How House Fires Could Be Your Hottest Investment Yet: The Untapped World of Insurance Rentals
By Stuart Lessels, your "Go To" Mortgage Broker for Georgian Bay and Beyond
Picture this: a family is jolted awake in the middle of the night. Smoke. Flames. Chaos. Within hours, their home is uninhabitable, and they’re left scrambling for a roof over their heads. Enter you — the investor with a clean, cozy, fully furnished home ready to save the day… and earn steady, premium income in the process.
Welcome to the under-the-radar world of insurance rentals, a niche that combines compassion with cash flow.
What Is an Insurance Rental?
When disaster strikes — house fires, floods, or other damage — insurance companies are responsible for putting displaced families into temporary accommodations. Often, this means hotels. But hotels can be cramped, impersonal, and wildly expensive.
That’s where your furnished rental property steps in as the hero.
Instead of renting to long-term tenants, you rent directly to insurance companies. The insurer becomes your client, footing the bill for a temporary home that feels like, well, home. These stays can range from a few weeks to several months, depending on how long repairs take.
Why This Niche is So Damn Sexy (Yes, Sexy!)
Let’s be honest. Traditional rentals have their moments, but also their migraines:
- Chasing late payments 💸
- Tenants ghosting you 👻
- Plumbing emergencies at 3 a.m. 🚽
- That one guy who insists on using the backyard as a scrap metal yard 😩
With insurance rentals, most of that stress disappears:
- You get premium rates, often 20–50% higher than regular rent.
- Your “tenant” is a deep-pocketed insurer.
- You won’t face eviction issues — these families want to move back into their own home.
- You’ll likely be fully booked if your property is near an urban centre.
Real Math. Real Money.
Let’s do a back-of-the-napkin calculation. You buy a modest home for $800,000 and furnish it for $20,000. You list it as an insurance rental at $6,000/month. The family stays for four months. That’s $24,000 in income. Insurers typically cover rent, utilities, furniture use, and even damages.
And remember: your interest payments? Tax deductible. Furniture? Write-off. The goodwill? Priceless (but also a marketing goldmine).
How to Get Started:
1. Furnish the property smartly.
2. Get proper insurance.
3. List on relocation platforms or connect with insurance agents.
4. Get pre-approved (that’s my department 😉).
5. Track, manage, and repeat.
Wrap-Up:
Want to explore how this could work for you — or get pre-approved for your next insurance rental opportunity?
Until next week’s niche…
— Stuart Lessels
Your "Go To" Mortgage Broker for Georgian Bay and Beyond
📞 (705) 445-1234