do you need tenant insurance in nova scotia? here's what renters should know
3 minute read
onlookers watch as halifax regional fire crews knock down a fire in an eighth-floor suite in the park victoria apartment building on saturday. the insurance bureau of canada says all renters should have tenant insurance to several reasons.
tim krochak
/
the chronicle herald
insurance. as the phrase goes, it’s better to have it and not use it than not have it and need it.
that is as important for tenants in apartments as it is for people who own their own home, says the insurance bureau of canada.
in recent months, there have been several instances in which tenants without insurance in rental properties across the province have suffered a major loss because of fires that started in their own apartment, or because a fire in a neighbouring apartment or building spread to theirs
that has left many people struggling to find new or temporary places to live and trying to replace clothing, personal belongings and furniture on limited budgets.
so what is it that makes tenant insurance so important and how easy is it to get? here’s what you need to know.
i don’t have a lot of belongings. do i really need tenant insurance?
absolutely, says anne-marie thomas of the insurance bureau of canada.
“if you had to replace everything because of a total loss, such as a fire, you’d be surprised at how quickly things add up,“ thomas said.
i still think i could replace what i have fairly easily. is it really necessary?
there’s a lot more to think about than just what you have lost personally, thomas says.
“if you have a kitchen fire in your apartment and the smoke travels down the hallway and causes some damage to other apartments, or if the fire spreads, the insurance companies representing other tenants or the building’s owner may come after you personally to recoup what they pay out in damages.
“the landlord can sue you for repairs they have to make because of your accident,” she said.
if you have tenant insurance, that would be covered.
besides the material loss, tenant insurance can also cover additional living expenses, which may be needed for things like clothing, a hotel, food and other items if you have to be out of your residence because of a fire, whether or not it was in your unit.
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and, even if the damage was a result of someone else’s error in your building, thomas said it is better for your insurance company to look after your losses and go to someone else’s insurer to cover those costs rather than you trying to do that yourself. it could be a long process before you see any cash to cover your losses or expenses.
i’m very fire safe, what if this is a risk i still want to take?
fire isn’t the only thing to worry about, thomas said. flooding because you left water running, or someone coming in and tripping over your pet and breaking a limb, can still open you up to legal action and financial liability.
in the case of flooding, damage could extend to multiple apartments near and below you.
halifax regional firefighters knock down a fire in an eighth-floor suite in the park victoria apartment building in halifax on saturday.
tim krochak
/
the chronicle herald
if another person’s insurance company is trying to recoup losses from you, there is also a possibility they could put a lien on any property you own, or may own or later if they have won a judgment against you, thomas said.
“it’s something that can haunt you forever.”
i really don’t think i can afford insurance
it’s not as expensive as you might think, thomas said. you can probably get tenant insurance for about $50 a month at the high end.
thomas says that may seem like a little to some people and a lot to others, “but the question is, can you afford not to?“
she said that policy will cover just about everything except sewer backups, which requires additional coverage.
do landlords make having tenant insurance a condition of the lease?
that is becoming the norm, says kevin russell, the executive director of rental housing providers nova scotia.
he said landlords will ask tenants to prove that they have insurance when signing a lease and prove that they still have it when they renew.
doesn’t the landlord just cover the cost of insurance claims?
no. they don’t want to have to absorb the loss through their insurance company.
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“the insurance company will pursue the tenant, and if that tenant doesn’t have insurance, then the liability falls to the insurance company to pay out, and then insurance rates go up, and that’s something every landlord wants to try to avoid,” russell said.
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