Tenant insurance is not mandatory for renters in Oshawa, but we strongly recommend that you require your residents to have it in place before they move into your property. You can write the requirement into the standard lease agreement, ensuring that it’s in writing and agreed to by your tenants.
Here’s an explanation of what rental insurance is, and why it’s important.
Rental Insurance for Oshawa Tenants
Tenant insurance, also referred to as rental insurance or renter’s insurance, is similar to the insurance policy you have on your home. There’s one big difference, however, which is this: tenant insurance does not provide coverage for the actual building itself because it’s the responsibility of the landlord who owns it.
So, the tenant’s insurance policy will protect their personal property. It also provides protection against liability and gives your renter any necessary living expenses that may be required if a claim is filed and they can’t stay in their rental home.
Most tenant policies are inexpensive and easy to obtain.
Here’s what they tend to include:
Contents Insurance for Oshawa Tenants
The personal belongings of your tenant are covered for repairs or replacement in the event of a covered loss. It might be furniture that gets wet during a flood or electronics that are damaged or stolen. Most insurance policies will ask tenants to purchase a level of coverage that they’re comfortable with. Every policy will have different coverage amounts and limits.
Separate riders are also available if your tenant has some unique items like expensive jewelry, art, or collections.
Liability Coverage for Oshawa Tenants
With insurance, tenants will be protected legally if they get hurt or if they cause someone else to get hurt. Without tenant insurance, they’d be responsible to pay for damages and legal fees associated with any claims or lawsuits that may be filed against the tenant for something that occurred on your property. It could put you at risk too, as the landlord.
Tenant insurance provides peace of mind and financial protection. Most basic policies include at least a million dollars of liability coverage.
Living Expense Coverage for Oshawa Tenants
Unless your tenant is insured, you may have to relocate them at your own expense during a period of time that your rental unit cannot be inhabited. But, with rental insurance, your tenant will have the living expenses they need if they have to move temporarily.
Additional Living Expenses coverage (ALE) will often include meals and a temporary rental or hotel while repairs are going on. This coverage can even be accessed by tenants if something happened in another apartment but affected your tenant’s home. An upstairs shower leak that causes a flood in your tenant’s apartment, for example.
Talk to potential tenants about your rental insurance requirement, and make sure you get proof of coverage before they move in or renew a lease agreement.
If you’re still unsure about how this works or how to enforce your requirement, we can help you. Please contact us at Investor’s Choice Property Management. We provide property management in Oshawa, Whitby, Courtice, Bowmanville, Pickering, Ajax, and communities in the regions of Durham and Clarington.