As Ontario and other provinces in Canada have been putting more emphasis on higher-density residential development you have likely noticed more apartment buildings going up where you live.
The government of Ontario recently committed to building 1.5 million new homes over the next 10 years. (1)
With part of their plan being to start allowing buildings with up to 4 storeys and up to 4 separate units to be built on a single residential lot (2), it stands to reason that a higher percentage of us will be living in apartments going forward.
So let’s talk about apartment insurance.
GET A FREE APARTMENT INSURANCE QUOTE
IS APARTMENT INSURANCE THE SAME AS HOME INSURANCE?
Not quite but it depends on what you consider “apartment insurance”.
Let’s simplify:
If you own the property (whether it’s an apartment or home), you want home insurance.
If you rent (whether it’s an apartment unit, full home or part of a home – e.g. triplex) then you want renters insurance (also known as tenant insurance, some refer to it as apartment insurance).
So it’s somewhat a case of semantics when discussing the similarities and differences between home and apartment insurance but hopefully the above clears things up.
By the way, if you own the apartment or rental property, you want landlord insurance.
WHAT DOES APARTMENT INSURANCE COVER?
Let’s be thorough here and discuss both meanings of “apartment insurance”.
If you own the apartment:
Owning an apartment is much like owning a stand-alone single-dwelling home when it comes to insurance.
Apartment insurance will cover the unit owner from:
- Most liability risks
- Fire
- Theft (learn how to prevent break ins)
- Flood (if you qualify and your insurer offers this peril)
If you rent the apartment:
When you rent an apartment you’ll need tenants insurance (aka renters insurance) which covers your personal property including:
- Clothing
- Furniture
- Electronics
- Appliances (that you own)
So while the property owner will have the building itself covered by landlord insurance, it’s up to the individual renter to ensure they have renters insurance to cover their possessions. You may be required by your landlord to provide proof of renters insurance to ensure you have liability protection.
WHAT HAPPENS IF AN ACCIDENT IMPACTS MULTIPLE APARTMENTS?
The first rule of thumb for any insurance claim is to contact your insurer, you likely would not have information to contact any insurer other than your own regardless. Your insurer will do their due diligence to determine the cause of the damage (insured peril) and if there has been any negligence by another party that resulted in the damage, be it a landlord or a neighbouring apartment.
If so, subrogation or a possible liability claim against the other party may be in order. This may be the case for multiple scenarios including fire and water damage which originated in a unit outside of your apartment but unfortunately found its way into your space.
RELATED ARTICLE: Condo Insurance in Ontario.
HOW MUCH DOES APARTMENT INSURANCE COST?
Where you live in Ontario can have a significant impact on how much insurance you pay, and this certainly includes apartment insurance costs.
Like most things in life, people who live in more populated cities like Toronto or Hamilton tend to pay more for insurance on average than those living in a smaller places like Port Colborne, Dunnville or Welland.
Other factors that can impact your apartment insurance can include:
- Previous claims history
- Value and size of apartment
- Unique risks
- Energy sources
- Content or Personal Property Limit
It’s best to reach out to an insurance professional to get a quote. We recommend reaching out to several and seeing who feels like the best fit for you.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
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SOURCES
1 – ontario.ca
2 – cbc.ca
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