Insurance

    Insurance considerations fall into two different areas.

1. Tenant's Insurance
2. Owner's Insurance

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    Tenant's Insurance: Every tenant in a Life Lease should have their own insurance package for property loss of their personal contents (fire, theft, etc.) and for liability resulting from an event causing loss to others. For example: leaving a bathtub faucet running that results in flooding of common areas or other suites. Other issued such as loss of use of suite during repairs needs to be addressed by a tenant.

    Owner's Insurance: Every complex needs to have insurance coverage for the owner's areas of responsibility. this includes property loss such as the building, equipment and all furnishing for all common areas and insurance to cover liabilities arising from some event at the complex.

As per legislation the landlord shall assure that the total amount set out as "building and business contents insurance" is sufficient to comply with the requirement for replacement cost coverage. If the valuation of the complex is greater than the specified total amount, the landlord shall obtain additional all-risk insurance for the replacement cost in order to comply with Section 7(4)(a) of the Life Leases Regulation.

The Life Leases Regulations

  7(4) The landlord of a residential complex must obtain, before the occupancy date of the complex, and must maintain throughout the operation of the complex by the landlord.

      (a) all risk property insurance providing replacement cost coverage for the complex

The landlord shall assure that the tenants who have paid entrance fees are added as additional insureds, in order to comply with Section 7(6)(a) of the Life Leases Regulation. The landlord shall also assure that the tenants are so named under their property insurance, in order to comply with Sectiion 7(6)(c) of the Life Leases Regulation.

The Life Leases Regulations

  7(6) The landlord of a residential complex must ensure that

    (a) the tenants of the complex who have paid an entrance fee are added as additional insured under the general liability insurance obrained to satisfy the requirements of subsection (1) and (5)

     (c) if the landlord has entered into a life lease in respect of the complex before the coming into force of the Act and there is no mortgage securing tenants' entrance fees, the tenants of the complex who have paid an entrace fee are named as loss payees under the property insurance required by subsection (5)

    MLLOA is currently working with the insurance industry to develop helpful information for Life Lease tenants.

See Insurance Life Lease FAQ below provided by One Insurance.