Vancouver Home Insurance
Mortgage Helpers/
Many new and veteran home owners alike realize that servicing their mortgage can put great strains on their financial situation. In the Vancouver housing market, many families choose to rent out their basements as a way to offset their mortgage because property values are so high. This method allows people to live in a more desirable home and location without taking on so much extra financial burdens. Instead of shouldering the burden for example of a $3000/month mortgage, with a tenant in the basement at a rent of $1000/month, suddenly you now have a $2000/month mortgage.
Claire Devalano wanted to own her own home. But she also wanted to pay her mortgage off faster. Her solution? She became a landlord. Five months ago, she purchased a small semi-detached house in Vancouver that came equipped with a basement apartment that she rents out for $1200 monthly.
"It's a nice feeling having someone else help you pay off your mortgage with you," said Devalano, a Vancouver Airport employee. "But you also have to be aware that this is very much a responsibility and have to treat it like business. And that means you have to limit your risk. That means a proper lease agreement and for me, tenant insurance is a must."
It's Good Advice to Require your Tenants to Have Renter's Insurance
Some landlords are requiring their tenants to carry renter's insurance because it protects the landlords. Should a tenant sustain a devastating loss without renter's insurance, they might not be able to pay the rent. And, as unfortunate as this may seem, then the landlord must begin the long and costly job of the eviction process. Landlords who require renter's insurance enjoy the benefits of having tenants who are protected, should a tenant-caused accident occur in the apartment, and it also provides a level of tenant screening.
If You Don't Require it at least Education your Tenants
Some tenants believe that they don't need renter's insurance because they are covered by the building owner's policy. While the building owner's policy covers the building, it doesn't cover theft or kitchen fires. Tenants are arguably liable for problems they create, such as a kitchen fire.
They could even find themselves in trouble if their party guests get out of hand and cause damage. Replacing possessions as a result of fire or water damage could run into the thousands of dollars. When compared with the cost to replace everything, monthly insurance premiums are reasonably small expenditures. In fact, considering the relatively low cost of tenants insurance, not carrying coverage is an unnecessary risk.
While, as a landlord, your insurance policy protects improvements that you've made - it doesn't cover the improvements tenants make. So if they've made changes to their living quarters that are damaged in the event of an accident they should not expect to be compensated. Only their tenants insurance can provide them with that coverage.
Third Party Liability Because Accidents Happen
And there is always a possibility that they could have an accident on their premises. Having third party liability insurance will protect them from accidents which could cause damage or injury to another's property.
And you, as the landlord, are not responsible for paying their living expenses in the event when they can't continue to live in their rented dwelling while an insurance claim is being settled or repairs are being made. This includes cases of fire, theft, vandalism, etc. This will ease the financial burden to them while the claims process progresses and repairs are being made.
It is clear that tenants insurance is an affordable way for renters to achieve peace of mind and protect themselves and their possessions. And as a landlord, it's one more opportunity to limit your risk.
Many new and veteran home owners alike realize that servicing their mortgage can put great strains on their financial situation. In the Vancouver housing market, many families choose to rent out their basements as a way to offset their mortgage because property values are so high. This method allows people to live in a more desirable home and location without taking on so much extra financial burdens. Instead of shouldering the burden for example of a $3000/month mortgage, with a tenant in the basement at a rent of $1000/month, suddenly you now have a $2000/month mortgage.
Claire Devalano wanted to own her own home. But she also wanted to pay her mortgage off faster. Her solution? She became a landlord. Five months ago, she purchased a small semi-detached house in Vancouver that came equipped with a basement apartment that she rents out for $1200 monthly.
"It's a nice feeling having someone else help you pay off your mortgage with you," said Devalano, a Vancouver Airport employee. "But you also have to be aware that this is very much a responsibility and have to treat it like business. And that means you have to limit your risk. That means a proper lease agreement and for me, tenant insurance is a must."
It's Good Advice to Require your Tenants to Have Renter's Insurance
Some landlords are requiring their tenants to carry renter's insurance because it protects the landlords. Should a tenant sustain a devastating loss without renter's insurance, they might not be able to pay the rent. And, as unfortunate as this may seem, then the landlord must begin the long and costly job of the eviction process. Landlords who require renter's insurance enjoy the benefits of having tenants who are protected, should a tenant-caused accident occur in the apartment, and it also provides a level of tenant screening.
If You Don't Require it at least Education your Tenants
Some tenants believe that they don't need renter's insurance because they are covered by the building owner's policy. While the building owner's policy covers the building, it doesn't cover theft or kitchen fires. Tenants are arguably liable for problems they create, such as a kitchen fire.
They could even find themselves in trouble if their party guests get out of hand and cause damage. Replacing possessions as a result of fire or water damage could run into the thousands of dollars. When compared with the cost to replace everything, monthly insurance premiums are reasonably small expenditures. In fact, considering the relatively low cost of tenants insurance, not carrying coverage is an unnecessary risk.
While, as a landlord, your insurance policy protects improvements that you've made - it doesn't cover the improvements tenants make. So if they've made changes to their living quarters that are damaged in the event of an accident they should not expect to be compensated. Only their tenants insurance can provide them with that coverage.
Third Party Liability Because Accidents Happen
And there is always a possibility that they could have an accident on their premises. Having third party liability insurance will protect them from accidents which could cause damage or injury to another's property.
And you, as the landlord, are not responsible for paying their living expenses in the event when they can't continue to live in their rented dwelling while an insurance claim is being settled or repairs are being made. This includes cases of fire, theft, vandalism, etc. This will ease the financial burden to them while the claims process progresses and repairs are being made.
It is clear that tenants insurance is an affordable way for renters to achieve peace of mind and protect themselves and their possessions. And as a landlord, it's one more opportunity to limit your risk.