Tenant Insurance

[Tootse]

If your tenant causes a fire that burns down your property (or causes other less major damage), who`s insurance covers it? I thought it was not possible to have my policy cover it. I thought this is something that we require of tenants. This is what I was told by my insurance company, but another landlord just recently told me something different. Again, I`ll ask the experts here to clarify.

Tootse.

 

[brentdavies]

You should ask that question to your insurance broker.

Bottom line, you own the property. If it is a single family residence, or you own a multi family structure, not condos, then you are responsible for the fire insurance.

Your insurance will then go after who ever caused the claim for monetary damages.

If it a strata or condo, then the condo association carries the fire insurance, in most cases unless you have a bare land condo.

Ask the local expert, your insurance broker for clarity. Important to read the exclusions page, the most telling page in the entire policy.

In a perfect world, every tenant would have insurance to cover their issues.

 

[Pheenix]

Hi
You have a good answer already.

I would add that I ask that tenants have tenant insurance, with sufficient liability amounts and periodically ask for proof of coverage. However, there is nothing from preventing them from cancelling or defaulting on it, and I have building insurance as the owner.

 

[Mecheng]

Just wanted to add a caveat about condos, which it to be sure you understand what your condo board insurance policy covers and doesn`t cover.
You are the owner of the interior space and as such may be responsible for any damages to it.
Example your condo has an upgraded Kitchen, a fire destroys the cabinets with no structural damage to building, who pays?
This can vary from policy to policy so be sure to protect yourself in the absence of adequate coverage.