Laneway Home Insurance

Should I Get Basement or Laneway Home Insurance?

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Are you ready to join the ranks of Vancouver homeowners who rent out a basement suite or a laneway house to help pay the mortgage? One of the best things that you can do to protect your financial future is to contact your insurance agent to discuss basement and laneway home insurance. Read on to learn why updating your insurance policy is a must-do before you interview your first tenant.

Don’t forget to update your homeowner’s insurance policy.

Without question, you must let your insurer know that you have a laneway home on your property. The laneway house is a much more valuable building than, for example, a garage or storage shed and you need to make sure that your homeowner’s policy reflects the value of the laneway in addition to the primary structure.

If you’re planning to rent out a basement suite or laneway house, you must inform your insurance agent before you sign a contract with a prospective tenant. Notifying your insurer before renting out space is crucial since your insurance company might not cover you if you’re renting out part of your primary residence without adjusting your policy to include the rental. Indeed, the Real Estate Board of Greater Vancouver warns that your insurer might refuse to cover damage to your property if it discovers that you’re not carrying appropriate basement suite or laneway home insurance.

The good news is that changing your insurance coverage to account for a rental unit isn’t expensive. You can expect to pay approximately 10% more for updated insurance coverage.

Consider landlord insurance

Along with updating your homeowner’s policy, you might also consider taking out landlord insurance if you’re planning to rent out your secondary suite. Landlord insurance gives you such benefits as

  • Protection against vandalism and damage to the rental unit
  • Rental income coverage
  • Enhanced liability coverage

Lastly, a basement suite or laneway house adds significant value to your home. Protect the financial and emotional investment that you’ve made in your home by making sure that you’re adequately insured. Your insurance broker knows how to design a package of basement and laneway home insurance that meets all of your needs.

Silvercrest Custom Homes and Renovations specializes in creating basement suites and laneway homes for homeowners all over the Vancouver area. Contact us for an introduction to our services.

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