Let’s say you move into an apartment that you’re renting and you decided to have a house warming party to celebrate your new place. Everything is going great and then one of your buddies has a guest and she slips in your kitchen and smashes her head. You call an ambulance and she’s in the hospital with a very serious concussion. A week later, she’s hired a lawyer and she’s suing you because she claims the kitchen floor had beer all over the place. The fact, she claims, that she informed you and several other of the tenants that someone “could really get hurt here,” and nothing was done just adds to the negligence. And you haven’t secured any condo insurance, visit www.squareoneinsurance.ca.
What are you going to do? Where are you going to come up with the resources to defend yourself? Even if you are completely innocent and even if you don’t have any legal negligence here, you are still going to have to defend yourself. And there is a significant cost associated with this.
Okay, let’s say you don’t have parties…but you do ski. So, you find yourself out on the slopes and the conditions aren’t great. But you’re a pretty accomplished skier so you keep going. Then, you crash into a group of skiers down at the bottom of the hill and end up breaking a leg and collar bone of one of the bystanders. Same scenario here…what if this person decides to sue you?
Everyone often thinks about home insurance and whether or not they need it simply based on how much value they place on the property they own. The largest population that doesn’t actually secure coverage are younger demographics. They mistakenly think that…hey, I don’t own very much…what’s the point in purchasing home insurance. In reality, the things they own and would have to replace in the case of a catastrophic disaster are much more than people realize. Think of the electronic goods, in the form of computers and sound systems that are common place among the younger generation. Lose those and you could be out three to five thousand dollars. And imaging the cost of replacing those designer clothes…and furniture. Again, these costs really add up and it can often be quite shocking when one learns that everything they own is gone and now has to be replaced.
The other thing that has already been touched upon is the liability issue. It’s one thing to have to replace everything you own…it’s another thing entirely to have to fund a legal defence. Or worse, to have to compensate someone because of a legal ruling.
The cost of tenant insurance is relatively small. You can always increase your deductible to save even more money on your premiums. But considering all the risks associated with not getting any coverage, it just doesn’t make sense to go without a proper home insurance policy.