Some Basic Residential Tenancy Insurance Issues



If you represent a client who wishes to lease his condo as a FURNISHED lease for 6 months (short term):

1. Does the Landlord’s home insurance still continue in full force covering a short term lease?

2. If the insurance company finds out the condo is leased furnished, does that increase the liability and can the Insurance Company cancel the policy? How much notice?

3. Can the Tenant buy separate insurance such as a condo tenants insurance package?

4. Is it possible and allowed by insurance companies to have 2 separate policies, Landlord and Tenant’s policies, on the same condo? 

5. If there is a major incident with lots of damage, do both insurance companies cover the damage and how do you determine how much each company pays?

6. If the Landlord’s company finds out that he is leasing out his home, can the Landlord’s insurance company assess it as an increased risk and cancel the policy due to the new risk assigned (the new tenant)?


  1. Sometimes yes and sometimes no.
  2. Yes. 15 days by registered mail.
  3. Yes.
  4. Yes.
  5. One company will pay, not two. There is usually a clause in the policy which will indicate that the insurance is “second payor”.
  6. Yes.

Brian Madigan LL.B., Broker

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