non-resident property insurance

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myabundance
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non-resident property insurance

Post by myabundance » 30 Jan 2017 20:57

I'm a Canadian with property and insurance in Canada. However, I plan on moving to the USA and want to make sure my properties can be insured as a non-resident (landlord). It's hard to find a company who will do this. Does anyone have any tips?

Do you know a broker or company that does this?

Or a strategy (e.g. keep an address in Canada for the purposes of having insurance for properties in the country)?

I don't wish to change the name on any deeds just so someone else can hold insurance for the property on my behalf. I just want to make sure my property is covered as a landlord in case there are liabilities.

Thanks in advance!

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Peculiar_Investor
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Re: non-resident property insurance

Post by Peculiar_Investor » 30 Jan 2017 22:18

Welcome to FWF.

In what province(s) are your rental properties located? How are you planning to manage the properties while you are living in the USA? Will you be using a property manager? If you are using a property manager, I would think that everything related to the property(s) would funnel back through the property manager, therefore providing a Canadian address.

You might also need to review NR6 - Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent.
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kcowan
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Re: non-resident property insurance

Post by kcowan » 31 Jan 2017 06:58

We use Canadian Northern Shield. We tell them we are non-resident and they are ok with it. Our tenants also need to hold insurance for their contents and liability. Although the situation is not exactly parallel because we return after 6 months, it might be worth a call.
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myabundance
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Re: non-resident property insurance

Post by myabundance » 02 Feb 2017 20:05

Thanks for all the feedback!

Peculiar_Investor:
I have a property manager in Ontario and a cross-border accountant.

I was told that the underwriter could only provide insurance for "residents". It was very unclear to me what this meant.

Under immigration law, that would mean I require being present at least six months of the year.
Under tax law, I don't have to be present at all, but just have an address.

Has anyone filed a claim?
And if you did, did you have to be physically present for it in some way or provide some proof of being in the country?
Or was having an address enough (no questions asked)?

I'm trying to avoid unnecessary issues and if I can just provide an address without getting into trouble, I'd much prefer that route.

kcowan - Thanks for the tip on CNS - I will check them out!

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Re: non-resident property insurance

Post by flywaysuzy » 04 Feb 2017 18:06

You would want the insuance company's definition of resident first- who would want to pay for premiums for insurance that might not pay out when you did have a claim?
suzy

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Re: non-resident property insurance

Post by OhGreatGuru » 07 Feb 2017 09:31

There is a thread along similar lines on CMF http://canadianmoneyforum.com/showthrea ... n-resident

It seems some insurance companies don't want to insure homes with absentee landlords. But there must be some that will. One suspects the claim rates are higher, so the premium rates will be higher. Try some of the contacts suggested there, or talk to an insurance broker.

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Re: non-resident property insurance

Post by Yoder » 07 Feb 2017 09:48

SquareOne Insurance

They were satisfied that i had a local property manager...

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Re: non-resident property insurance

Post by SQRT » 07 Feb 2017 11:54

Never had much of an issue. Our Ontario cottage and snowbird home are obviously part time residences. Canmore home is our official residence but we are often away. Our Toronto condo was the only issue. I think the insurance co was sceptical that it is owner occupied, ie not rented. I eventually convinced them (Meloche Monnex) without issue. Have regular property checks at all homes other than Condo.

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