Comments on: Tenants Insurance - Worth it? http://www.investingintelligently.com/2006/06/13/tenants-insurance-worth-it/ Not just another (Canadian) financial blog Fri, 05 Dec 2008 12:18:35 +0000 http://wordpress.org/?v=abc By: Dave http://www.investingintelligently.com/2006/06/13/tenants-insurance-worth-it/#comment-786 Dave Thu, 06 Jul 2006 15:37:47 +0000 http://www.investingintelligently.com/2006/06/13/tenants-insurance-worth-it/#comment-786 I am a bit worried about one of my computers catching fire one day. It runs really hot, especially in summer. Oh well, I guess it is the commercial occupancy then... Well I can live with that, it's a nice location and the rent is cheap so I can live with the expensive insurance. I am a bit worried about one of my computers catching fire one day. It runs really hot, especially in summer.

Oh well, I guess it is the commercial occupancy then… Well I can live with that, it’s a nice location and the rent is cheap so I can live with the expensive insurance.

]]> By: David http://www.investingintelligently.com/2006/06/13/tenants-insurance-worth-it/#comment-619 David Sun, 18 Jun 2006 04:34:02 +0000 http://www.investingintelligently.com/2006/06/13/tenants-insurance-worth-it/#comment-619 You are right -- the commercial occupancy is the cause. I experienced a similar expense when I downsized from a house to a similar apartment -- my insurance costs went up, even though I no longer owned a building. I learned from an accountant friend that the premium you pay is due to the claim that will be made against you by the building owner and other tenants, should you cause an "insurable incident." In other words you are paying a large amount because there are other claimants against your behaviour, other than yourself. Hint: keep lit candles away from any combustable materials, or you could be paying for the whole building to be repaired -- it happened six blocks from here; the senior who caused it all did not have enough insurance ($2 million) to cover the repair! DAvid You are right — the commercial occupancy is the cause. I experienced a similar expense when I downsized from a house to a similar apartment — my insurance costs went up, even though I no longer owned a building. I learned from an accountant friend that the premium you pay is due to the claim that will be made against you by the building owner and other tenants, should you cause an “insurable incident.” In other words you are paying a large amount because there are other claimants against your behaviour, other than yourself.

Hint: keep lit candles away from any combustable materials, or you could be paying for the whole building to be repaired — it happened six blocks from here; the senior who caused it all did not have enough insurance ($2 million) to cover the repair!

DAvid

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