Monday, February 23, 2009

A Pretty Big Glitch

We start this week with a glitch. An insurance related one.

It turns out that our current homeowners' insurance policy for our properties is just that -- for personal use only.

Usually, when I have to speak with a broker about insurance, I'm on the phone for 45 mins or more.

So I got my tea ready and was braced for a barrage of questions this morning about who we are renting to, will there be pets, what are your renters' favorite colours etc etc.

Well, surprise, surprise, the conversation halted in under 2 minutes. Simply put. They do not offer that product nor will they defend us should something go wrong. You will have to find a different insurer completely.

I must admit, I was aghast. Of all the scenarios, I did not expect this one.

Our insurance is with a group insurer, the biggest one in the country for professionals in fact, but I guess in this case, that's not enough.

D is not giving up on his vacation rental dream. He is going to contact his friend, the insurance broker for advice and quotes.


  1. This is not an unusual situation. Most insurers will not touch vacation rental because there is no legislation that protects the owner or tenant as there is in the Landlord Tenanat Act. Short term rental is an entirely different animal and insurers tend to steer clear of it. That is not to say you will not find a specialist broker. Many people do rent and find appropriate insurance. One suggestion is to find an owner in your province who is renting and call them to find out who they insure with. You may find you have to change insurers entirely but you will be better off with one who has a bunch of experience with the topic.

  2. I feel your insurance pain! I've been struggling myself this week.

    Hope you get it worked out.

  3. Thanks for sharing. At least I know one more thing to look out for if I go down this route!

  4. Hi Heather! Thanks for your advice. We found a link to a broker from the Cottage Living Magazine site. It sounds like they know what they are doing. D's going to call them soon for a quote.

    Hi Money! Thanks! How is it going on your end?

    Hi Daphne! I would have never thought this would happen. I expected our premium to maybe double but not this. I'm glad I called!