Ontario home insurance help - Getting hosed

[donaldcoomer28]

I don’t live in Ontario but I recently purchased a rental property (detached home) in Ottawa. It is currently being rented out and I’m getting quotes of $4k+ to insure it as a rental property. I’m beginning to regret my decision as I had not expected home insurance to be so expensive. Prior to purchasing, I’d asked everyone I know who lives in Ottawa (friends, family, including my realtor) and everyone was paying anywhere from $1300 to $1700/year.

I’ve gotten a quote from Square One and have also spoken to a broker and the quotes are in the $4-5k range. The broker also informed me of two things:

1. Most home insurance companies will only insure your rental if your primary residence is also with them; thus, I have limited options to choose from.
2. The companies that ARE willing to insure, perceive the risk to be higher if you don’t live in the province, even if you have family there who can look after the property, which is true in my case.

Yes, in hindsight I could’ve dug deeper and it’s on me but I had a million things to deal with, had no reason to suspect my actual cost would be 3x what others are paying, and you don’t know what you don’t know….so here we are.

Hoping someone in the know can help me. Is there anyone else in a similar situation who has found a solution? Are there any insurance companies or brokers who might be able to offer reasonably priced home insurance for my situation?

I’m not looking for sympathy. I’m just trying to find a solution. I understand housing is a touchy subject, so please don’t respond if you don’t have anything productive to add.

Thanks in advance!

 

[sovereignone]

@donaldcoomer28 Rentals are a high risk. Standalone rentals are an even higher risk. Your situation is uniquely unique in that no one has the exact same house as you, but even someone with a similar house is probably not renting it out without insuring their primary. You're not gonna get a solid answer here as there's too many variables to account for. You're gonna need to shop around to a few brokerages and let them know your situation upfront, they'll know which insurers they write with that insure standalone rentals. And you can always try calling a couple of direct writer insurers yourself and inquire.

 

[donaldcoomer28]

@sovereignone Cheers. That's what I'm gonna do. Will call up a bunch of places.

I'm just flabbergasted that insurance is that expensive. Clearly my situation is not something that comes up often at all when people discuss real estate investing.

 

[echo2788]

@donaldcoomer28 Stop comparing yourself with other people. And yes, a rental property is going to cost more to insure than if you were going to live in it.

 

[donaldcoomer28]

@echo2788

And yes, a rental property is going to cost more to insure than if you were going to live in it.

So 3-4x the rate of what you'd paying if you lived in it is normal to you and you'd just gladly accept without seeking alternatives?

I just asked a different friend who lives in Ottawa and owns a rental property as well and he's paying $1250 for the rental. I'm thinking it's because #1 in my post doesn't apply to him as he also lives in Ottawa but I'm not an expert which is why I'm asking for help.

 

[echo2788]

@donaldcoomer28 Then your friend lied to their insurance company.

 

[donaldcoomer28]

@echo2788 I'm not sure what your problem is but consider not responding rather than typing single sentence answers that aren't helpful.

Maybe you don't know people who own rental properties but paying a "normal" rate for a rental property is not unusual yet you're making it sound like paying 3-4x the rate of insurance on a principal residence is normal. It's obvious I'm in a bit of a unique situation vs someone whose primary residence AND rental are both in ON and covered by the same insurer (hint: they are not paying 3-4x on their rental).

 

[echo2788]

@donaldcoomer28 Paying more for a rental is normal.

 

[donaldcoomer28]

@echo2788 Sounds like you bend over willingly. To each his own.

 

[echo2788]

@donaldcoomer28 Well, seeing how you I’m in the insurance business and not using my feelings like you, yeah I know way more than you.

 

[donaldcoomer28]

@echo2788 Yep you know everything.
There is no such thing as a rental policy in the Ottawa region in the $1500 price range. Nope. Everyone who claims to have such a policy is lying to their insurer. Everyone with a rental policy is paying $4k+, zero exceptions.

 

[donaldcoomer28]

Thought I'd provide an update.

After calling around and getting lower quotes in the $3k range vs Square One, I found at least 2 insurers (thanks to helpful folks in my DMs) with more reasonable quotes (under $1600) one of them being TD and went with them. Insurance is now slightly under $1500 after factoring in ~10% discount from certain member associations. Funnily enough, brokers don't have access to these.

Standalone rentals are higher risk, literally nobody was denying that and nobody ever denied "paying more for a rental" was normal, but you have clowns like @echo2788 who claim to be experts and think paying 3x the premium of a primary residence for a rental is acceptable and that anyone paying less is lying to their insurer.

My advice to anyone in the same position who may find this thread in the future: Ignore assholes making 1 sentence blanket statements. Definitely compare with others to get an idea of what a reasonable range is and what's within the realm of possibility. I would not have known $1500 was possible if I had just accepted the first or 2nd quote I got, or listened to some clown on reddit saying "paying more for a rental is normal" as an unhelpful blanket statement.

 

[echo2788]

@donaldcoomer28 You likely got the least coverage possible. Despite your feeling being hurt, I’m not wrong.

 

[donaldcoomer28]

@echo2788 I chose the same coverage across all insurers I've received quotes on. That's what you do when you shop around (surprise surprise). Some insurance companies don't penalize you for standalone rentals. So clearly you're wrong but maybe you feel better if you keep repeating "I'm not wrong". Have at it

 

[echo2788]

But your feeling don’t matter here despite what your mom keeps saying.

 

[donaldcoomer28]

@echo2788 No feelings. I just have 6 quotes in front of me and TD + 1 other company is 65% cheaper for the same coverage. Since we're making assumptions here, I guess you're just a shitty insurance broker since you clearly didn't know some insurers penalize standalone rentals. Light bulb moment for you.

PS. I wouldn't educate you normally but unfortunately, I care about the people reading this thread in the future potentially being led astray by scum like you.

 

[echo2788]

@donaldcoomer28 Still wrong

 

[donaldcoomer28]

@echo2788 Sure if that helps you sleep at night pookie

 

[echo2788]

@donaldcoomer28 It’s ok. People like you are wrong all the time. Enjoy having no coverage on your rental. I don’t even believe you own a rental.

 

[donaldcoomer28]

@echo2788 ok pookie