The September 24, 2010 apartment fire in Toronto, which displaced about 1200 residents, is a wake up call for tenants who think they are living "risk free". Aside from the protection afforded to personal belongings and liability under a typical "tenants package" policy, the "additional living expense" protection would have looked after increased living expenses such as may have been required to live comfortably elsewhere for a couple of weeks while access was prohibited. Read on courtesy of the Insurance Bureau of Canada.
For one, as a tenant you are liable – yes, legally responsible – for any harm you cause to any part of your building and to others who live or visit there. Yikes! If your faulty toaster oven starts a fire that damages not only your apartment, but also the entire complex, you may have to pay out a lot of money.
You could even find yourself in trouble if your party guests get out of hand and cause damage.
Then there are your possessions. You might not think that you have much of real value, but what if you had to replace them all at once, due to fire or water damage?
Replacing your clothing, alone, could run you a few thousand dollars.
And that old couch and bed might not look like much, but buying new ones would be hard on the wallet.
When you consider what it would cost to replace everything, monthly insurance premiums may look pretty good by comparison.
One more thing you might want to think about: Talk to your insurance representative about getting an insurance policy that will pay for the full cost to replace what you've lost. The alternative is a settlement based on how much your old stuff was actually worth, given that it was old.
The Insurance Advisors @ Guthrie Insurance Brokers Ltd
Toronto – (416) 487-5200 Richmond Hill – (905) 313-8481
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