Renters insurance crucial in situations like Westcourt Place, insurance expert says

More than 200 Westcourt Place residents are looking for another place to stay this week after city and health officials have said they can't return to their homes for another few days.

A fire broke out at Westcourt Place Tuesday morning, starting in the parking garage. Problems with electrical systems will keep them out of their homes for about five days. 

Some residents, like Jaret Chalmers, said they've been able to find temporary accommodations with friends or family — but others like Khushdeep Singh said they've chosen to rent rooms from local hotels. 

Pete Karageorgos, director of Ontario consumer and industry relations with the Insurance Bureau of Canada, said a situation like this is a good reminder of the importance of renters insurance.

Both Chalmers and Singh said they don't have renters insurance. 

"Renters insurance is the insurance people need if they're renting a place," said Karageorgos. "It covers their belongings, liability, and additional living expenses."

Renters insurance generally covers emergency accommodations, which may be subject to caps or limits on the number of days.

"It reimburses you for your expenses for a hotel, for meals," said Karageorgos. "It's always best to keep documentation, receipts, for anything you're [paying] out of pocket."

The fire at Westcourt Place started in a parking garage — so depending on what optional coverages people might have under their auto insurance policies, repairs to their vehicles may be covered.

"It's not mandatory coverage, like injury coverage," said Karageorgos. "These kinds of damages, coverage is optional.'

Renters insurance varies by policy, Karageorgos said usually there's coverage for damage from fire or smoke for belongings in apartment units. 

"The interesting thing is that there's no power in the building, so it's unsafe to live in the units. Because of that, that would trigger additional living expense coverage," said Karageorgos. 

Residents were given a small window of time to access their units Wednesday evening, as well as a brief window Thursday afternoon.

Personal renters insurance doesn't cover damage to the building, unless the tenant is not liable for the damage. A property owner policy would have to pay to rebuild any structural damage including to walls or ceilings.

Karageorgos said renters insurance is typically inexpensive, depending on how much your belongings are worth.