Tenant Liability Insurance in Prince Edward Island
PEI's Residential Tenancy Act makes a tenant responsible for undue damage caused by the tenant's actions or neglect, or by a person the tenant permits on the property. Tenant liability insurance can address covered legal liability, but the policy and statutory duty are separate questions.
Key points
Check the signed tenancy agreement and the current insurance policy before applying this point to a personal situation.
Check the signed tenancy agreement and the current insurance policy before applying this point to a personal situation.
Check the signed tenancy agreement and the current insurance policy before applying this point to a personal situation.
Check the signed tenancy agreement and the current insurance policy before applying this point to a personal situation.
Legal responsibility does not automatically mean every loss is insured
The tenancy law determines duties between landlord and tenant. An insurance policy determines whether a particular liability claim is covered, excluded or subject to a deductible or limit.
Guest-caused damage can still matter
The Act refers to damage caused by a person the tenant permits on the residential property. That makes shared living and guest exposure relevant when reviewing liability protection.
Wear and tear is a different category
Ordinary deterioration is not the same as undue damage. A liability policy also should not be treated as a maintenance plan.