InFocus: Residential Rentals

10 Essentials every broker should know about Rental Insurance

10 Essentials every broker should know about Rental Insurance

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What do brokers need to know about rental insurance? National Director, Residential, APRIL Canada’s Charlotte Malaurie, offers these 10 essentials:
  1. Rental insurance is becoming more complex, with mixed occupancies including short-term rentals requiring a variety of coverage options.
  2. This diversity in the rental market needs to be accommodated by insurance companies, where custom designed policies for each risk are becoming critical for proper coverage and brokers need to ask more questions to ensure they have the right coverage for their clients.
  3. From a claims perspective, it is clear that many losses can be prevented.  Due diligence in selecting and vetting tenants is key as is thoroughly completing & reviewing the application and coverage options for insurance.  Having a security deposit in hand helps if all else fails.
  4. Owners should encourage the tenant to have their own insurance and a tenancy contract needs to be clearly laid out.
  5. Inspections are instrumental in preventing losses and give the owner confirmation that the property is being well maintained.
  6. The most common claim is water damage.  This can be mitigated through property maintenance or installing a water flow detection device.
  7. Many Condo owners don’t bother with insurance, but as condo boards are faced with higher premiums and deductibles due to claims frequency, the need for a condo unit owners’ package increases. Loss Assessment and Rental Income coverage is a necessity for condo owners who rent out their units. 
  8. Many clients do not understand the risks they are assuming by renting their property out for holidays or house swapping.  This growing trend is resulting in greater exposures as owners incorrectly assume that their homeowner policies or their listing service will respond in the event of a loss.
  9. Now more than ever, brokers should regularly review the occupancy of each property with their clients and reiterate the significance of reporting mid term changes, preferably before they occur.  Making clients aware of how trends such as short term rentals can impact their coverage is very important as well.
  10. Specific policies are available to address these situations from companies such as APRIL Canada so now residential property owners can genuinely choose the coverage that is best for them. 

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APRIL Canada is an independant MGA backed by worldwide expertise in providing innovative insurance solutions for your hard to place insurance risks.

True to its values and commitments, APRIL strives to give meaning to the customer relationship. Providing the best solution for an insured is accomplished with team work between the Broker and underwriter. A relationship built on trust enables us to find the right coverage.

APRIL Canada has more than 150 employees, 5 offices Canada Wide, 45,000 Policy Holders and 1,500 Broker Partners.

Choosing APRIL, is being assured of the benefit of such high quality advice and excellent service. We do not provide ready made products, but made to order solutions. For us, each risk is unique and deserves an in depth understanding.

Anticipating the needs and expectations of Brokers, maintaining an open dialogue, being innovative with products and services: this is the key to customer relationships at APRIL.