Real Estate

Condo owners who rented it out: Did you still keep home insurance on it?

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  • Apr 29th, 2016 11:14 pm
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Deal Addict
Feb 21, 2004
1584 posts
378 upvotes
Montreal

Condo owners who rented it out: Did you still keep home insurance on it?

For those of you who are condo owners and rented it out, did you keep a home insurance plan on it after your renters moved in?

-Assume no restrictions of any sorts from condo board
-I don't care about the few furniture pieces I left (all old Kijiji stuff)
-Our Tenants have their own renter insurance that covers their own furniture and civil liability


I just called today to cancel it (it was empty before so thats why we had one) and in true fashion, insurance company tried to scare me in not cancelling. They say that even if renters have an insurance plan, i still need one to cover:
-Any enhancements I made in the condo compared to its original form (this will be hard since its an old building built in the 1900s that got renovated throughout the years. I didn't put a single dime in it in past 5 years I lived there)
-Rental revenue coverage up to 10k in case there's something that would force the tenants to be temporarily relocated to a hotel, we would be covered for the lost in revenue.


Trying to figure out if this is a scare tactic and spreading of FUD (Fear, Uncertainty & Doubt) that is classic 101 sales or its something I actually need.


Thanks for the insight
6 replies
Deal Expert
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Sep 19, 2004
26763 posts
9333 upvotes
where I belong
I believe landlord needs his/her own insurance (for other stuff, like liability? or like water leaking causing damage to other units). It should be very cheap anyway

Tenant gets his/her own tenant insurance (for contents INSIDE)
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Deal Expert
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Jun 12, 2007
20807 posts
6623 upvotes
London
What about your own liability?

Say a visitor slips and cracks his head open on the kitchen floor. He sues both you and the Tenant for $2M.

Or a water pipe in your unit breaks and floods the 3 units below and causes $300k in water damage.

The tenant's insurance only covers his liability, not yours
Deal Addict
Feb 21, 2004
1584 posts
378 upvotes
Montreal
Fair enough. It's only 120$ a year and tax deductible, i'll take it

Thanks
Deal Addict
Jun 20, 2011
2095 posts
1083 upvotes
VANCOUVER
Yes, for all my units I have insurance. Tenants are responsible for their own tenant insurance though.
Deal Addict
May 3, 2006
2505 posts
41 upvotes
Milton
Have your own insurance and ensure the tenant gets their own insurance as a condition of lease
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Deal Expert
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Aug 18, 2005
21223 posts
5939 upvotes
Burlington-Hamilton
I see you are in MTL here; my knowledge is based on Ontario, so take this with a grain of salt.

The insurance company is 100% right on this one. The condo corp should have a definition of what constitutes the "standard unit" that their corporate insurance will cover. You need to cover anything like appliances, upgraded flooring, light fixtures, any upgraded doors, windows, etc.

Furthermore, if there is a loss assessment (the condo gets sued) for more than their corporate insurance, the excess cost will be divided up amongst the unit owners. Proper condo insurance will have loss assessment coverage to take care of these events. Additionally, your insurance could become necessary if damage to the corporation or other units comes through flooding, fire, mould, etc that originates in your unit.

Bottom line, I would 100% have the insurance as a landlord. But you must also make it VERY clear to the tenant that they must have their own tenants' insurance. Some tenants somehow think their property is covered by the landlord's insurance.
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