# Home Insurance



## BETTYVEE (Dec 23, 2009)

Hi everyone, this question goes out to all the savvy R/E investor with rental properties. Im hoping you can offer some advice.

I have a house that is three storeys plus a finished basement and each floor is a self contained unit with separate entrances. I live on the first floor and rent out the rest. Im shopping around for home insurance and can't find any company willing to insure me. As soon as they hear I have more than the standard basement tenant I get rejected.

How do you find insurance for your home? I have called around 10 brokers with no luck :frown: Any suggestions or tips? I do not want to lie and risk getting screwed if the time comes to submit a claim.


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## Ag Driver (Dec 13, 2012)

I had a bit of trouble finding insurance for my house. My situation is an owner occupied house with two renters/roommates. After going through a half dozen companies, I stopped at TD after they said "No problem!" and had cheapest rate thus far! I'm not sure if they be suitable for your situation, but it is worth giving them a call. The agents over the phone were non-commission based, so I had a bit more trust in answers I was receiving.


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## Just a Guy (Mar 27, 2012)

Is it a legal triplex, or do you have two unregistered suites? Makes a difference. That being said, asking for insurance on a triplex makes it easier to understand for an insurance company than a house with extra suites.


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## stardancer (Apr 26, 2009)

Basically, you have 4 apartments. I have three in my building and although I live in one of them, it is considered a triplex. In my town, it is practically impossible to get insurance for a building larger than a triplex. I just squeaked in under the wire. Even with no claims in the past 33 years, I pay through the nose.


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## BETTYVEE (Dec 23, 2009)

The house is technically two and a half storeys plus a basement not sure if that means its a duplex or triplex but it basically can have four apartments. Not sure who I would have it "registered" with Just a guy?


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## marina628 (Dec 14, 2010)

You may want to start with having fire department do inspection on the home ,if they declare it safe that would go a long way with insurance company.I assume you don't have a mortgage if you are not insured.


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## Just a Guy (Mar 27, 2012)

Technically, in most major cities or towns, you can't just build suites into your house and rent them out (though people do). First off, the property has to be properly zoned for multi-resident housing (talk to the zoning department), then it has to be inspected and licenced by the town or city (getting the proper permits and paying the proper fees). 

If you don't do this, and the town or city gets a complaint, you can be faced with some serious fines, have to do major renovations (or remove the suites), etc. 

I had a friend who bought what he thought was a place with a basement suite, but it wasn't legal. Cost him $25k in renovations, and he had to remove the suite (I can't remember the fine, but he may not have had any because he was compliant with the renovations and removed the suite). 

A lot of "rentals" fall into the illegal suite category and new "investors" don't realize it. Then they run into a few issues like not being able to insure the property, or a tenant or neighbour complains to the authorities and they run into trouble...

Oh, and if the suite is illegal, there's a good chance insurance wouldn't have to cover you either...

Of course, some places (very few) don't need the proper zoning, permits, etc. but chances are you're breaking the law...and now you can't even claim ignorance.


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## iherald (Apr 18, 2009)

It sounds to me like you have an illegal apartment building. A legal duplex/triplex means that it is legally registered that way by the City and if you were to look at your MPAC assessment (in Ontario) it will say "Duplex". 

If you're an insurance company, would you want to insure someone who has four separate apartments in a house where there is no evidence that it's properly done? The main thing is don't lie to an insurance company they will find out if there is ever a claim and they will deny paying anything.


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## BETTYVEE (Dec 23, 2009)

Its legal guys, all done to code and properly registered  I think I called twenty different brokers lol finally got insurance yay


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