For Rent
Taking in a tenant can be
a win-win: It can help
ease a mortgage or
supplement a pension,
while providing company
around the house if you
want it. But before you
welcome a boarder,
consider how it’ll affect
your home insurance.
Personal property:
Property belonging to a
boarder won’t be covered
under your policy, so advise
them to get their own insur-
ance for personal items.
Liability:
It protects you if you acci-
dentally injure someone else
or damage their property. If
a tenant is injured on your
property and sues you for
negligence, you’d be covered
for the liability.
Capacity:
Inside the Varadi-Hagen household
its advantages. Varadi and Hagen
can use their spending power for
priorities beyond housing: buying
locally sourced foods, supporting
area restaurants and businesses, and
attending the city’s many festivals.
Central living also means Varadi—an
avid user of Calgary’s cycle track—
can bike to work year-round, and the
family can easily run errands by bike
or on foot. “It makes for a healthier
lifestyle,” he adds.
Peace of mind is an important
consideration too. “Home insurance
for renters is considerably cheaper
than for homeowners,” says AMA’s
Bitter. “It protects not only a person’s
belongings, but also covers certain
types of personal liability.” This is
particularly important in the case of
at-fault incidents that affect property
owned by others, such as starting a
fire in an apartment building.
Varadi enjoys the sense of freedom
inherent in being a renter. Like
many his age, he has moved around
a lot, changed careers and knows
that life throws curveballs. “For the
foreseeable future, this is where we’ll
make our home. But who knows
what opportunities will arise in a
few years’ time. This allows us the
freedom to not be tied down in any
one place,” he says.
That said, he does see the value in
ownership: “I’ll admit, there is a little
piece in the back of me that thinks it
would be nice to have that investment
in something that is yours; that you
could fall back on should you require
it.” Varadi and Hagen do plan to pur-
chase one day—a condo, in time for
retirement. “But right now,” he says,
“there’s no rush.”
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Each insurance company has
its own guidelines regarding
the number of boarders you
can take in. If you plan to take
in more boarders than your
insurance allows, your prem-
ises would be considered
a boarding house—and a
commercial property policy
would be required.
Rental suites:
If the space you plan to rent
has a separate entrance,
your policy will need to be
changed to cover it—a rental
suite is considered a separate
premises, and needs to be
insured differently.
Remember:
Your insurance policy is a
contract. If you do something
outside of the listed specifics,
you might not be covered.
Your best bet is always to
contact us before you decide
to rent out space in your home.
AMAInsurance.ca
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