Though the summer vacation season is winding down, the Alberta rental market stays hot all year long. Vacationers and visitors from all around the world come to Alberta to take advantage of the stunning mountain scenery and the many leisure opportunities afforded by the province’s great outdoors, not to mention the world-class attractions in major cities like Calgary and Edmonton.
Online rental agencies have made it easier than ever for homeowners to earn a little extra income by renting out their properties to short-term or long-term vacationers. However, there are some important insurance considerations to take into account if you’re planning to rent your home to a visitor.
The Basics of Rental Property Insurance Calgary
Most homeowner’s insurance policies are not designed to account for commercial activities taking place on the property. In other words, it’s unlikely that your standard policy will provide you with the protection you need if you plan to rent out your home to vacationers for short or extended periods of time.
In this regard, there are two common mistakes you’ll want to avoid. First, never assume that your existing policy will provide for your choice to rent out your property. Second, it is equally dangerous to assume that any rental agencies you’re working with will extend their coverage to your rental agreement. While some rental agencies can provide property owners with some degree of support, the onus is on you to make sure your home and belongings are property protected.
Ask Questions Before You Rent
If you’re thinking about renting our your property, one of the first things you should do is contact your homeowner’s insurance provider and ask some questions. Be sure to find out:
- Does your existing policy facilitate renting out your home to visitors? If so, are there term limitations (i.e. short-term or long-term) that you should be aware of?
- Does the existing coverage protect you from all possible accidents and perils?
- Which perils are covered and which are not?
- Is there any way to add perils to the existing policy to cover any gaps?
- Are all your valuables and important personal items completely protected? Keep in mind that you may need to report specific items to the insurance company to ensure they’re covered.
When it comes to your preliminary research, the bottom line is this: if you’re not sure, ask. It’s always better to know than it is to guess, only to find out in a worst-case scenario that you’re not protected to the degree you thought you were.
Cover Gaps and Shortfalls
Some insurance companies are reluctant to provide their clients with coverage that allows them to rent out their properties, while others may refuse to offer it altogether. While it is a rare event, there have been cases where an insurance company cancelled an existing policy because a homeowner proceeded to rent out their property despite the fact that the insurer wouldn’t protect them. This is a scenario you’ll want to avoid, since it leaves you completely vulnerable.
That said, there are many insurance companies who will be more than happy to provide you with the protection you need. The key is to find a progressive insurer, one that understands the changing and evolving nature of the property rental market. If you don’t want to shop around on your own, you can trust an experienced insurance broker to gather quotes, rates and coverage offers on your behalf.
Rental Property Insurance Calgary: Trust Lane’s Insurance for Generous Coverage at Competitive Rates
If you do need to purchase additional insurance for your rental property, your first step will be to determine which type of renters’ coverage you need. There are four main varieties: one that covers permanently rented dwellings, one that covers rented outbuildings on your primary property, one that covers seasonal rentals and one designed for people who supplement their income by renting for shorter terms.
At Lane’s Insurance, our brokers are happy to help you find the type of coverage that’s right for you and your particular situation. We recognize that one size doesn’t fit all when it comes to insurance, and we always work hard to ensure you get exactly what you’re looking for at a rate you can afford. Visit Lane’s Insurance online today to get a fast, free quote, or contact Lane’s Insurance directly to learn more.