Rent to Own - Who pays Insurance deductible for a insurance Claim?

[Hollis]

I have a rent to own property in Calgary and this summer there was a hail storm that has caused some damage to the roof. The tenant was contacted by a roofing company in the area and the roofing company told him that he could go to our insurance company and make a claim for it to redo the roof. The tenant is now asking me to file a claim for this.



My question is who should pay for the deductible for this insurance claim?



The roof isn't damaged enough that it needs replacing.



Thanks,



Hollis

 

[lanedry77]

Hi Hollis,



Whoever owns the house is typically the one that would pay, but what does the contract you have with your Tenant/Buyer say? The answer is probably in there.





Thanks,



David.

 

[smmcguire]

Hello David



What would your contract say in regards to an insurance claim. the T/B would not have home ins. ,probably just content ins. What is your resolve to this type of issue?



Thanks

Steve

 

[lanedry77]

Hi Steve,



Tenants [or in this case, a tenant/buyer] needs to have insurance on their contents, as you point out. This is so they will still have a bed/clothes/pots/etc if the property burns down.



But the insurance on the building is in place by whoever owns the building, and they would be responsible for the deductable.



There's not really much to put in the contract. If they are renting to own, they're still just renting, so the insurnace claim falls back on the owner.





Thanks,



David.