LANDLORD &
COMMERCIAL
PROPERTY
INSURANCE

Home insurance is a general term for insurance policies that protect where you live either as the owner or as a tenant. Whether you live in a condo, apartment, townhouse, or house, you’ll need home insurance to protect your home, your personal property, and yourself from liability.

The cost of property insurance depends on many factors including:

• Location
• Claims History
• Building Construction
• Occupancy
• Building Value
• Coverage Options Chosen

No, it’s not required by law, but it may be a requirement of the bank or lender who is financing the purchase.

Yes, it will count as a business expense that reduces your amount of taxable profits.

Yes. Many clients think that there is less risk while your property is unoccupied, but the opposite is true.

Landlord Insurance typically refers to insurance on commercial or residential buildings that are fully rented out whereas Homeowners Insurance is intended for homes that are the insured’s primary residence (some rental activities are allowed).

It’s the same Landlord Insurance but depending on the type of building and intended occupancy, it may fall under personal lines or may be upgraded to commercial lines.

The first thing to do when you have a claim is to contact your broker. They will help you review your coverages and submit the claim to the insurer. After the insurer receives the notice of claim, they’ll assign and adjuster to the case and reach out to you for additional information if necessary.

Be prepared to provide receipts and other documentation to help you substantiate the claim.

This is a growing problem in Canada and in British Columbia in particular with the rapid rise in condo development all over the province. As strata insurance rates continue to rise, many strata councils are increasing their deductibles to offset rising costs.

For example, if you live in a high-rise condo that’s insured for $50 million with an earthquake deductible of 15%, the deductible is $7.5 million. If there are 200 units in the building, owners would pay an average of $37,500 each to cover this deductible.

Luckily, condo unit owners can purchase excess insurance to essentially buy-down that deductible.

Generally speaking, you should notify your insurance company/broker when you make renovations or upgrades to your home under 2 scenarios:

1. If the renovations substantially increase the replacement cost of your home, you should notify your broker to ensure your limits are updated and you have adequate coverage.
2. If the renovations create a material change in risk for the insurer.  For example, adding a pool to the backyard increases your risk of liability claims happening on your premises.

If you’re not sure, I recommend erring on the side of caution and notifying your broker of any planned renovations and upgrades.

Home Insurance is a general term. The type of Home Insurance you’ll need depends on what type of home you live in. If you rent, you’ll need tenant’s insurance. If you own a condo, you’ll need condo owner’s insurance. And if you own a single-family home, you’ll need homeowner’s insurance.