July 6, 2018 13:30
Photo : Freepik
A survey of theQuebec landlords Association reveals an unsettling situation for the insurance industry. Home insurance is at the bottom of their priorities.
To the question » If the law could not be changed for a thing, for whom would you vote ? «, 49,34 % of the 300 respondents indicated that » A security deposit «. The obligation of the tenants to purchase insurance came in the last position with 7,42 % of the votes.
Is this figure of 7.42 %, reflecting the importance the owners attached to the possession of insurance for their tenants ? No, said the Association’s president, Martin Messier, in interview to the Newspaper of insurance.
«The respondents were asked to choose one single priority and classify it. For close to half of them, it was the security deposit. It is far to mean that the rental insurance is not important for owners. Moreover, to 7,42 % of them, the obligation to have home insurance was the first priority. «
Difficult to enforce
To the knowledge of Martin Messier, no province in Canada requires the tenants to purchase home insurance. Quebec is no exception. However, owners in quebec are in the lease that the tenant is required to have a home insurance. It is very difficult to know whether this provision is respected or not, according to Mr. Messier.
«As long as this will not be an obligation enshrined in law, it is extremely difficult to track, whether the tenant has paid his premium and / or process the renewal and it has not done so, go to the Régie du logement du Québec to obtain a prescription. The process is so cumbersome and daunting that few homeowners go to the end «, he added.
The benefits of home insurance
Mr. Messier said that the apartment owners have a vested interest in ensuring that their customers have home insurance, because their own premium will be less affected in the event of a claim if the liability is the responsibility of the tenant. In addition, in the event of a major disaster, fire, flood, or other, the owner avoids the problems of relocation of tenants, because their own insurance company in charge of this task and the insurer of the owner can possibly pursue the insurer of the tenant to civil liability.
The owners have been able to observe that the tenants seem to be more conscious of when they purchase a home insurance. They are more aware of their responsibility and do not reject in full on the back of the owner.
The news reports frequently that tenants have lost everything following a fire because they were not insured. Even if the tenants have as much interest as the owners to have home insurance in case of disaster, Mr. Messier is believed that less than 50 % of the tenants have this type of insurance that would provide a true personal protection.
Although the owners have a lot to gain that the tenants are required by law to have a home insurance, Mr. Messier wants to be the reflection of a survey of its members and said that its priority in terms of expectations of the government focuses first on the security deposit at time of rental.
Legalization of cannabis
In the interview, the president of the Association also expressed concern about consequences and impacts of the legalization of cannabis on the housing. He feared in particular the additional risks that the use of cannabis may result in those who smoke. The cigarette is already the source of fire in buildings, the cannabis will, said Mr. Messier, who fears the impact of this practice on insurance premiums.
«I’m not an expert, but we may reasonably assume that someone who smokes cannabis may be likely to fall asleep eating, he comments. In the long term, if there is a spike in fires related to cannabis in the apartment buildings, it could increase our premiums if there is an increased risk. This fear is very real for owners of buildings to housing. «
The Association expects the landlords to avail themselves of a provision of the quebec Act on the supervision of the cannabis (Act 157), which will allow owners to send in 90 days that will follow the entry into force of the act a notice of reopening of the leases giving them the opportunity to include the prohibition of smoking or using cannabis in their home.
The results of the survey of the Association of Quebec landlords
If the law could not be changed for a thing, for whom would you vote ?
• Security deposit : 49,34 %
• Enable to set the rent at the market price when the tenant leaves : 13,1 %
• To allow the free negotiation of rent increases : 10.04 per cent
• That the acts of destruction are treated as criminal : 9,61 %
• Saisissabilité social assistance and income of the State : 7,42 %
• Obligation of the tenants to take out home insurance : 7,42 %