IncomeProperty

All-Risk Policy

The most comprehensive: covers all risks to the building and contents (except exclusions stated in the policy), including accidental damage to your own property.

Broad Form Policy

Offers two levels of protection: the building is covered for nearly all risks, while the contents are covered for a limited number of risks. Often a more economical choice.

Basic Form Policy

Covers only the risks listed in the policy: fire, vandalism, theft, falling objects, vehicle impact, hail, or windstorms. It’s important to read your policy carefully to avoid surprises.

Coverage A: Dwelling Building

Coverage B: Detached Private Structures

You should consider protecting any outbuildings located on your residential property, such as a detached garage or a shed. The owner-occupied policy typically provides coverage equal to 10% of the main building’s value for all your outbuildings combined. It is important to be vigilant about the amounts listed and you can request to increase them if necessary.

Coverage C: Personal Property

From the insured amount for the building, you automatically receive an additional amount attributable to the contents, which varies from 50% to 70% of the building’s value and is listed under the section for property and belongings not covered by a specific insurance policy.

The coverage for personal property in your home insurance policy includes an amount for belongings of a family member studying away from home, at their place of study. It can also cover personal effects of family members during a stay in a healthcare facility. Additionally, the coverage extends to belongings temporarily away from the insured premises, such as during travel.

Most comprehensive home insurance policies include a replacement cost clause for contents, meaning that damaged or destroyed items, whether clothing or accessories, will be replaced with new items of the same kind and quality.

You should be aware of any specific limitations in your contract regarding contents. If needed, you can purchase additional insurance specifically designated for these items.

Coverage D: Additional Living expenses and Fair Rental Value

If, following a covered loss, your residence becomes uninhabitable, your homeowner’s insurance policy provides amounts to cover additional living expenses during the repair period or until you can return home.

The various contracts offered by our insurers either specify a percentage of the building’s insured value or provide different amounts or contract durations depending on the policy you have purchased. This same coverage also protects against loss of income when your home contains one or more rental units.

Coverage E: Legal Liability

This section of your homeowners insurance policy covers your personal liability for bodily injury or property damage that a third party may suffer due to your daily personal activities or the insured premises (homes or land) that you own or use.

The liability coverage limit is the maximum amount you are covered for in the event of a lawsuit against you. Your insurer will handle your legal defense if you are sued.

When deciding on the amount of liability coverage to purchase, consider that this protection applies worldwide. If you travel even occasionally, it is wise to increase your limit to \$2 million and even consider purchasing additional umbrella liability coverage.

If you engage in professional activities, such as being self-employed, you should disclose this and obtain coverage specifically for professional activities.

Coverage F: Voluntary Medical Payment

The homeowners policy covers medical expenses for minor incidents that may occur on your residence premises. This coverage pays for medical costs incurred by or on behalf of a victim of an accident resulting from your private life activities or on the insured premises. It also covers bodily injuries sustained by your domestic employees, such as a babysitter or housekeeper, while performing their duties.

Coverage G: Voluntary payment for damage to property

This coverage protects against accidental damage caused to a third party’s property, provided it results from activities related to your private life or on the insured premises.

Important details for an income property

The “property” coverage in an income property insurance policy is generally divided into different sections. These cover both the building, any outbuildings, the furnished contents provided by the owner, as well as the loss of rental income resulting from a covered loss. Here’s an overview of this structure:

• Coverage A applies to the main building you own and rent out to third parties.

• Coverage B applies to outbuildings, such as a garden shed or a detached garage.

• Coverage C protects personal property, meaning the contents of the units when they are furnished by you.

• Coverage D corresponds to fair rental value and compensates you for lost rental income if a unit becomes uninhabitable following a covered loss.

In addition, there is liability coverage, generally referred to as Coverage E. It protects you against claims for bodily injury or property damage unintentionally caused to third parties on premises you own. This coverage is often linked to your primary insurance, which is why it is recommended to insure your income properties with the same insurer as your principal residence. This can help avoid many complications in the event of a claim.

IMPORTANT: Your liability coverage does not extend to your tenants’ liability. They must purchase their own tenant’s insurance policy.

These descriptions are provided for informational purposes only. Each coverage mentioned here is subject to various conditions, restrictions, and exclusions outlined in the policy forms. Coverages are also subject to change without notice. Please refer to your insurer’s forms and any amendments for full details.