Whether you already make a profit with your rental or it’s a long-term investment for your retirement, your financial planning relies on it. That’s why you must protect it properly. Rental insurance can help with this, but not all rental insurance is equal. Read 5 examples where our product helped our insureds to care for their property. Often water is the source of landlords’ problems; know more about water damage by reading our article.
5 examples why you need insurance for your rented property
1. Absentee landlord suffered water damage in his rented condo
Our insured lived more than a 15-hour flight away from his Montreal rented condo. His 17-year old hot water tank leaked and caused damage in his unit but also to the common areas of the 11 unit apartment building. While we promptly paid the damages done in his unit; the insurer of the Condo Association paid for the emergency costs and damages caused to the common areas. As the Condo Association agreement clearly states that the all co-owners are liable for damages arising from his fault or negligence; the Syndicate’s insurer sought subrogation. It meant they sought to recover from the responsible party (i.e. our insured) the money they paid out on top of the $10,000 deductible that the Condo Association had to pay. Obviously, it all added up to a very significant amount. Thankfully for our insured, those costs were covered too under the Liability portion of the contract.
APRIL is one of the rare insurers to accept absentee landlords.
2. A fire kitchen caused by a negligent tenant
Our insured’s tenant left the kitchen unattended whilst cooking which subsequently resulted in the stove fire. The fire damaged the stove and upper range-hood and caused smoke damage throughout the rental. The tenant couldn’t live in her home for a month during the repairs. We paid to our insured the emergency costs, the loss of 1-month rent under the Rental value protection, the cost of repairing the kitchen and of cleaning the smoke contamination and the replacement of the stove under the Personal property coverage. The tenant was negligent so we are seeking subrogation. The damage amounted to tens of thousands of dollars. Without renters insurance, the tenant could be in serious financial difficulty.
That’s why at APRIL, we will always suggest you to ask your tenants to have their own renter’s insurance.
3. An attempted break-in foiled by the tenants
Late one night, some burglars tried to break in to our insured’s rental. His brave tenants managed to scare off the perpetrators. While nothing got stolen, the robbers damaged the back door and frame with their crowbar. We hurried to replace the door to secure the rental so our insured was reassured that his tenants were safe again in their home.
It was a good example of a good landlord-tenant relationship, read 10 tips to build one with our tenants.
4. A severe windstorm caused trees to fall and shingles to blow off
A whole neighborhood in QC was severely affected by a summer storm last year. As a result, two trees fell on our Insured’s garage causing damages to the electrical housing which led to a power outage in the rented property. In addition a section of asphalt shingles of the rental were lifted off by the strong winds. The opening led to a water infiltration on the ceiling’s drywall. The insured was a very proactive landlord: he immediately contacted an electrician to complete repairs and also had a roofer provide an estimate for the portion of roof that was damaged. We reimbursed him these expenses and paid for the repairs.
In all of APRIL’s landlord insurance packages, we cover damages caused by hail and wind storms.
5. Sewer backup from the rental’s basement toilet
The sewer backed up in the downstairs toilet bowl. It resulted in water escaping and causing damages to the drywall, paint, carpentry and flooring of the basement bathroom, recreational, family and storage rooms. Because our insured bought the Sewer back-up endorsement, this loss was covered. In addition to putting the rental back to where it was before the loss, we covered the cost of site protection, disposal, plumbing work and a final clean.
APRIL highly recommends you to add the Sewer back-up protection to your landlord insurance to be covered in similar events.