Why You Required Insurance Of Renters

By Author: Felix Richerd
Total Articles: 30
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One cost that many new renters attempt to avoid is that of renters insurance. Many first time renters simply believe that either a) the landlord's insurance covers the building anyways or b) that it is a waste of money.

Both of these are misconceptions.

The insurance the landlord or property only covers the cost of fixing any damages the building itself may incur. This means that the building insurance does not in any way cover the costs of personal property owned by tenants.

The second misconception, that insurance is a waste of money, is untrue for a number of reasons. The first being that many property management groups will not rent to someone without renters insurance. This is because they want to ensure their tenants are protected in case any sort of damages where to occur. This means that in many cases, in order to rent an apartment, you need to have proof of having renters insurance.

The other, more obvious reason renter's insurance isn't a waste of money is due to the fact that it is there to protect your personal finances in case your property is damaged. Though you may think that your ...
... stuff isn't very expensive which makes it not worth paying for renters insurance, this may not be an inaccurate understanding of the situation. Renters insurance does not just cover the few expensive items you own, it covers everything you own. If there is a circumstance that damages your property, the total cost of replacing items you once owned will likely be far above that of a monthly insurance payment.
Think about how much it would cost to replace all of your clothes, furniture, electronics, kitchenware, and anything else you might own. Being insured protects you from the possibility of having to purchase everything you used to own with money from your own pocket.

If you currently drive a car which is insured, you can usually add renters insurance through the same company at a nominal fee. Other sources of renters insurance can purchased through many of the main banks. Renter's insurance is key to ensuring financial safety that in itself makes renter's insurance worth every penny.
Tenants should be aware of the following:

Rent can increase. A landlord can increase rent, but usually only after a tenant has been living in the residence for a period of 12 months. The landlord must first give written 90-day notice to the tenant. Rent increases can occur in the following situations:

- Yearly increase set by the Ontario Government. The Landlord and Tenant act must approve any increase beyond that unless agreed upon between the landlord and tenant.

- Significant increase in municipal taxes, charges, or utilities has occurred.

- Major repairs or renovations have been done.

Rent can be reduced. There are certain situations where the landlord is required to decrease rent. This includes situations where utility costs have gone down significantly or municipal property tax is reduced by more than the prescribed percentage.

Ottawa apartments rent also you can reduce with discuss your Ottawa agents.

Tenants can apply for rent reductions: this usually occurs if municipal taxes or charges on the property decrease, when a landlord removes a service that was previously provided, or the conditions upon which a landlord increased rent above the guideline are not met.

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