require a tenant to carry a tenant’s package, landlords do have the right to insist on seeing proof of insurance prior to accepting a tenant or a sublet