Son is at Uni and flatting in a multi-unit apartment building.
His landlord has insured their apartment ... but have discovered that if the tenants accidentally cause a fire or flood that destroys or damages other apartments then they would be personally liable to cover the cost of repairing the other apartments (even if they are insured by their respective owners).
This means, they need high value liability insurance to cover worst case scenarios (the main reason for having insurance).
I spoke to an insurance company and they said each tenant needs to take out individual contents insurance. But contents insurance generally only offers liability cover for up to 1 or 2 million dollars. Costs could potentially be 10 million dollars or more for large apartment buildings.
So I was wondering what renters do for liability cover in these large buildings?
I might have to ring round some more insurance companies tomorrow.