Insurance and potential risk/liability on renting out an illegal basement
If you have a basement in your principal residence that does not comply with fire code (no escape to outside, no fire resistant door etc.), and you rent it out to a tenant. How do you handle the insurance and risks?
Do you tell your insurer about the rental or you just don't tell them?
If you don't tell, and there is a fire, with injury or fatality for the basement dweller (either the tenant or yourself), will they likely reject your claim?
Will you likely be charged as landlord in that case by the City? What kind of exposure are we talking about?
Or most people just ignore these and hope nothing bad ever happen to them?
Do you tell your insurer about the rental or you just don't tell them?
If you don't tell, and there is a fire, with injury or fatality for the basement dweller (either the tenant or yourself), will they likely reject your claim?
Will you likely be charged as landlord in that case by the City? What kind of exposure are we talking about?
Or most people just ignore these and hope nothing bad ever happen to them?