Renting out your basement in Penticton? Taking in boarders? If yes, you’re a landlord. Even if you’re having a friend move in with you temporarily, you should inform your insurance representative in writing before altering your living arrangements, to ensure you have the right coverage. Here are some valuable tips that will help you reduce any risk factors as a landlord:
• Failure to provide full disclosure relating to insured risks may void your home insurance policy.If anything were to happen – for example, ra fire in your re
rented basement – and your insurance provider was unaware of the tenant residing there, your policy could be voided, leaving you without coverage at a time when you need it most.
• Your home insurance policy only covers your property, contents and personal liability for you, your spouse
and dependants. It does not include your tenant’s or boarder’s contents and personal liability. Should a fi re destroy your tenant’s or boarder’s belongings,
you may be held responsible for compensation of that person’s lost or damaged contents if you are found liable for the fire.
• Your property may see new tenants coming and going each year, thereby posing a different kind of insurable risk. It’s your obligation to inform your
insurance provider of any change in risk such as a boarder renting a room in your home.
Here are additional reasons why it’s important to have the appropriate coverage when renting out your property:
- Appropriate coverage covers damage to your property including walls, flooring, fixtures, appliances, heating and cooling
- systems, and furniture (furnished rentals only), subject to the terms of your policy.
- It replaces your lost rental income if tenants must vacate the premises due to damage from an insured loss.
- It covers your defence costs in the event of a lawsuit should tenants or their guests suffer injury or damages on the property.
If you own rental property that you don’t live in, you’ll need a separate insurance policy. Contact us at Underwriters Penticton about the coverage you need.
Source: Insurance Bureau of Canada
