Protect Yourself When Renting Out Your Home, Cabin or Vacation Property

Owning a vacation home or cabin is a source of enjoyment for a lot of families. It can also be a solid source of income. Be sure to know of your rights and responsibilities as a property owner who rents.

Bow Valley Insurance has been serving the insurance needs of Alberta for 36 years. We are an independent brokerage providing excellent insurance products from the country’s most reputable providers, includingrental property coverage for those thinking of renting out their home.

Landlord Beware

A thorough review of the current policy covering your holiday property may reveal that you are not covered for renting out your cabin to others.

Insurers generally view that having tenants present is a greater risk than being owner occupied.. Since the risk of something happening to, or happening upon, a property is greater with a stream of tenants unfamiliar with the area rather than your close friends or relatives visiting, a different insurance policy is in order for those who want to rent to a third party.

With regards to your vacation home there are two inescapable truths about having renters:

1) No one will be as careful with your property as you are, and; 2) No one will know the ins and outs of land & the property as well as you do. Damage is a high possibility.

Unfortunately, however, a renter may likely be reluctant to tell you about damages that occurred during their tenancy, and unless you have the time to frequently visit, you will be hard pressed to recover your damages against the correct renter. Additionally, if you keep any sort of valuables at the site, you run a greater risk of theft too. Will the renters even bother with resetting the alarm system?

In the event of an emergency with a septic system, or a burst pipe, or to turn off the power when a portable heater goes on the fritz, will your tenant have any idea how to identify a septic overflow, turn off the water, or find the circuit breakers? Even if you leave a comprehensive “guest manual,” it may present the necessary information too late.

If you own a small cabin far from civilization on a body of water, it is not hard to foresee how a serious accident can quickly exceed your rental property’s coverage limits.

Protect Your Interests Correctly

It is fairly straightforward to identify your own safety and insurance needs. It is extremely difficult to account for the behaviour or informational needs of other people. Even when you have the correct rental property policy in place, once you are a landlord it is still a good idea to carry an umbrella liability policy against the totally unforeseen.

For a comprehensive conversation and a free, no obligation rental insurance quote, contact us.