Located halfway between Detroit and Toronto, London is the 11th largest city in Canada. It’s well-known for its educational institution and is home to the University of Western Ontario. With that said, London is truly a hub for education, entertainment, and a great standard of living.
However, in 2018, while the average property prices all over Canada were decreased by almost 4%, properties in London saw an increase in prices. In 2019, the house prices reached its peak in the history of the city when it increased 12% within a year. Due to the rising prices of property, more people who lived in London opted to rent homes instead of purchasing them.
If you’re amongst the majority who are renting a property, then looking into tenant insurance is for you. It protects the tenants from unforeseeable and additional costs such as theft, accidental damage and other similar costs.
Rental insurance becomes a secure way of protecting yourself from any increased costs of living in London. Most people who look into getting tenant insurance are usually hesitant in taking the leap and have many questions regarding it. So we answered some of the commonly asked questions about tenant insurance in London.
What Is Renters Or Tenant Insurance?
Renters insurance is for tenants to safeguard themselves from unexpected expenditures caused by damage or theft of personal belongings. The property, its structure, walls, doors and light fixtures, are all insured by the owner. However, any appliances or personal belongings of the tenant are their responsibility.
In the case of any unfortunate event, the tenant is secured by the insurance, which can cover most losses, such as damage to personal belongings (contents), and hotel bills in the case that the property is inhabitable. Tenant insurance becomes a renters dream to secure themselves against life’s curveballs.
Why Should We Get Tenant Insurance?
The landowners are not legally obligated to compensate renters for any damage or loss of personal belongings. However, any damage caused to the property by the renter should be replaced or paid for by the renter.
For example, if your barbeque grill fire spreads into the house, and of any neighbours, the damage has to be paid for by you as the tenant. This becomes your legal responsibility and can also put a dent in your pocket. However, if you have tenant insurance, you can avoid paying a hefty amount trying to cover damage done to the property, personal possessions, or even the neighbouring house.
How Is Tenant Insurance Different From Homeowners Insurance?
Tenant Insurance is for people who do not own the property they live in, and it can cover the things that are mentioned above. A Homeowners Insurance is for residents of their property, and it can cover the building structure, the walls, fixtures, and their personal belongings. If a homeowner has rented out their property, they only pay for the structure and the building, and the renter remains responsible for their personal belongings.
Different insurance plans for the homeowner and renter offer division of coverage and avoids any mishandling or unfair expenditures on either respective parties.
What Does Personal Property Cover?
Personal property coverage, also popularly known as Coverage C, covers your personal belongings. Imagine the house you live in as a large bowl, the contents that fall out when you tip it upside down, are covered by Personal Property Insurance. From your laptop to your couch, television and even your clothing. These are the types of items that can be covered in Personal Property. However, the handles on the bowl, in the case of a building; all fixtures, walls, floors, et al, are not covered in this insurance.
Is There Any Liability Coverage In Tenant Insurance?
Based on the customized plan that you get, liability protection for you as the tenant is included. Liability can cover you for things like your guest’s medical bills if they are injured on your property or as a result of your negligence. It also includes legal expenses in case legal actions are taken against the renter for incidents that occur in the rented place. This will majorly depend on the insurance plan in place. Legal actions can be very costly to defend hence why it’s important to have proper insurance in place.
It is highly recommended that you include liability coverage to your London tenant insurance to protect yourself against such scenarios.
Who Bears Any Additional Expenses?
If there is an unforeseeable incident in the property that makes it inhabitable for some time, and you need to find another place to stay during this time, these hefty expenses can also be covered by your renter insurance.
Even if the damage is being replaced or repaired, and the expense is being covered by your insurance, having to pay for temporary accommodation can be very pricey. So to have this covered by insurance can soften the blow of an unfortunate incident.
Am I Legally Bound To Get Tenant Insurance?
Unless the lease that you sign requires you to get tenant insurance, you are not legally bound by the law to get it. However, your landlord may require that you get tenant insurance before they agree on renting out their property to you. This clears a common misconception that in case of a natural disaster or any other damage caused to the property, that the landlord would be liable to pay for your personal belongings in the property.
Most landlords strongly prefer tenants that are onboard with the idea of getting tenant insurance as it avoids any problems they may face in the future.
These are just some of the many commonly asked questions regarding tenant insurance in London. Please contact Insurance Hero for more details!