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a potential risk could be problems with your insurance company or fire department if you have a house fire.
We had a fire at our rental property in Vancouver and were grilled by the fire department and insurance company about whether we had the proper licenses, things up to fire code, having a proper fire exit for the suites, etc. Everything we did was legal but talking to the adjustor, he told me some ppl have had trouble getting their claims approved due to having an unauthorized suite, not having things up to code, etc.
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