The REIN Investor Guard policies include—at no extra cost—insurance coverage for many types of losses that are excluded in most other insurance policies.
REIN Investor Guard = Better Coverage!
To learn about the excellent coverage that is included in the Investor Guard for rented dwellings, click on any one of the links below.
- Replacement Cost
- Enhanced Replacement Cost
- Enforcement of Municipal By-laws
- Ice Damming
- Sewer Backup & Water Damage
- Vandalism or Malicious Acts By Tenants
- Rental Income
- Access Denied by Civil Authority
- Special Notes
The following coverages are included in REIN Investor Guard policies.
Vacancy: The REIN Investor Guard policy provides coverage for your property should it become vacant for any reason—for up to 120 days. This vacancy coverage is significantly longer than the allowable vacancy period of most policies! In addition, the REIN Investor Guard policy does not restrict your coverage for vandalism and water damage while your property is vacant, in contrast to most insurers who do impose restrictions.
Note: Periods of vacancy beyond a 120 day limit must be immediately reported to Park Insurance, to obtain continued permission for vacancy. Conditions for granting of permission for additional vacancy include: 1) all doors and windows be securely locked, 2) all rubbish be removed from within the described building(s) and premises, 3) buildings(s) must be checked a minimum of once a week, 4) you have shut off the water supply and drained the system and appliances of water, or you have maintained heat in the building and have made arrangements to assure heat is continued. Otherwise permission for vacancy and coverage shall be void. Contact us for details.
Replacement Cost: The REIN Investor Guard policy covers the cost to replace or repair damaged or destroyed property, regardless of building’s age, with new materials of like kind and quality without deduction for depreciation—up to the sum insured. (with Bylaws limited to $100,000)
Enhanced Replacement Cost: Enhanced Replacement Cost coverage is automatically included in the REIN Investor Guard policy. It provides even more protection than the Replacement Cost coverage, which is limited to the sum of the dollar value specified in your policy. Our Enhanced Replacement Cost coverage pays up to 15% above the limit of the insurance purchased, just in case it costs you a bit more to replace or rebuild your home after a covered loss. Automatically included for your peace of mind!
Enforcement of Municipal By-laws: This coverage comes into play when a loss results and the municipal building authority requires all repairs to conform to current building codes. This may necessitate a complete upgrading of the electrical, plumbing, heating systems, or other structural components. This is a most important coverage, which the REIN Investor Guard policy includes at no extra cost!
Flood Coverage: Unlike other policies, the REIN Investor Guard policy provides flood coverage on residential investment dwellings if there has been no flooding within the past 10 years. This coverage also includes “tear-out,” which means that any walls, ceilings or other parts of insured buildings or structures that, due to flooding must be torn out to complete repairs will be covered under this policy extension.
Earthquake Coverage: Although most insurance policies do not automatically cover this peril, the REIN Investor Guard policy does provide this coverage at no extra cost, depending upon the location of the property.
Ice Damming: Under the REIN Investor Guard policy you are covered for losses or damage resulting from the accumulation of ice or snow on the roof or eavestrough, which enters the dwelling through the roof. This coverage also includes “tear-out,” which means that any walls, ceilings or other parts of insured buildings or structures that, due to water damage, must be torn out to complete repairs will be covered under this policy extension. Why not take advantage of another coverage benefit that is unique to the REIN program!
Sewer Backup & Water Damage: In contrast to most policies, the REIN Investor Guard policy does not make a blanket exclusion for loss or damage caused by the backing up or escape of water from a sewer, storm drain, drain, sump, or septic tank. Once again, coverage for damage or loss due to these causes is available through the REIN Insurance Program! Talk to one of our customer service reps for details on the specified deductibles that apply.
Policies that include water damage coverage also get “tear-out” coverage, which means that any walls, ceilings or other parts of insured buildings or structures that, due to water damage, must be torn out to complete repairs, will be covered under this policy extension.
Vandalism or Malicious Acts by Tenants: This coverage is of particular concern to real estate investors and most, if not all insurance companies exclude this coverage from their standard policies. Under the REIN Investor Guard policy, members automatically get $50,000 in coverage, subject to a $1,000 deductible.
Contents: Contents coverage is still needed to protect the owner’s interest in the investment property’s appliances (stove, fridge, washer and dryer), together with any other portable property of the owner on the rental premises. These items are not covered by tenant’s insurance, (unless they are owned by the tenant).
Rental Income: The REIN Investor Guard policy provides protection against the loss of rental income when the property sustains damage from an insured peril that prohibits tenants from continuing to occupy or to conduct their business from the property. Rental income coverage enables you to still meet your mortgage or other financial obligations, despite the loss of rental income from the tenant.
Most other insurers place a dollar limit on the claim payout, which is based on the amount of insurance you purchased, and they usually have a co-insurance clause. The REIN Investor Guard policy provides coverage for the “actual loss sustained of business income” during the extended indemnity period of 18 months, which is not subject to a dollar limitation. This is a critical extension when a person considers that it can take more than a year to rebuild a dwelling, during which time there is no rental income.
Access Denied by Civil Authority: In the event that neighbouring premises to your investment property are severely damaged and access to your property is prohibited by order of civil authority, as described in your insurance policy, the loss of your rental income will be covered during this period of time, not exceeding thirty (30) days. This coverage applies when such a civil order is given as a direct result of damage to neighboring premises by a peril insured under your policy.
- Additional Living Expense
When a tenant is forced to move from a severely damaged rented dwelling into alternative premises, there exists “Additional Living Expense” insurance protection that the tenant is able to purchase for this type of situation. As the landlord, you are not responsible for protecting your tenant’s insurable interest. Rather, your tenant needs to purchase his or her own personal insurance coverage to be adequately protected.
- Drug Cultivation, Manufacture and Distribution
The REIN Investor Guard policy does not insure loss or damage to insured property however caused, which results directly or indirectly from any illegal substance activity. This exclusion will apply regardless of whether you are aware or unaware of such illegal substance activity or whether you are able or unable to control such illegal substance activity. However, the policy will cover any resulting fire damage.
IMPORTANT: Due to this exclusion – it is imperative that you maintain a regular inspection of your rental properties to avoid losses resulting from an illegal activity.