Plex owners: what your policy covers
Whether or not you live in one of the units, you insure the whole building and your liability as an owner. Your tenants insure their own belongings.
What your policy pays for
1
The building
All units, stairs, balconies and the roofExampleA fire starts on the 2nd floor and damages all three units. Your policy pays to rebuild the building.
2
Your belongings
Those in your own unit if you live there, and appliances you provide to tenantsExampleThe appliances you provide on the ground floor are destroyed. Your policy replaces them.
3
Accidents on your property
Owner’s civil liability · in the building and on the lotExampleA tenant falls on the icy outdoor staircase and breaks a wrist. If they sue you, your liability coverage pays.
4
Your lost rent
Loss of rental income · during repairsExampleAfter the fire, two units are unlivable for four months. This coverage repays the lost rent.
5
A place to stay during repairs
Additional living expenses · if you live in the buildingExampleYou have to move out during repairs. Your policy pays what it costs you beyond usual.
What often surprises people
Tenants’ belongings aren’t covered. Put in the lease that each tenant must have their own insurance, and ask for proof.
Declare the number of units and how they’re used. A short-term rental unit or a shop on the ground floor changes the risk.
Stairs and balconies are your responsibility. A poorly maintained staircase can complicate a claim. Keep records of maintenance and snow removal.
Who pays in these situations?
| What happens | Who pays |
|---|---|
| The 2nd-floor bathtub overflows into the ground-floor unit | Your policy repairs the building. The ground-floor tenant’s belongings: their own policy. Your insurer can recover from the tenant who caused it. |
| A fire forces tenants to move out | Their relocation costs: their own policy. Your lost rent: your loss of rental income coverage. |
| A visitor falls from a balcony whose railing gave way | Your owner’s liability coverage. |
| A tenant’s bike is stolen from the yard | Their own policy, not yours. |
Before you renew, check
- Does your policy include loss of rental income?
- Are the number of units and their use correctly declared?
- Do your leases require tenants to carry insurance?
- Do you know your liability limit?
Other profiles: Tenant · Condo owner · Homeowner
A question about your own policy?
This site explains the general rules. Only your insurer can say what your policy covers: ask your agent or broker. This site doesn’t make recommendations. To choose coverage, also talk to a certified professional.
- Check an agent or broker: AMF register, at lautorite.qc.ca
- Insurance information: Autorité des marchés financiers
- General insurance questions: Centre d’information sur les assurances, 514-288-4321 or 1-877-288-4321
- Injuries in a car accident: SAAQ
- Professional conduct: Chambre de l’assurance de dommages