Insurance-Who Should Have It?

 What insurance do I need?

It is up to a landlord/owner to insure their rental property against any damage, either through accident or otherwise. That insurance will usually be for the benefit of the landlord only.  A tenant should arrange insurance to protect their contents and liability for damage to the landlord/owner's property.

Advice for Owners:

•  Make sure your insurance covers the premises and that the cover is for a rental property. The Uniform Landlord Tenant Act (ULTA)   requires you to pay the insurance premiums charged for that insurance.
• Check exactly what it is covered by your policy. Some insurers offer special landlord insurance cover that includes issues to do with the tenancy (e.g., vacancy periods, damage by the tenant, etc)
• Talk to your insurance company about their requirements for making claims. Most insurers require landlords to prove they have conducted a thorough tenancy selection process and have conducted regular property inspections before honouring damage claims.
• You may also choose to insure any chattels in the property that you own and that are listed in the tenancy agreement.
  Any damage to them will not be covered by the tenant’s contents insurance.

Advice for Tenants:

You need insurance. Your landlord’s insurance policy does not protect your belongings.

Under the ULTA, tenants are liable for any damage they, or their invited guests, cause intentionally or carelessly. Even if you are not named on the tenancy agreement, you should have a:

•     contents insurance policy to protect your belongings
•     personal liability policy to protect you from any careless damage you or your invited guests may cause to the property.

If an insurance company pays out a landlord for damage and believes that a tenant is liable for that damage, the insurance company may seek compensation from the tenant. Personal liability insurance may protect you in this situation.