Does Rental Property Need Special Insurance?
When you purchase a property that other people will be renting from you, either nightly or monthly, the insurance coverage needs to include loss of income coverage. Most Buyers have calculated the revenue to afford the property, so if something goes wrong, where will the funds come from to cover the loss of revenue. It’s all great until there is a problem. Whistler insurance agents are well-versed in the potential problems and are ready to offer insurance coverage.
I interviewed an insurance agent at Co-operators Insurance, Whistler. My questions pertained to those Whistler properties that were purchased for nightly rental, or rented out monthly as a tenanted property. Here are the highlights:
1) What is the best type of insurance for a nightly rental property?
This can fall under commercial rooming and boarding insurance. The main benefit to the insured, is the loss of income portion. This is well received by those who have bought the property depending on the income to retain the property. There are several components to this insurance.
2) Does the insurance of Whistler real estate rented to a tenant monthly differ from nightly rental insurance?
Commercial rooming and boarding insurance also applies in this case.
3) How do you determine the insurance fee for a house rented to tenants on a month-to-month lease?
The rate is based on several points, especially the number of people living in the house. However, it is not unusual for us to come out to inspect the property in order to determine the rate. Furthermore, the insurance policy rate stays in place for a year.
4) When tenants are added to the house what happens to the insurance policy?
The rate stays the same for a year. However, there is a reasonable capacity for any house, so the number of tenants should be considered by the owner.
5) What about unauthorized accommodation in a house? Do you have a policy on that?
We are not the by-law, we insure the property.
6) Is honesty the best policy with the insurance company?
Absolutely, tell us everything and we can get you the best insurance protection.
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Next Steps
My blog, Insurance Agent Requires Information offers you details on the documents that need to be provided to your insurance agent. There is quite a lot of administration required to get the best insurance. I suggest you work with a Whistler insurance agent because they have the experience and know what questions to ask you in order to get the best policy.
If you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me. I look forward to hearing from you.
It’s a Good Life in Whistler!
Marion
Marion Anderson Personal Real Estate Corporation
marion@WhistlerSkiinSkiout.com (604) 938-3885