Jane, a young professional who rents an apartment in downtown Toronto, had an incident. There was a leak in the apartment above that damaged her ceiling, carpets, floors, as well as some of her personal belongings. The neighbours above forgot to turn off the water and left the apartment, so it kept running and the entire place flooded. The neighbours had no proper insurance and took the hit of about $20,000 for the damages. Jane walked away with a $1,000 deductible and two weeks of fully paid alternative accommodations. It would have made sense for the neighbour to have tenant insurance because they would only have to pay the deductibles and save the trouble. Jane’s insurance arranged her with a temporary accomodation at no cost while the property underwent repairs.
Water does more damage to homes than anything else out there. It’s the top reason for property loss in condominiums. This can happen even without anyone’s fault due to burst pipes, backed-up toilets, a leaking laundry machine, etc.