Thursday, 11 September 2014

Tenants' Insurance

Recently, notices were posted in the lobbies that Capreit requires us to carry Tenants' Insurance. Questions were posed whether or not one could be evicted for failing to carry the insurance. The short answer is no. But it's not that simple. 

Say, for example, your toaster catches on fire. It is your responsibility to pay for the damage that ensues. You may have the funds to pay for all the damage, and by all, I mean ALL. If there is smoke, water, or fire damage anywhere in the building as a result of your fire, you are on the hook for the costs. The likelihood of causing significant damage through an accident is small, but it is still there, and this is where insurance will help. If you fail to produce the requisite funds, Capreit is entirely within its rights to begin eviction proceedings, and they will most likely be successful. 

While it is ultimately your choice whether or not to carry insurance, PVTA highly recommends that you do. It's a small investment with a big return should the unthinkable ever happen!