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Once you decide to become a landlord Home Owners Insurance may not be the right product
for you. You should consider Commercial Landlord Insurance as you add each additional property.
- Under the basic principles of utmost good faith you must disclose the fact that you
rent out to tenants, to the insurance co. What is the motivating factor for you to be
a good Samaritan? If you breech this principle of acting in
good faith, meaning not hiding material facts or in this case not telling,
- the insurance co. will have no obligation to pay your claim if the building is destroyed
by any peril.
(ie. You rent out to a tenant and the tenant accidentally burns down your house while cooking,
the insurance co. discovered that you rented it out and did not tell them, they may not
pay for the damage) This is called Denial of Coverage based on Non Disclosure.
- Most insurance companies' homeowners insurance will allow you to add one rented house (providing
it is not rented to more than 1 family) and up to 2 condo units (again provided it is
not rented to more than 1 family)
- Student Housing (or rooming house) is an entirely different issue and must be insured
on a commercial insurance policy
- If you have what is clearly a commercial rental property (ie. rented to business or
a multi unit apartment house), beit a for five or six plex then it must be insured properly
under a commercial insurance policy.
Work with full time professional people that will explain and help develop a detailed comprehensive
and thorough Insurance plan for you
Call me at 905 565 5565