Do you find that your seven-unit plus rental property insurance premium is quite steep? Assurances Multi-Risques explains why.

We understand that your insurance premium has a direct impact on your rental property’s profitability and we want to help you to make the most of your situation. In a previous article, we had offered tips on how to reduce insurance premiums on six-unit and less rental properties. Today, we will focus on seven-unit and more rental properties. First of all, however, let’s say that six-unit and less rental properties are insured by personal lines insurers, while seven-unit plus rental properties are insured by commercial lines insurers.


Why does your property insurance premium go up every year?

Your property insurance premium can increase every year. Why is that? It’s because of inflation, which makes the cost of rebuilding your property go up year after year. To make sure that the annual increase is fair and that it accurately reflects your property’s rebuilding cost, we suggest that you compare the premium increase to the insurable value increase. One thing that you must avoid doing is to reduce your insurance coverage in an effort to decrease your costs. Remember that most commercial insurance contracts follow a proportional rule. To find out more about this, visit the following page: .

We are well aware that many rental property owners have been hit with substantial insurance premium increases over the last few years. Unfortunately, many insurance companies now refuse to cover seven-unit plus buildings because of too frequent claims that decrease the insurers’ profitability. Offer and demand rules! The fact that there are now less insurers willing to cover this type of property is the main reason why the premiums have gone up.


A few tips to decrease your rental property insurance premium

  • Choose an independent insurance broker;
  • Update your rental property insurance record yearly with the help of your insurance broker or agent;
  • Increase your deductibles;
  • Maintain your property;
  • Avoid making small claims. By doing this, you will avoid future insurance coverage problems and prevent sharp premium increases;
  • Consult your insurer. Some insurers offer rebates based on your credit rating;
  • Select your tenants carefully.


Whether you own one or several seven-unit plus rental buildings, it is important that you take the time to carefully analyse your situation with an insurance professional. By doing this, you can obtain adequate insurance coverage at an appropriate price. Lastly, avoid reducing your insurance coverage in an effort to decrease your costs since such a risk is probably not worth taking!