Ontario Apartment Insurance

Apartment Insurance

An apartment is a great place to live when you're living alone or with a significant other. It's much less expensive than an entire house, much easier to maintain due to its smaller size, and still provides you with everything you need to get through your day-to-day. Also, renting means fewer headaches since you don't have to worry about all the legal liabilities and obligations that come with owning a house. Whether you're downsizing, leaving home for the first time, or just moving to a place that's better for your current circumstances, the allure of a small, easily kept place to yourself is enticing. 

However, you might be wondering what happens if something goes wrong. You don't have home insurance, so does that mean you don't have the secondary protections of home insurance, such as contents insurance and liability insurance? Luckily, you have apartment insurance there to help you. 

What Is Apartment Insurance?

Understandably, the idea of apartment insurance can seem strange to someone who is new to the idea. Since apartments aren’t traditional houses; there doesn't seem to be a need to insure anything. After all, the apartment is your landlord's responsibility, right? Well...yes and no. 

Firstly, yes, the apartment itself is your landlord's responsibility, so you don't need a home insurance policy to protect that. However, there are other things home insurance provides that you won't be covered for. These include personal liability insurance, contents insurance, and insurance for additional living expenses. While your landlord almost certainly has this in their landlord insurance policy, contrary to the common tenant's insurance myth, your landlord's coverage won't protect you in areas you need it. In the event of a fire, for example, damages your apartment, your landlord's insurance will cover the property damage. However, if your personal belongings are damaged and/or you must live somewhere else for a few months, you're on the hook for a lot of money. If you have apartment insurance, also known as tenant insurance or renters insurance, your insurance provider can reimburse you for your damaged personal belongings, as well as the cost of renting elsewhere for a short-term solution.  

Who Needs Apartment Insurance?

Anyone who resides in a rental property can use the protection of apartment insurance. This is because apartment insurance can give you a level of financial protection that you might not even know you're exposed to. You might think that something like car insurance would be the only protection you need, but you almost certainly have some possessions that would cause financial hardship if they needed to be replaced. You're also exposed to having to pay any legal fees if someone chooses to hold you liable for an incident, even if the claim is baseless. Apartment insurance coverage protects a policyholder from these possibilities. 

Why Do I Need Apartment Insurance?

As mentioned, apartment insurance can provide protection to your most valuable possessions, protect you in liability cases, and reimburse you for needing to adjust your temporary living situation if your current home becomes unlivable. However, there is more to it than that. Many landlords might reject a renter who doesn't have the protection of apartment insurance. You never want to face the heartbreaking situation where you were turned down from your dream apartment due to the fact that you didn't bother to get apartment insurance. 

Is Apartment Insurance Mandatory?  

Legally, no, apartment insurance is not mandatory. However, not having it will likely close many doors. Some landlords will make it mandatory for each of their tenants, meaning that you won't be able to rent out some specific apartments if you choose not to have apartment insurance. Forgoing the protection of apartment insurance also means that you won't be protected in liability cases and that your most valuable possessions will be exposed to damage. If you need a temporary living situation, you won't be able to be reimbursed for rent for your temporary place of living. Although there is no legal penalty for declining to have apartment insurance, there are still financial risks involved that make the security of apartment insurance worth the investment. 

What Does Apartment Insurance Cover?

Rental apartment insurance can cover a series of very specific things. These coverages include personal property, additional living expenses and liability, voluntary medical and property damage, sewer backup, and overland water. Some of these protections are included by default, while others are optional coverages that ensure protection from a wider range of perils than a base plan. If you would like to know which level of protection is right for you and get personalized coverage, it is best that you speak with your Morison Insurance broker. 

Personal Property Coverage

Personal property coverage, also known as content insurance, protects your valuables from insured perils, such as fire and theft. You may be required to have a home inventory list to ensure that all items are tracked properly and that they are all properly appraised for their correct replacement costs. Some items will require their own specialized types of insurance, such as watch insurance or fine art insurance. If you would like to know which items are insured by default, how you can protect others, and which perils they are protected against, it is best that you speak with your Morison Insurance broker. 

Additional Living Expenses Coverage

Additional living expenses insurance, also known as ALE coverage, will provide protection in the event there is a covered loss and you are unable to live in your current dwelling and need a short-term place to stay. If your home becomes unlivable due to an event such as a fire, you will need temporary housing, and this requires you to pay additional costs like rent for your temporary location, as well as the costs of moving. If you have apartment insurance, additional living expenses coverage will cover these costs for you, making this very stressful time of your life much more manageable. 

Liability Coverage

Personal liability insurance is designed to cover you in the event someone takes legal action against you, holding you responsible for something that happened to them. It is included as part of your apartment insurance plan by default. For example, if a guest suffers a bodily injury while visiting your apartment. Depending on the specifics of the situation, they might claim that you are the party to be held responsible for their injuries and take legal action against you. If this is the case, liability coverage will cover all the legal costs you would normally incur, regardless of whether these charges are legitimate or completely baseless.  

