Legal Basement Suite & Main Floor Suite

7 Replies

I’m having an issue getting my 2 units insured. Is this classified as commercial? Multi family? What’s a reasonable rate for insurance? The insurance brokers that I have talked to sound confused and don’t know how to insure this. I have either been quoted $500/month or straight up refused. Any insurer recommendations for this (Edmonton, AB, Canada)? Any tips or info to better educate me? This is my first suite and I legalized it to get proper insurance coverage, now I feel hooped! Thanks!!

It’s just a house with a suite in the basement-maybe it’s the way you’re describing it to them that’s throwing them off? I pay about $130 a month for each of my houses with legal suites. 

@Cory S.

Check with the City zoning, but your property is probably classified a house with an ancillary apartment and not as a duplex.   However, neither would be commercial nor (technically) multifamily.

If the unit is conforming, insuring it should be straight forward.  I would also check with a local real estate investors association to get a name of insurance providers who are accustomed to handling rental properties.

Wow- $500 a month? Maybe it's different in Canada, but I have a couple places like this and my insurance is closer to $40 a month, and there's not problem or questions about how to insure them. I'd definitely call a few more insurance agents. In the US, commercial is 5 or more units, so this wouldn't be a commercial vs residential issue here.

I have a similar property in Edmonton, a bungalow with a legal basement suite. Our insurance is through Co-operators and is just under $200/month. We had no issues getting insurance, I have a friend with a similar property and he is paying around $140/month but I am not too sure who with.

I would just call around and couple different places and get some quotes.

Go on to the Canadian real estate site REIN, It is primarily western Canadian investors, they will have all the answers you need.

@Cory S. My wife and I have had no problems getting insurance for our Edmonton houses with legal basement suites. Feel free to PM me if you would like an insurance broker referral.

Thank you so much everyone! I found insurance though Co-operators and even cheaper through Insureline! Less than $160 haha. I had a bit of a panic there when companies kept telling me commercial insurance for $500. It may have been the way I was wording it! Regardless, thanks for all your help!

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