SWG Property - Upgrading Insurance Protection for Rented Dwellings

January 15, 2020

Landowners are not just responsible for collecting rent payments. They are responsible for managing the upkeep, maintenance, and protection of their properties and those who enter as tenants or visitors.

Lawsuits in this industry are a common occurrence. In a 2014 case, the owners of a rented property in BC sued the property management company they hired to find tenants and to manage the property while they were away. In just a year, the new tenant had trashed the house. The property management company was accused of negligence for failing to properly vet the tenant. Had they simply searched her name on Google, they would have seen that she carried a criminal record. (1)

With so many factors to consider, landowners could be putting themselves at risk if they haven’t put the proper coverage in place.

What are the Common Risks in Rental Dwellings?

Landowners need a policy with comprehensive coverage to protect them from the many unexpected incidents and risks that come with renting property. Some of the most common risks facing clients in this market include:

Loss of rental earnings due to business interruption or insurable property issues such as flooding or sewer backup

Willful damage by a third party visitor, vandalism, and appliance damage

Litigation by tenants due to damages, injuries, or death occurring on the property

Lawsuits by visitors (and even trespassers) for injuries or death occurring on the property

Identity and fraud theft, such as when a rental property is used for fraudulent purposes.

Rented dwellings require varying types of coverage depending on the property’s individual risk, construction, occupancy, and town grade. Because of this, SWG offers a range of coverage options for insurance tailored to your client’s needs.

Customizable Coverage to Better Serve Landowners

SWG PROPERTY – Commercial Property Liability insurance is designed to cover hard-to-place property accounts. It can accommodate most realty-type risks, from stand-alone rentals and vacant dwellings, to large commercial risks, with an in-house capacity of up to $6,000,000 ($4,000,000 for Quebec).

Coverage Highlights:

Broad Form

Replacement Cost or ACV

All Risk Coverage or Named Perils

Other Coverages Includes:

Business Interruption

Flood, Quake, Sewer Backup

Crime – including Employee Dishonesty & Broad Form Money & Securities

Mechanical Breakdown

Extension packages are also available. See our website for more details.


Source:

1. https://www.thestar.com/business/personal_finance/2014/07/18/how_homeowners_1year_rental_ended_up_in_court.html