RENTING OUT YOUR PRIMARY RESIDENCE

Insurance Bureau of Canada encourages Canadians thinking of renting out their homes, in full or in part, to contact their insurance representatives to make sure their home insurance provides adequate coverage and that no exclusions apply to their specific situations.

RENTING OUT YOUR PRIMARY RESIDENCE

A major sporting or cultural event is coming to your city. You decide to rent your home to visitors for a few weeks and take a holiday. When you return, you discover that a burglary has occurred and your jewellery has been stolen. You call your insurance carrier to make a claim. Are you covered? Answer: Your homeowner’s policy was designed specifically for you, and sold to you with the expectation that you, the owner, would reside in the dwelling. Some policies may not permit you to rent your home to someone else, even for a short period of time. Before you rent your home, or even a portion of it, check with your insurance representative to determine how such arrangements may affect your insurance coverage.

SUBLETTING YOUR APARTMENT

You rent a small apartment downtown. You are planning to travel overseas for an extended vacation. With your landlord’s permission, you sublet your apartment to a friend of a friend. When you return, water damage from an overflowing toilet in your unit has damaged not only your apartment, but the apartment below. You do not have tenant insurance, and you were not in the country when the damage occurred. Are you responsible? Answer: Many tenants do not realize that they are responsible for damage that they cause to any part of the building in which they live or for damages caused to others who live in the same building or to visitors. Therefore, even if someone else causes damage while subletting your apartment, you may be held responsible because you are the one who signed the lease or rental agreement. To adequately protect yourself, you should first purchase tenant insurance. In addition, you should explain to your insurance representative that you intend to sublet your apartment for a short period of time.

RENTING OUT YOUR SECONDARY RESIDENCE

In addition to owning a home in the city, you also own a summer cottage. Normally, you use the summer property, but this year you decide to rent it out. You find some suitable renters online. One morning, one of your renters accidentally starts a grease fire in the kitchen. Fortunately, no one is seriously injured, but your cottage is gutted. You phone your insurance representative to make a claim. Are you covered?