- November 29, 2019
- Posted by: Spencer Smith
- Categories: Insurance, Property
You might think that your landlord’s insurance will cover any unfortunate events that occur in your building. However, as a renter, you’re vulnerable to personal property losses and liable for any harm that may come to your visitors. Renter’s Insurance in Ontario helps you avoid paying for these potential disasters out-of-pocket.
What is Renter’s Insurance?
Renter’s Insurance in Ontario, or Tenant’s Insurance, protects your personal belongings and gives you liability coverage. You’ll have protection for the contents of your home and any potential legal expenses that may arise due to liability issues.
If a guest or their personal property is harmed at your home, they could sue you for negligence. You can even be held accountable for causing unintentional harm to others.
Example 1: Your deep fryer falls over and causes a grease fire in the apartment. The landlord could sue you for damages.
Example 2: Your pet knocks over a candle while you are away and causes a fire that spreads to your neighbors. The neighbors could sue you for damage to their property.
Standard liability coverage offers protection up to $1 million, with the possibility to extend your policy up to $2 million.
Personal Property Protection
You might not think your personal belongings are worth insuring but imagine having to replace them in the event of a total loss. Unexpected hazards, such as fires, windstorms, and robberies, can have devastating financial consequences.
There are two common types of coverage for your personal property.
- All Risks Coverage – This type of protection offers full coverage except for specific exclusions, such as water or flood damage. Some risks will require additional riders to gain coverage.
- Named Perils – This type of policy only covers specifically-named covered perils. Some typical examples include fire, windstorm, hail, vandalism, and smoke damage.
All perils policies offer the most comprehensive protection, and any excluded perils will be named explicitly in your policy document. Named perils coverage will only protect your belongings from the most common hazards, but premiums tend to be more affordable.
Additional Living Expenses
Under some circumstances, your Renter’s Insurance in Ontario may pay for additional living expenses. In the event a covered peril makes your property uninhabitable, you may incur costs while waiting for repairs. Hotel bills, moving costs, and restaurant meals are typically included under additional living expenses. However, these benefits are subject to limitations.
Payouts After a Loss
There are two common ways you can expect to receive compensation after filing a claim.
- Actual Cash Value – You’ll receive the depreciated value of your lost items, or their value at the time of loss.
- Replacement Cost value – You’ll receive the amount of money the item cost when it was new.
The replacement cost value is a better option since it provides enough funds to replace all your lost items. If you choose the actual cash value, you probably won’t be able to replace the lost items.
It’s essential to keep an up-to-date home inventory list. If you buy new electronics, high-end lighting fixtures, custom shelving, or other valuable items, be sure to add these to your list and keep photo documentation. Having visual evidence can help expedite your claims process.
You should also consider that some items are subject to payout limitations. Your insurance agent can help you understand what’s covered under your policy.
What Renter’s Insurance in Ontario Doesn’t Cover
Your Renter’s Insurance won’t cover valuable art, jewelry, family heirlooms, rare books, or other precious items. You’ll have to request special coverage for these expensive belongings.
How Much is Renter’s Insurance?
Insurance companies consider several factors when determining Renter’s Insurance premiums.
- The total value of all the contents in your home
- Location of the home you’re renting
- Construction of the building you’re living in
- Your insurance and claims history
- Previous property insurance
- Your credit score
If you’re considering purchasing a home, having previous Renter’s Insurance can help make your Homeowner’s Insurance premiums more affordable. However, your insurer will also consider your claims history.
To learn more about renter’s insurance, contact the experts at Duliban Insurance at 1-855-385-4226. Our licensed professionals will be happy to answer any questions you have.