Voluntary Medical And Property Coverage

There are points where you might feel obligated to cover accidental coverage, even in the event that you are not held liable. Perhaps you're visiting a friend and accidentally cause damage to something they own. Instead of taking legal action against you, your friend knows that the damage was relatively minor and understands that it was an accident. As a result of this line of thought, your friend chooses to let it go, not press charges, and cover the incident themselves. You can choose to cover the cost for them without accepting any charges involved in being held legally liable. Note that this also applies to tools such as lawnmowers borrowed from others, minor medical claims, and intentional acts dealt with by those 12 years of age or younger who live in your household. Voluntary medical and property provides additional coverage needed in this situation. 

Sewer Backup Coverage

This type of coverage is often overlooked, as people think they don't need it for an apartment. Maybe they don't think they need it if they rent, or perhaps they think they're enough stories up, and it doesn't matter. However, these assumptions would be false. It's possible that the pipes will get clogged, blocked, or overflow, which would impact the water within your building. If this happens, any damage that happens to your personal items would need the addition of sewer backup coverage to prevent you from having to pay to replace them out of pocket. 

Overland Water Coverage

Overland water coverage is an optional coverage designed to protect you from the possibility of flooding. Similar to sewer backup coverage, overland water coverage will protect you in certain situations. It turns flooding from excessive rain and nearby bodies of water into an insured peril, allowing things like your contents insurance and additional living expenses coverage to kick in during situations where they otherwise wouldn't. Having this level of protection is especially important if you live near a large body of water or if you are on a lower floor of your building. If you want to find out if overland water coverage is right for you, please speak with your Morison Insurance broker. 

What Is Not Covered By Apartment Insurance?

Sadly, apartment insurance doesn't cover every single thing that could go wrong with your apartment. Even if you go beyond having the standard named perils coverage and instead go for extra comprehensive coverage, there will still be items not covered. Even all-perils coverage, contrary to what its name suggests, doesn't cover everything. Some situations where your apartment insurance will not cover you include: 

• Damage done intentionally by the property owner. 
• Damage due to wear and tear over time. 
• Damage done due to poor maintenance by the policyholder. 
• Certain natural disasters, such as earthquakes, might not be covered. 
• It should be noted that although it does cover your immediate family living with you, it does not cover roommates. 

It is important to remember that this is not a complete list of items not covered by apartment insurance. If you would like to know more about what apartment insurance is unable to compensate you for, please speak with your Morison Insurance broker. 

How Much Does Apartment Insurance Cost?

Apartment insurance is relatively inexpensive, considering the coverage it can provide. Usually, for less than $60 per month, apartment insurance is much less expensive than home insurance and provides many of the same protections. However, it does not have a set cost due to the wide range of factors that could impact it. Two different insurance companies will almost certainly give the same potential client two different quotes. The factors that could impact an apartment insurance quote include the following: 

• The location of your apartment. 
• The level of coverage you desire, as well as any additional coverage you desire. 
• Whether or not you have roommates. 
• Your credit score. 
• Your claims history. 
• The age of your building and how well-maintained it is. 
• Safety precautions taken by both the tenant and landlord. 
• The length of time the policyholder has been insured. 
• The number of occupants. 

Please note, however, that this is not a complete list of factors that could impact your apartment insurance quote. Please contact your Morison Insurance broker if you would like to know more factors that could impact your apartment insurance quote. 

How Can I Lower The Cost Of Apartment Insurance?  

With all the factors that could potentially impact your apartment insurance quote, you might be thinking that there must be some way you can lower it. Luckily, if you have enough ingenuity, there are things you can do to get a slightly lower quote. They include the following: 

• Increase your deductible. 
• Avoid making claims on small losses to keep your claim history clean. 
• Remain insured for longer to gradually lower your quote. 
• Increase your credit score. 
• Bundle it with your car insurance. 

Please note that this is not a complete list of things you can do to lower your apartment insurance quote. If you would like to know more ways you can do so, it is best that you ask your Morison Insurance broker, and they will be happy to let you know. 

What Is The Difference Between Apartment And Home Insurance?  

The differences between apartment insurance and homeowners insurance mostly come down to the difference between owning and renting a dwelling being lived in. While both types of coverage can compensate for contents, liabilities, and additional living expenses, as well as insuring against various other perils if the policyholder desires, there is a difference. Home insurance will provide protection to the home being lived in, while apartment insurance doesn't protect the rental unit, as that is the responsibility of the landlord. 

What Is The Difference Between Apartment And Condo Insurance?

Condo insurance and apartment insurance might seem to have a lot in common. However, as with home insurance, condo insurance also covers something that the policyholder owns. It is also important to note that condo insurance policies also assist in insuring the condo corporation for the common areas inside the condominium building, such as the lobby, stairs and amenities.  

Where Can I Buy Apartment Insurance?

You can get an apartment insurance quote at Morison Insurance. Morison Insurance has been providing custom coverage options and assisting clients with insurance claims and packages for over a century. With 5-star coverage, you are safe with us. Fill out the form below or call us at 1-800-463-8074 to get started with your apartment insurance or other type of personal or commercial insurance. 

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.