Insurance for home daycare in Ontario.

[billf]

Hi everyone,

I have a quick question. My tenants have been operating a home daycare in one of my townhouse units. I think this is a legal use but I am concerned about liability. I have included an advisory in my lease that they have insurance but not an outright demand. I asked for thier policy information and they have refused to give this to me though they say they have it. Can I add a new clause to my lease demanding insurance?

This relationship has soured and if I have to evict due to this I would be willing to do this as well.

Thanks

Bill F

 

[rforgiel]

Bill

This is a tough one as it brings up a lot of issues.
I would talk to your lawyer - does this violate any of the condo rules to the extent you can evict.

Talk to your insurance agent - If something happens to one of the kids will your policy cover what they can not. They may have some policy but when people sue they go after the person with the broadest shoulders. This is usually mean mister landlord. My agent has set me up with a blanket liability policy for $1M which can be applied to any of my rental properties. It was cheap. His example was a client had a renter with a large dog. The dog bit and disfigured a child. Going by the broadest shoulders approach the landlord is being sued and will loose.

The insurance agent will also want to know if business is being conducted on the premises. I had the BlindDeaf foundation want to rent my place. They would put two people in a townhouse and have a worker constantly there. This was deemed a business and the insurance premium on this as with student rentals is significantly more.

Being a townhouse, I am assuming you have a condo board. They may also help to push them out since they are paying the insurance on the structure and would have rules against a business in a unit. My board indicated they would have shut me down in a minute with the DeafBlind foundation.

Depending on the nature of the day care I may be over reacting but your team can set you straight.

Regards,
Ramon Forgiel

 

[billf]

Ramon,

Thanks for your advice, I never considered the condo board and rules. I was hoping there was a way I could demand insurance or add it to the lease, but I guess I will have to go the eviction route unless I am provided with proof of insurance. Again, thanks for your advice.

Bill

Mississauga