Insurance Liability Quiz

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Questions and Answers

What are the primary purposes for which the Tenant may occupy the Leased Premises?

Residential occupation only (correct)

Commercial use only

Shared rental services

Vacant property maintenance

What responsibility does the Tenant have regarding the smoke detectors?

Remove smoke detectors when not in use

Replace smoke detectors annually

Install new smoke detectors if required

Advise the landlord if smoke detectors are non-functional (correct)

Which of the following activities is not allowed in the rental unit?

Using the unit as a simple home office

Partnering with Airbnb for rental income (correct)

Storing personal items in common areas

Subletting the unit to friends

What should the Tenant do if they anticipate a new occupant in the rented unit?

Inform the landlord of the new occupant's name and age Signup and view all the answers

What are the Tenant's responsibilities regarding repairs for damage caused by neglect?

The Tenant is responsible for all repair costs except normal wear and tear Signup and view all the answers

Which law does not apply if the rental unit is used predominantly for reasons other than residential tenancy?

Residential Tenancies Act Signup and view all the answers

What is required of the Tenant regarding guests or visitors at the rental unit?

The Tenant must ensure guests abide by rental rules Signup and view all the answers

What type of business operation is permitted from the rental unit?

Simple home office activities Signup and view all the answers

What is the minimum amount of insurance coverage required for third-party liability by the Tenant?

$1,000,000 Signup and view all the answers

What happens if the Tenant fails to provide proof of insurance coverage?

The Tenant will be considered self-insured. Signup and view all the answers

Which of the following must be excluded in the Tenant's insurance policy?

Claims against the Landlord Signup and view all the answers

How is the Agreement construed in the case of an invalid provision?

The invalid provision is reformed to be enforceable. Signup and view all the answers

What does the Tenant indemnify the Landlord against?

Claims resulting from tenant's occupancy or use of the Premises Signup and view all the answers

What legal jurisdiction governs the Agreement?

Ontario Signup and view all the answers

Which of the following is NOT a responsibility of the Tenant regarding insurance?

Paying for the Landlord's insurance Signup and view all the answers

What could occur if the Tenant cancels their insurance coverage?

The Tenant remains liable for any subsequent claims. Signup and view all the answers

What must a Tenant do before assigning or subletting the premises?

Obtain written consent from the Landlord Signup and view all the answers

What does the Tenant need to ensure about the premises when vacating?

Clean and remove all furniture and refuse Signup and view all the answers

How often is the Tenant required to have the rental unit professionally cleaned?

Every six months Signup and view all the answers

What type of insurance is the Tenant responsible for obtaining during the tenancy?

Liability, property damage, and contents insurance Signup and view all the answers

What is a requirement for subletting the premises according to the agreement?

A copy of the sublease must be provided to the Landlord Signup and view all the answers

What happens to the keys and fobs upon the termination of the lease?

The Tenant must return them at their own expense Signup and view all the answers

According to the content, under what condition may the Landlord charge an administrative fee?

In respect of the expenses associated with granting consent for a sublet Signup and view all the answers

Which of the following is true regarding the condition of the appliances when vacating?

They must be left in immaculate condition Signup and view all the answers

Study Notes

Insurance Requirements

Minimum coverage for third-party liability is $1,000,000.
Insurer cannot claim against the Landlord or responsible parties for the Landlord.
Proof of insurance must be provided by the Tenant upon request.
Failure to provide proof or maintain insurance puts the Tenant at risk for self-insurance.

Legal Framework

Agreement governed by the laws of Ontario.
Invalid or unenforceable provisions do not affect the remainder of the Agreement.
Such provisions may be modified to the fullest extent permissible by law.

Indemnification Clause

Tenant agrees to indemnify Landlord against claims related to:
- Loss of life
- Personal injury
- Property damage from Tenant's occupancy or actions.

Usage Restrictions

Leased premises are for residential purposes only; limited use for home offices allowed.
No illegal activities permitted within the rental unit or complex.
Prohibition on rental businesses like Airbnb or VRBO.
If usage deviates from residential, the Residential Tenancies Act does not apply.

Occupant Notification

Tenant must notify Landlord of new occupants with their names and ages for safety reasons.

Tenant Responsibilities

Tenant must maintain cleanliness of the unit; responsible for damages beyond normal wear and tear.
Specific responsibilities include repair of broken items and maintenance of smoke detectors.

Assignment and Subletting

Tenant cannot sublet or assign the unit without prior written consent from the Landlord.
Requests must be made in writing and may incur administrative fees.

Move-Out Conditions

Rented premises must be left ready for new occupancy, ensuring cleanliness and removal of personal items.
Specific cleaning tasks include:
- Clean all fixtures and appliances.
- Defrost and keep the refrigerator running.

Professional Cleaning Requirement

Tenant agrees to have the unit professionally cleaned every six months to the Landlord's satisfaction.

Key Management

Tenant acknowledges receiving one main door key and is responsible for returning all keys at the end of the tenancy.

Insurance for Contents

Tenant must obtain liability, property damage, and contents insurance to cover full anticipated insurable loss based on replacement cost without depreciation.

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Description

Test your knowledge on third-party liability insurance, focusing on coverage amounts and exclusions pertinent to landlords and tenants. This quiz examines critical areas of insurance policies and required proof of coverage. Understand the implications and responsibilities required in such agreements.