Insurance company is demanding that tenants have insurance

[cdh]

Our insurance company has demanded that we enforce all of our tenants to have content insurance. We have to provide them with their policy numbers. If we do not do this then they will cancel our policy. Unfortunately, as per the Ontario Landlord and Tenant Act, we cannot force our tenants to do so. We have been with the company for a number of years, have had a good record and have never put in any claims. Has anyone come across this same issue? How can we fight the insurance company?

Thanks,
Janet

 

[Thomas Beyer]

Consider a different firm.

 

[DonCampbell]

I suggest you speak with a different insurance company.



Park Insurance (Chirs) is great.



Phil Jarvie at Hub is also great



Both of whom understand investing.

 

[invst4profit]

In addition to changing companies I would strongly recommend that you include in your future leases that tenants are required to have and show proof of contents insurance. This is one item that if included in a lease can actually be enforced. It has been challenged in divisional court and won by a landlord.

It is in my lease and I insist tenants provide me with proof of insurance coverage including a minimum of $1,000,000 liability.

 

[cdh]

Thank you everyone for your input.

 

[angelapeng]

We have included in our lease that tenants need to purchase tenant insurance. However, we did have one tenant later challenged us saying that it is optional and not mandatory according to the BC tenancy act. Other tenants have no problem to sign the lease, but always late to provide the copy of insurance policy. Comparing to set up utility account and cable account, the tenant insurance policy is not on their priority list.



Does anybody have better experience regarding enforcing the tenants purchase insurance?



Thanks,

 

[invst4profit]

At the time of screening make it clear that providing of keys to unit is conditional on proof of insurance. This is simply part of requiring first and last or damage deposit, proof utilities are in tenants name etc. Annual proof is required as tenants may simply cancel or allow insurance to lapse. In the end if you can not enforce the policy and assuming it is not a condition of your insurance company it is the tenants loss not yours if their property is damaged or destroyed. The landlord is not responsible for tenant contents unless the damage is through negligence by the landlord.

 

[angelapeng]

Thanks, Greg.



What is most important in the tenant insurance policy is the liability coverage. Many tenants do not care too much about their personal contents. However, if some damages occur due to their fault, such as leaking, fire etc. if the tenants do not have the insurance with liability coverage, the landlord has to cover for that. That is the main concern for tenants not having the policy.