Should we get Renter`s Insurance

[Grant_M]

Hi,

My husband and I have just rented our home in Victoria that did not sell recently. We called about getting insurance and one company quoted renter`s insurance. It will cost us another $60.00 annually. Is this a good idea? Do investor`s get renter`s insurance? Any information would be helpful.

Thanks,
Johanna

 

[Mike Milovick]

Hi Johanna;

You want to make sure you are covered in a rental scenario - so advise your insurance broker on what you are attempting to do.
My lease mandate`s that the tenant carry a tenant package - so if they do something (i.e. burn down the property) their contents are covered - but more importantly the liability component of the renter`s insurance should pay my deductible if they were negligent - so I have large deductibles on my properties and save money on the back end.

Mike

QUOTE (Johanna @ Dec 19 2008, 11:22 AM) Hi,

My husband and I have just rented our home in Victoria that did not sell recently. We called about getting insurance and one company quoted renter`s insurance. It will cost us another $60.00 annually. Is this a good idea? Do investor`s get renter`s insurance? Any information would be helpful.

Thanks,
Johanna

 

[Dan_Eisenhauer]

Being direct, for $60 per year, why are you even questioning it? You probably spend more than that for coffee every month.

What will the policy cover you for? Some will cover loss of rental income in case of extensive property damage. Some will cover damage caused by a tenant. Talk with your broker about what is available.

A rental rider will just add an extra layer of protection between you and your tenant. Suppose your tenant invites a friend onto the property and he falls and breaks his neck on the icy sidewalk. If the tenant does not have insurance, the injured party is going to come after you. They are going to name you in the suit, regardless of whether or not the tenant has insurance.

IMHO, rental riders are always a good idea.

 

[Mike Milovick]

Hi Dan;

If tenant does not have insurance, they do not become my tenant. Its as simple as that. This is non-negotiable. I ask my property manager to verify this.

Your sidewalk example is a bad example. Google "court cases and sidewalks in Ontario" to determine who is responsible for sidewalks. The answer may surprise you.

Mike




QUOTE (Dan_Eisenhauer @ Dec 19 2008, 11:59 AM) Being direct, for $60 per year, why are you even questioning it? You probably spend more than that for coffee every month.

What will the policy cover you for? Some will cover loss of rental income in case of extensive property damage. Some will cover damage caused by a tenant. Talk with your broker about what is available.

A rental rider will just add an extra layer of protection between you and your tenant. Suppose your tenant invites a friend onto the property and he falls and breaks his neck on the icy sidewalk. If the tenant does not have insurance, the injured party is going to come after you. They are going to name you in the suit, regardless of whether or not the tenant has insurance.

IMHO, rental riders are always a good idea.

 

[housingrental]

The above post is not correct

 

[Dan_Eisenhauer]

My example may not be completely correct, but its intent is. If a third party is injured on your property, whether or not you invited them onto it, you may be held liable. When someone is getting ready to sue, they often add everyone who is even remotely connected to the situation to the suit, and in my example, that will include the property owner.

While my example may not be strictly correct, what happens if that person is injured on the walkway from the sidewalk to the front door, or falls down some stairs, or has a piece of eaves trough fall off and hit them? That was the intent of my example.

Adam, which post is not correct, and why is it incorrect? An explanation of your thoughts would go a long way to educating the rest of us, and keep us out of trouble.

And, Mike, I am surprised.

 

[Grant_M]

Thanks for the comments. I was referring to renter`s income insurance for an extra 60.00 annually.

If the house had a fire and the tenants needed to move out this would pay for the 2000.00 monthly that we would have gotten from out tenants until our home is repaired.

 

[Dan_Eisenhauer]

I worked for a property manager a few years ago. My first two duties on my first day in that position were challenging. One was a grow-op, which I mentioned in another post recently. The other was a fire in a townhouse that was probably the result of the tenant`s cooking heroine.

As I said above, I think having your premises covered by insurance is an excellent idea. In addition to the two examples above. I have personally benefitted from such insurance when a tenant deliberately smashed walls and appliances after being evicted. That unit was out of commission for about two months, as I recall. But, I lost no rent as a result f the insurance coverage.

 

[wealthyboomer]

QUOTE (Dan_Eisenhauer @ Dec 19 2008, 08:40 PM) I worked for a property manager a few years ago. My first two duties on my first day in that position were challenging. One was a grow-op, which I mentioned in another post recently. The other was a fire in a townhouse that was probably the result of the tenant`s cooking heroine.

As I said above, I think having your premises covered by insurance is an excellent idea. In addition to the two examples above. I have personally benefitted from such insurance when a tenant deliberately smashed walls and appliances after being evicted. That unit was out of commission for about two months, as I recall. But, I lost no rent as a result f the insurance coverage.

Did your insurance rates go up dramatically after making claims?
Were you ever denied insurance, because of making claims?
Did your insurer drop you after making claims, or tell you how many claims would have to be made before they would drop you?