Are you sharing your life between your condo and your partner’s, or between your house in town and your cottage in the country? Maybe you’re you thinking of putting one (or both) of them up for rent. Once a month, or every weekend?
Whatever the answer, the one thing to keep in mind is that you need to talk to your insurance broker or insurer to make sure you have a policy that answers your needs and that will truly protect you in the event of a claim.
Personal and commercial activities: 2 different realities in terms of insurance
Your home insurance policy is designed to cover the activities of your private life. It covers your civil responsibility and that of your family, and protects your property against various forms of risk.
Overnight, your house or cottage, and all of the goods and equipment they hold, are now rented and used by clients. This changes the assessment of risk from an insurer’s perspective in terms of theft, vandalism, or fire, or with regard to liability if your tenants inflict damage on your neighbours.
When you frankly declare your new activities, your insurer can give you advice and, if needed, suggest coverage adapted to your new reality.
Every insurer has its own rules on this issue. Some may accept the occasional rental of a home for a limited number of days during the year, while others may prefer to provide you with a new policy better suited to your commercial activities. It all depends on your situation.
Saying nothing to avoid the cost: not a good idea
If you fail to declare these activities to your insurer, you may face unpleasant consequences. In the event of a claim, you might receive only partial compensation or none at all. This could put you in a difficult financial situation.
Speaking up and being honest is the best way of avoiding worries and enjoying peace of mind as you go about your new occupations.
More advice
Before starting your new adventure, find out if your municipality or your condo association has rules that apply to it. In most situations, this is the case. Learn about the rules and make sure your tenants are informed and comply with them.
