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Property Insurance

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Fortuneinvesting

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Mar 26, 2009
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Just looking for some guidance on average values for house insurance and condo insurance in Alberta to use in my calculations. Im using $60/Month at the moment.

Thanks
 
Ahhh... seems like we are both at the same stage in our progress. I am closing on a property on May 15 and have been doing some research on companies & rates. I have spoken to many senior and experienced investors by now and it seems that for a single family detached home, they are paying anywhere from $740 to $1100 per year. I submitted my information for a quote and got it back at almost $1300 with Park Insurance. THere also seems to be a volume discount for insuring more properties with the same provider.





Check out the following thread:



http://myreinspace.com/rein_members_only/Members-Only_Discussion/81-10832-Property_Insurance_Premium_-_how_are_they_calculated.html=
 
QUOTE (Fortuneinvesting @ Apr 26 2009, 10:07 PM) Just looking for some guidance on average values for house insurance and condo insurance in Alberta to use in my calculations. Im using $60/Month at the moment.

Thanks


You asked about two things, house insurance and condo insurance. They aren`t the same, as the condo corp is required to carry insurance for fire, etc, whereas with a house you`re on the hook for the whole amount. I just insured a 2 bedroom condo in Calgary for <200/year, including rental interuption. That was through AMA.

Michael
 
QUOTE (bizaro86 @ Apr 27 2009, 11:56 AM) You asked about two things, house insurance and condo insurance. They aren`t the same, as the condo corp is required to carry insurance for fire, etc, whereas with a house you`re on the hook for the whole amount. I just insured a 2 bedroom condo in Calgary for <200/year, including rental interuption. That was through AMA.

Michael

That was the intention... I am looking at both types of properties. Thank you for the insurance quote on the Condo though, that is most helpful. What is rental interruption?

Thank you,

Iain

PS - Thank you Kay for the figures on the house!
 
I`m just wondering why would you even bother carrying insurance on an investment condo to begin with. If the the strata/condo corp already insures your condo for fire, doesn`t it seem logical to tell your tenants that it is up to them to carry content insurance. I would rather pocket that $200 a month that another poster stated he was paying and use that to self insure for future problems.

Anyone care to weigh in on my point? Always up for some constructive criticism.
 
Rental interuption insurance pays you the rent you would otherwise receive if the property becomes unlivable for an insured reason. For example, if the pipes froze, and your tenants moved out (and therefore stopped paying you), it would cover whatever rent they were paying for while it was unlivable.

As to the previous poster, it was 200/year, not per month.

This is my first condo, so I`m far from an expert. Do those of you who are more experienced typically get insurance on investment condos, or just make sure the condo corp has adequate insurance and leave it at that?

Michael
 
The Condo Corp Insurance only covers the Condo in it`s original state from the builder. Any upgrades to flooring, cupboards ,etc will have the unit owner paying the difference from the builder grade to the upgraded condition. Some Condo corps make the unit owner pay the deductible if it was their or their tenants fault.Unit owner insurance will cover that deductible ,in most cases. I`ve seen deductibles at $5,000.00. It`s worth the $200.00 a year in my opinion.

Doug
 
QUOTE (dplummer @ Apr 28 2009, 05:09 PM) The Condo Corp Insurance only covers the Condo in it`s original state from the builder. Any upgrades to flooring, cupboards ,etc will have the unit owner paying the difference from the builder grade to the upgraded condition. Some Condo corps make the unit owner pay the deductible if it was their or their tenants fault.Unit owner insurance will cover that deductible ,in most cases. I`ve seen deductibles at $5,000.00. It`s worth the $200.00 a year in my opinion.

Doug

Agreed. Also, condo insurance will provide you with some liability coverage.

Heather
 
QUOTE (bizaro86 @ Apr 28 2009, 02:02 PM) This is my first condo, so I`m far from an expert. Do those of you who are more experienced typically get insurance on investment condos, or just make sure the condo corp has adequate insurance and leave it at that?

Michael

I would definitely get the insurance for condos, mainly for the rental income and liability insurance. Pipes leaking are short term, but what happens if the place burns down? The strata insurance may pay for reconstruction but who`s going to make your mortgage payments for the 1 to 2 years it takes to rebuild? Your lender is still going to insist you do.
 
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