OLA wrote: Premiums are typically based on the value of the contents, and can range from $100 to $500 per year. Luxury items like jewellery can cost more to insure.
this is far more than many tenants struggling to survive can afford.
How much will it cost to replace all of their clothes, beds, sofas and other furniture, tv and stereo and other electronics, the food in their fridge and freezer, their shoes, their kids toys...this list could go on and on and on and on.
How about a real simple calculation for even the cheapest, most frivolous single guy:
5 pairs of cheap pants @ $20 = $100
5 cheap shirts @$20 = $100
2 pairs of shoes @ $50 = $100
socks and underwear = $40
Jewelry (watch etc) =$100
Prescription eye glasses = $100
Hair and body products =$50
Bed = $300
other bedroom furniture = $200
TV = $200
Apart furniture=$500 (couches etc)
Kitchen (forks, plates etc) $100
Food in fridge = $50
(even for this guy there is probably 20 items I am missing ranging from costs of $5-$500) but I am keeping this non-biased.
Now I cannot even imagine someone only owning the items in the list above, not to even mention their exterme low cost, but as I said, I am trying to keep this non-biased. Even with that said there is over $2000 worth of stuff there. Now let's be honest, most would find that list of stuff and its cost VERY LOW and call it garbage that should be thrown out at the dump, but again, keeping this non-biased. This list is for one extremely cheap single guy. So tell me how he will re-purchase all of this?
Like your personal belongings, your landlord's property insurance will not cover any upgrades you have made to your rental—such as better carpets, high-end light fixtures or built-in cupboards. Who will pay for all of that Parker?
Now what if you find yourself in trouble if your party guests get out of hand and cause damage? Get sued, then what? Get chased for the money by courts and such for the rest of your life to pay it back?
What if he is the cause and there is damage to other tenant's stuff or to their physical person? Get sued, then what? Get chased for the money by courts and such for the rest of your life to pay it back?
What about re-location? Where will he live? With insurance they cover the cost.
Here is something from the TD website - look it up yourself.
The pizza delivery person is knocking at your door. You open the door and let him in the hall while you go grab your wallet. As he enters, he slips on your door mat, falls flat on his back and bumps his head. He saves the pizza though, so everything is fine, right?
Now he can't work because of a back injury and is taking you to court! What do you do?
Now there is a pretty good reason to have tenants insurance. You're liable for anything that happens in your apartment. If your landlord doesn't salt the walkway in the winter, that is his negligence, but if you have unsafe conditions in your own living area, you are responsible if someone hurts himself/herself. If the injury is serious enough, you could end up paying damages in court.
Anyone cannot afford to NOT have insurance. You buy it instead of smokes or alcohol. You buy it instead of going to the movies, you by it instead of (insert a want, not a need here).
I pay somewhere around $600 a month in insurance costs (houses, rentals, cars, motorcycle and other various things) I would LOVE to spend it on other stuff, but to not have it would be one of the stupidest moves I could make in my life.