Love blossoms... and before long, Miguel moves in with Stephanie. Two months later, while making fries, Miguel causes a fire: The building is totally lost. Is Miguel in hot water?
Beware of affairs of the heart! The newfound partner, in fact, is only included in the contract after three months of cohabitation. Therefore, Miguel must be covered by name under Stephanie's home insurance contract, and he must inform his insurer of the change of address. Otherwise, he'll be obliged to fend for himself if a third-party liability claim is brought against him.
My brother-in-law owns a building with eight apartments. What happens to his lost revenue if the building burns down?
Many building owners forget to inform their insurers when they increase their rent. For example, if that same brother-in-law increased his rent by 5 percent before the fire, and if the revenues generated by his building have gone from $25,200 to $26,460, he will receive no more than $25,200 if he fails to advise his insurer of the rent increases.
Can apartment owners rest easy?
They are more inclined to protect themselves than tenants, as almost all have home insurance policies. However, their policies include two predefined sections: the first pertains to personal property; the second, to leasehold improvements. Indeed, if an apartment owner makes a considerable number of improvements in the span of a year (floors redone, interior decoration added), chances are that his or her fire insurance coverage won't be enough. Therefore, inform your broker or insurer of any important changes to your property!
FOR MORE INFO:
- On the art of reducing your home and automobile insurance costs,
consult the Insurance Bureau of Canada
- Since everything from the dishes to the TV to clothes must be purchased again after a fire, drawing up a statement of assets helps to ensure that nothing is forgotten: Personal Property Inventory
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