Renters need insurance: university grad
Last updated Mar 9 2006 08:45 AM AST (being a few years old does not change validity) CBC News
A University graduate facing bankruptcy hopes his story leads to tenant insurance becoming mandatory in Nova Scotia.
Three years ago(22 years ago), Chris Dabrowski, 25(44), was in his last year at Dalhousie University when a fire blazed through the apartment he shared with three others.
The four former roommates are now being sued by their former landlord's insurance company.
One of Dabrowski's roommates accepted the blame because he had left a candle lit in his room and fell asleep. He didn't have tenant insurance, and now has declared bankruptcy.
Dabrowski is trying to avoid doing the same thing and is defending himself. He didn't have insurance either, yet if his parents had been paying his rent, he might have been covered under their policy.
"I was trying to do everything myself, and go through university myself without relying on anyone. Now, because of that, I'm being screwed more," Dabrowski said.
Don Forgeron, with the Insurance Bureau of Canada, said most tenants in Nova Scotia don't have insurance because they don't believe they need it.
"People think, 'I only have a few things, I'm only here for school,' not realizing that the primary purpose you have it is for liability protection," he said.
Dabrowski would like to see tenant insurance be made mandatory. He estimates that a $130-a-year($249 today) policy could have protected him from a lawsuit worth more than $20,000 ($54,936 today), his share of the costs to repair the building.
"The landlord's insurance company, maybe they should make it mandatory, because if they're going to go after the tenants anyhow when something happens, it would save everyone a lot of trouble," he said.
Dabrowski is selling T-shirts to cover some of his legal costs and let other renters know about his case.
End CBC article
The above document, reproduced courtesy of CBC, is the report of the aftermath of a tenancy accident.
After a fire in a rental property, the young tenants, have had their lives greatly affected, many people do not ever recover from bankruptcy.
The insurance company that insured the property is seeking restitution of its damages, resulting in one bankruptcy already and possibly more.
The landlord in the matter has nothing to do with the actions against the tenants and any difficulties such actions may cause, his (or her) insurance claim is complete. The insurer is trying to recover what it paid out from the person they deem responsible.
And its a fair fight (?) giant insurance company versus one person,
Tenant Insurance = backup,
Insurance company Vs. Insurance company.
All Dockrey Apartments leases require tenant insurance
Dockrey Apartments strongly reiterates the advice given in its 'Property rules' and the 'Frequently Asked Questions' for all other tenants to obtain tenants' insurance.
Dockrey Apartments does not receive any commission or fee from any insurance agent or company
Tenant insurance does not reduce or remove any requirement for Dockrey Apartments' or other landlord's insurance.
Dockrey Apartments gains no benefit if the tenant obtains insurance, only the tenant gains benefit.
Please obtain tenants insurance
Insurance: Dockrey Apartments properties are insured for risk and damage to Dockrey Apartments' and third parties' property. Tenants are required to obtain insurance for their own property and liablilty for real or consequential damage.
Tenant Insurance is tailored to the needs of renters, to safeguard their own property, and to protect them from liability incurred. For example, an overflowing tub could easily damage irreplacable personal property of other tenants, or start an electrical fire, and create immense liability.
At Victoria St. 2009, water from a tub overflowing shorted the heat detector in the laundry below, causing a string of false fire alarms, and almost a real fire in the electrical system.
Tenants stood outside in pyjamas on Sunday night while the building was cleared for re-entry, fortunately without fire.
A second alarm at Victoria St, 2018, a real fire, with one apartment burned.
The building at 224 Victoria Street costs hundreds of thousands of dollars, there is lost property of other tenants to consider, accommodation provided to other tenants put out of their homes during reconstruction, your own losses, and your new accommodation.
Tenant insurance is very cheap in comparison.
Why You Need Tenant Insurance
- As a tenant, you are legally responsible for any damage you cause to any part of your building and for unintentional harm caused to others who live in or visit the property.
- For example:
- If your faulty toaster oven starts a fire that damages not only your apartment, but the entire complex, you may have to pay for the damage to your unit and the rest of the complex.
- If someone slips and falls in your rental, you may be held financially responsible for the cost of the injured person's damages.
- If your clothing, furniture or electronics are destroyed by fire or water damage, replacement costs add up.
Rest Easy Knowing What's Covered
- Generally, a standard or basic insurance tenants' policy covers up to $1 million for the amount you'd have to pay someone who successfully sues you.
- Liability coverage also pays for the cost of defending you in a lawsuit.
- You can often increase your liability limit to $2 million.
- Additional living expense coverage pays, in certain circumstances, for any necessary expenses incurred while your apartment is being repaired.
- These include hotel bills, restaurant meals and moving costs.
- This coverage pays for unexpected expenses when you cannot live in your apartment due to a covered loss.
- It is subject to certain limits.
- Contents insurance covers the cost to repair or replace, clothes and most household items.
- Even if you think your belongings have little value, the cost of replacing everything at once adds up.
- So it's important to keep your home inventory up to date.
- Certain items are subject to limits that can reduce the amount payable.
- Understand the limitations and exclusions in your policy.
- Replacement Cost Versus Actual Cash Value
- Ask your insurance representative about a policy that pays for the full cost of replacing what you've lost.
- The alternative is a settlement based on how much your property was deemed to be worth.
- There are typically two types of coverage offered for tenant insurance: all risks and named perils.
- With all risks, all of your contents (except those specifically excluded) are covered.
- with named perils the policy covers only perils that are specifically stated.
- There are typically two ways you can be indemnified, or paid under your policy:
- Read your policy carefully to determine your exact coverage.
- an insurer has the right to determine whether an article is repaired or replaced.
How Much Does Tenant Insurance Cost?
- Cost depends on many things including:
- how much insurance you need
- the location of your dwelling
- how your unit or apartment was constructed
- your insurance company
- Your claims history.
- Shop around or talk to an insurance professional who can compare prices for you.
- You can choose different levels of insurance coverage.
- If you want insurance for all risks versus named perils, your insurance could cost more.
Is insurance compulsory?
The RTA contains this paragraph
In addition to the statutory conditions, a landlord and tenant may provide in a standard form of lease for other benefits and obligations which do not conflict with this Act.R.S.c.401.s.1.8(1)
All Dockrey Apartments leases include the requirement for tenant insurance under this paragraph.
Tenant insurance is compulsory in all Dockrey Apartments properties.
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