As a tenant, do you ever wonder why you need to get tenant insurance or maybe you think it’s not necessary since the landowner or the strata already has insurance? If so, you are not alone; this is a common misconception in tenants.
Although it is true that landowners and strata corporations have insurance, it only covers the structure of the building, common property and common areas. It does not cover tenants, their belongings, and/or third-party liability.
Think of tenant insurance as protection for your belongings and your actions. It’s all about analyzing risks and measures to mitigate those risks. Having tenant insurance is not only to protect your personal belongings. For example, what if there is a flood in your suite; imagine being unable to stay at home and having to find alternative accomodations due to your unit being flooded. A lot of people are surprised to learn that unless you have property tenants’ insurance, you would need to cover the additional expense of replacing your damaged property as well as the cost of the temporary accommodation. Having this in your tenant insurance would not only give you peace of mind but would also potentially save you a lot or money. So to summarize, it is not the Landowners responsibility to find you accommodation during the repair process. Their responsibility is to complete the basic repairs.
Another crucial aspect of tenant insurance is liability coverage. For example, if someone gets injured in your home, you could be personally liable for any injuries. You are responsible for the actions and negligence of your guests and co-occupants when they are in your home. This may all seem overwhelming, but don’t worry—it’s easier and cheaper than it sounds. Get in touch with an insurance provider (ask us for recommendations) to learn more about how you and your belongings can be protected.
If you are a Landowner and have tenants, we suggest you make it a condition to have tenant’s insurance before you rent your place; to the surprise of many this is not a basic RTA requirement. Ensuring your Tenants have proper coverage will provide more security for your investment and make it a better process overall if something were to happen.
At Custom Realty, we have experience representing landowners and tenants. Contact us for more information in how we can support your investments needs.
Your Investment. Our Priority.
* Please note in the above article, we use the word Landowner as an equivalent term to Landlord*
