DrealDeel

Hello,

The ongoing fascinating discussion on living costs threw up an interesting point. Renter's insurance appears to be a more commonly purchased item than I would have guessed.

My main concern is about liability issues (am I likely to be sued if someone trips at the front door?) as my few possessions are of little financial value - 2 laptops, an Ipad, a few old-ish clothes and some books!!

My question is do you have it / would you recommend it and why? I should add that the quote for 10K contents and 2 mill liability is $14.60/month so cheap compared to what I'm reading on here....

scrubbedexpat091

I have it. We pay 19 per month for 25,000 for property (lowest they would insure, we have nowhere close to that) 1 million in liability including liability claims due to damage to the building and such.

It also includes temporary housing coverage in the event our place becomes unlivable.

Also offers 100,000 towards legal fees in the event of a liability lawsuit.

It also has some smaller benefits I cant remember off the top of my head.

I got it more for protecting me against liability in case something happens to the unit due to a mistake, like a cooking accident or something of that nature.

tee1

Does the property owners/landlord not have insurance for that sort of thing? In case their house burns to the ground and such

scrubbedexpat091

They have coverage to protect them and coverage for the building, but the liability insurance is to protect me in the event I do something that caused the damage such as a cooking accident.

The owners insurance wont protect me liability wise in that sort of situation and would likely come after me for it.

It's not coverage for the building, the insurance is to protect me and my stuff which the landlords insurance isn't going to do.

Renters insurance is for a lot more then just replacing stuff. I'd never rent not having it.

DrealDeel

Thank you.

Already getting convinced. So this is common practice in Canada? Did anyone have this back in the UK?

BristolUK

When we took insurance on our duplex, the insurance guy was encouraging us to have the tenants get their own insurance for such matters. He said something like "why should your insurance compensate for something that was the tenant's fault and tenant's insurance should cover it?"

Insurance companies keep telling us that premiums go up because of costs (ie claims) so if a tenant floods the place or causes fire damage, what bloody difference does it make whose insurance pays? No claims discounts are piddling matters not worth considering.

In the event something major causes loss of rental income, the landlord can be compensated for that loss, but it doesn't cover the cost of the alternative housing for the tenant, hence the advantage for them to get their own.

Something with a lower contents level than $25k would probably be good.

A lot of rentals include the appliances. I wonder what proportion of tenants have personal stuff in excess of $25K.

Back in England my minimum contents coverage was way in excess of the cost of replacement costs of everything I had including all the furnishings, appliances, electricals, clothes.

Aviator

Liability would be the main reason for many, however if you don't have much in the way of assets, hardly an issue, you cannot sue someone for what they haven't got.

Property owners have insurance for the building and common areas, tenants still have some responsibility. If the building burns down and it is a tenants fault, the building insurance may pay out, but there is always the risk of subrogation to the tennant. The tenant is also responsible for what happens inside the apartment (beyond the threshold).

DandNHill

Subrogation depends on the province. In some provinces they don't subrogate but just consider that it kind of evens out between claims/companies.
I would always take out tenants insurance for the liability aspect. It doesn't just cover you at home either. If you stay in a hotel for example and cause damage your tenants insurance will cover you, anywhere in the world!!!

Aviator

It is not straightforward, but still a risk.

Subrogation Principles

Shirtback

As above. Tenant insurance is mandatory for renting in my province. Property owners' insurance only covers *their* liability & the building. My insurance as a tenant covers my liability & possessions.

Most of my belongings aren't worth much per se, but would be expensive, annoying & time-consuming to replace. My & landlord's insurance covers temporary housing costs if apartment goes up in flames/gets flooded/whatever, which insurance pays out depends on who is responsible for the disaster...

Then there's burglary ... That's covered by my insurance as a tenant.

S

DandNHill

Please note I only said some provinces... This is what I was taught in NS when I took my license exam for general insurance... Can't remember which provinces within Atlantic Canada do and which don't now...