26
Mar
2017

Contents insurance

March 26th, 2017

Contents

Just starting out on your own or adapting to a new life style, insuring your possessions is an important step. If you were to take a little time to do a quick inventory of your clothing you’d be surprised at quickly the cost of items can will add up. For starters have a look at your shoes. Most people have at least three pair and at $75-$100 per pair the costs can escalate quickly. Throw in the costs of dress clothes or even jeans and you’re starting to look a t a significant shopping bill if you had to replace a number of articles and we haven’t even talked about your home furnishings. Contents are insured on a replacement basis, so there is no depreciation taken into consideration. Policy deductibles are commonly $500 or $1,000 for people with no insurance history. You can save premium by choosing a higher policy deductible

Liability

More importantly than content coverage, tenant policies also includes liability insurance. This insurance protects you against legal rulings that may find you liable for your actions and subsequent damages.

An apartment fire that you may have caused because you didn’t properly dispose of smoking materials or your barbecue ignited your balcony are just two examples of how you could be liable for damages. These costs could include assessing you for the actual remediation/demolition and rebuilding of the property’s owner, damage to the other tenants' property, their additional living expenses, plus emergency responders associated costs.

You would be correct to think the insurers of the apartment and other tenants would pay for their losses, but if you are legally liable for causing the damage, these same insurers will launch legal action against you to recover their costs that were paid out. The liability covers more than costs associated with property loss. Protection against bodily injury claims that were attributed to your negligence as are also included. The simple act of speeding around a supermarket with a loaded cart, and knocking down and injuring a senior may result in a lawsuit being launched against you. Your coverage does include defence costs a well as the costs of any successful court awards.

Additional living expenses

As was mentioned earlier if you can’t live in your place because there was a fire, smoke or water damage, to name a few loss sources, your policy includes a provision for paying for your normal living expenses while you place is being repaired. There are limits to this coverage and coverage ceases once your place is tenable again or you choose to move elsewhere.

 Flexibility

Contents value can be increased anytime, especially if you make a large purchase. The insurance policy is also portable. This means even if you purchase a condo or home or move to a new location, you can take your policy with you and there will be no gaps in coverage while you make your move to your new place. Your policy can be amended to your specific needs.

Better still, if you don’t have any claims after three years of continuous insurance, you can earn a discount on your premium. This discount of course can be considerable when a home is purchased.