Insurance...Denied!

[mar]

Hello to everyone,

My wife and I recently purchased a new primary residence, a beautiful brownstone duplex, downtown Kingston. The property was previously a student rental, but we are renovating and plan to occupy one of the units. The other unit is leased to 3 wonderful post grad students, who chose to live off campus to avoid being disturbed while studying.

I called my insurer, TD Meloche Monnex, to inform them of our new insurance requirements. We are claim free and have had an excellent relationship with them for close to 15 years. We have several single family dwellings insured with them and our automobile insurance as well. They have denied coverage because of the student rental suite and are considering it to be a "boarding house". They require my primary business in order to continue with the rest of my portfolio. My policy renews in 2 weeks!

I am more than a little frustrated as this is a very busy time for me. Insurance shopping is not high on my "things to accomplish this summer" list. Couple this with a call centre customer service model and the inability to speak to the same agent...and being in the middle of a move. I would love to hear from someone that has inside experience in the insurance industry, or any recommendations on brokers/insurers that have reasonable rates...TD is certainly affordable. I have holdings in Ontario only and am now based in Kingston.

Thanks in advance,

Marcus

 

[RedlineBrett]

Meloche monnex doesn`t do rentals. That`s it, full stop.

I had a large portfolio with them as well and when I moved out of my primary and wanted to turn it into a rental they wouldn`t do it. I dangled three properties, two vehicles and a large contents policy in front of them and they wouldn`t budge on it.

I`d start shopping for a different insurer... they can move pretty fast so your two week time frame is likely enough.

 

[mar]

QUOTE (RedlineBrett @ Jul 9 2010, 01:15 PM) Meloche monnex doesn`t do rentals. That`s it, full stop.

I had a large portfolio with them as well and when I moved out of my primary and wanted to turn it into a rental they wouldn`t do it. I dangled three properties, two vehicles and a large contents policy in front of them and they wouldn`t budge on it.

I`d start shopping for a different insurer... they can move pretty fast so your two week time frame is likely enough.

Thanks Brett.

Update, got a call back from Meloche informing me that I am insured until Dec., so that`s a relief.

Meloche will add up to 5 rental properties to your policy providing you have your primary residence with them. Singles for sure, not certain about "plexes". They have a micro enterprise division that handles larger properties.

Did you find similar rates with a new insurer? I`ve shopped around in the past and found that Meloche`s rates were very good.

Marcus

 

[RedlineBrett]

QUOTE (mar @ Jul 9 2010, 12:18 PM) Thanks Brett.

Update, got a call back from Meloche informing me that I am insured until Dec., so that`s a relief.

Meloche will add up to 5 rental properties to your policy providing you have your primary residence with them. Singles for sure, not certain about "plexes". They have a micro enterprise division that handles larger properties.

Did you find similar rates with a new insurer? I`ve shopped around in the past and found that Meloche`s rates were very good.

Marcus

Seems they have changed their policy from a couple years ago then.... they lost a lot of my business and a tonne of future business by refusing to take rentals a couple years ago.

Melloche was really good for automotive policies. Rates for my owner-occupied were pretty comparable to the co-operators whom we use now.

 

[housingrental]

Give Van Allen insurance in Listowel a call
They can likely help

 

[RCrein]

HUB International covers student residences with rates and coverage improved for REIN members. Don has used them and recommends. Be prepared that student rentals carry a higher price tag. Call Phillip Jarvie at (800) 263-2383. Good luck with your renos and rentals.

 

[JimWhitelaw]

QUOTE (RedlineBrett @ Jul 9 2010, 11:15 AM) Meloche monnex doesn`t do rentals. That`s it, full stop.
That`s odd. We have three rental properties insured with Meloche Monnex. They are fully aware of the rental status and other than requiring notice and modifying coverage during vacancies, haven`t been any hassle to deal with. Our policies provide coverage for lost rental revenue due to an insured loss. We had a fire at one of them last fall; TDMM was OK to deal with regarding the claim. We also have our primary residence and several vehicles insured with them.

 

[terri]

I have a triplex with td meloshe monex. They are fully aware of the rental status. It is through my jv partner who has their principal residence with them as well. We were told they would do up to 5 properties as long as you have your principal residence with them. That was 2007, so I`m not sure about any new rules.

 

[spearcy]

That`s odd. I just took possession of a duplex in June--I will also be living in one unit and renting out the other--and I got insurance through Meloche Monnex. I wonder if it`s the student tenants that are the issue? I do remember them specifically asking me if I`d be renting to students. I responded that I would rent to whoever was the best applicant and that seemed to satisfy them.

That being said, did you request to talk to a supervisor? The front-line person I was dealing with insisted my property was uninsurable since one unit had 60amp electrical service (instead of 100amp), even though I had an electrician lined up to upgrade the service the day after closing. I asked to be transferred to a supervisor and that issue was easily resolved. Make sure you`re actually speaking to a supervisor though! I got transferred through a couple front-line people before they escalated my call.

Shannon

 

[spark1]

QUOTE (RedlineBrett @ Jul 9 2010, 11:15 AM) Meloche monnex doesn`t do rentals. That`s it, full stop.

I have three rental properties with Meloche Monnex. They are fully awear of rentals and even cover rental loss in case of a claim.

BTW, investors who with Meloche Monnex, do you have a bronze or silver package? i have a silver and thinking to switch to bronze. Your ideas?

spark

 

[RedlineBrett]

QUOTE (spark1 @ Jul 12 2010, 12:31 PM) I have three rental properties with Meloche Monnex. They are fully awear of rentals and even cover rental loss in case of a claim.

BTW, investors who with Meloche Monnex, do you have a bronze or silver package? i have a silver and thinking to switch to bronze. Your ideas?

spark

Ok so I called meloche monnex to find out what the heck was going on with what the girl told me when they wouldn`t take my policy. This was about three years ago that I parted ways with them. I dug up an old statement and asked them about my file and everything. They did tell me they insure rental properties now and always have. So for all those posters that have gone out their way to point out my innaccurate post thanks and that`s for you

However they wouldn`t keep my policy if they didn`t have my new owner occupied property. So same problem as the OP. They also say they won`t insure past 5 properties. The girl told me "They don`t do rentals" meaning they don`t cater to people with a bunch of rental properties but are ok with mom and pop types with a handful of them. Therein lies the confusion.

Sooo... when I started to buy property I knew I would eventually have more than 5 and need a commercial policy. So I went with co-operators for all my new rentals. The rates were higher at the beginning but it makes more sense the more you add as you can spread your liability across your whole portfolio rather than carry it with just one.

When I was shopping for a new owner occupied melloche couldn`t match the policy I was being offered by co-operators for home insurance + contents. I guess when you carry a commercial policy they take care of you on the personal side. but I would have been fine keeping the insurance on the condo (was a piddly policy for contents only... basically insuring my appliances) so I waived bye-bye to melloche.

I hope that helps clear it up a bit.

 

[DonCampbell]

I suggest you get a hold of Phil Jarvie at Hub Insurance. He will solve the issue with you. He`ll also be at the Toronto REIN Workshop Tonight (Juky 13th) so bring your details.