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Landlord insurance in Canada.
Rental property can be a good investment and a great way to increase your income.
It also comes with some risks.
Rental property insurance in Canada is different from standard home insurance policies.
At DirectRate.ca, our licensed brokers will find you the best landlord insurance policy at the lowest rate.
Whether you need landlord insurance for apartments, landlord insurance for a condo or landlord insurance for a house, we have you covered.
We work with insurance providers across Canada, so whether you need landlord insurance in Alberta or Ontario, we’ll ease the process by helping you compare rates to find the best deal.
We’ll also help you customize a policy to fit the type of rental property you own.
Best of all, our home insurance quotes for your rental property are 100% free.
How does it work?
Why use DirectRate.ca?
We’ll find you the best rental property insurance at the lowest rate.
We make comparison shopping easy, helping you save hundreds of dollars each year.
Our expert brokers will customize your policy, so you only pay for the coverage you need, nothing more.
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What is landlord insurance?
Landlord insurance, also called rental property insurance, is similar to standard home insurance in some ways.
For example, both types of insurance protect you in case your property is damaged by a covered event – also known as a specified peril. This could include hail, wind, fire, theft, vandalism or falling objects.
Even though home insurance and landlord insurance both offer coverage against damage to your property, there are some key differences.
The most important one to be aware of is that a standard home insurance policy generally does not apply if you rent out your property.
Typically, home insurance coverage applies only to your primary residence. It may or may not cover you for short-term rentals or renting out a portion of your living space, such as a bedroom to a roommate.
Connect with a licensed broker at DirectRate.ca to find out what sort of policy makes sense for your circumstance. Our recommendations are free and we’ll answer all your questions.
Give us a call today: 1-855-754-0350.
If you rent out an entire property to tenants on a long-term basis, you’ll need landlord insurance. In addition to explicitly covering you for property damage when tenants live in your rental unit, landlord insurance policies also protect you from some of the other special financial risks that go along with being a landlord.
Landlord insurance coverage often includes:
- Legal liability for injuries or property damage related to your ownership of the rental home.
- Loss of rental income if your tenants have to vacate the unit due to a covered event.
- Property damage from a covered event – also known as a specified peril.
In short, you can think of landlord insurance as a specialized type of home insurance for rental properties. This type of insurance is specifically tailored to protect you from financial risks unique to your position as a landlord.
Landlord insurance is just as essential to the long-term success of your rental property business as keeping up with maintenance and finding great tenants. It’s a way to protect your investment and provide you with peace of mind.
Types of landlord insurance coverage.
Landlord insurance policies often cover liability, property damage and loss of rental income if your tenants are forced to leave due to a covered event – also known as a specified peril.
However, coverage levels and the types of events or covered perils can vary from one policy and insurance provider to the next.
Most landlord insurance providers also offer optional add-ons.
The two most common types of policies include:
- Comprehensive: Some landlord insurance protects you from any type of property damage, regardless of cause. It’s sometimes known as ‘All-peril’ or ‘all risk’ coverage.
- Broad: Some policies only cover damage from specific perils.
While optional add-on coverages can vary from one insurance provider to the next, some common ones include:
- Burglary or theft. If landlord property kept on site, like maintenance or gardening equipment, tools, or furniture that’s included with a rental unit goes missing.
- Sewer back-up.
- Unpaid rent.
- Vandalism.
- Water damage may also be covered as optional extras.
Knowing these terms and options can be useful when you’re working with a licensed broker to customize your policy.
To receive free recommendations and have all your questions answered, call DirectRate.ca today: 1-855-754-0350.
Frequently Asked Questions about landlord insurance.
- If you own a rental property, yes.
- Having the right rental home insurance coverage protects you from serious financial risk in case your property is damaged or destroyed.
- In addition, landlord coverage is also revenue property insurance — it safeguards your rental income if a covered event, such as a fire, forces your tenants to move out.
- Most rental property policies also include landlord liability insurance, providing essential protection if someone is injured or has their property damaged in the rental unit.
- Landlord insurance for a rental property is specifically tailored to cover a property that you don’t live in yourself.
- Home insurance policies typically do not cover a property unless you are using it as your primary residence.
- Landlord insurance, on the other hand, protects your real estate investment by covering damage to your rental property and protecting you from expenses related to legal liability.
- Landlord coverage typically also replaces lost rental income if your tenants are forced to move out due to covered damage.
- Landlord insurance typically costs more than standard home insurance for the same property would.
- The common wisdom is that you can expect to spend about 15-20% more on rental property insurance.
- That’s because rental properties tend to generate more expensive insurance claims than owner-occupied homes.
- This may be due to a variety of factors. For example, people who live in homes they own tend to prioritize maintenance and safety in a way that may save insurance companies money in the long run. This can make landlord insurance policies more costly overall than home insurance policies.
- One of the ways that individual landlords can reduce the likelihood of insurance claims on their rental property is by keeping up with maintenance and ensuring the property is safe.
- Regularly inspecting the interior and exterior of the property for weather damage and wear and tear can help address problems before they become major challenges. For example, patching a roof after wind damage can protect your home from water damage from rain.
- Asking your tenants about any repair needs can help you identify other preventative maintenance needs, like leaks.
- This kind of attention can help prevent claims that can lead to increases in your insurance premiums. (And this will help keep your tenants happy too).
- No. Landlord insurance replaces standard home insurance when the home is one you rent out to tenants on a long-term basis.
- A landlord insurance policy will cover damage to your rental property in much the same way a home insurance policy covers damage to a home you own and live in.
- However, home insurance policies generally only cover your primary residence.
- Landlord policies are designed to cover homes that are not your primary residence and that are rented out. Their coverage is designed to provide the additional protection that landlords need.
- It depends. If you own your home and want to rent it out occasionally – when a popular sports event draws tourists to your city, for instance – your regular home insurance policy may cover you.
- Review your policy documents or contact your insurance provider to be sure. There may be limitations on how long the property can be rented out or how often you can do this and maintain coverage.
- If the property you want to use for short-term rentals isn’t your primary residence – say you plan to list it consistently on a site like Airbnb – a standard home insurance policy typically won’t cover this.
- DirectRate.ca works with some carriers that offer coverage for short-term rentals.
- A licensed broker will review the type of policy you qualify for as well as the conditions of coverage. For example, some carriers require that short-term rentals are rented out via a platform such as Airbnb.
- Connect with a licensed broker to find out more about specialized coverage for short-term rentals: 1-855-754-0350.
- Explain your plans for your rental property and we’ll help you compare policies to find the right insurance product for your needs.
- For free recommendations, give us a call today: 1-855-754-0350.
- Some standard home insurance policies may cover you if you have a renter who shares your living space.
- Review your policy’s terms since the terms of each policy can vary.
- If your home insurance policy doesn’t cover this, a different home insurance policy likely will.
- Speak with a licensed broker who will help you understand your options: 1-855-754-0350.
- Landlord insurance policies are typically designed to cover properties that you don’t live in yourself.
- Some standard home insurance policies will cover a limited number of additional rental units as long as you live in one apartment on the property yourself.
- Or, a home insurance policy that just covers your own living space may have an option to extend coverage to the additional units that you rent out.
- In other words, as long as the building you own is fairly small-scale (about four rental units or less) and you keep one apartment as your primary residence, there’s a good chance you can find a home insurance policy that will meet your needs.
- Landlord insurance typically assumes you don’t live on the insured property.
- Connect with a licensed broker at DirectRate.ca to review your options and get free recommendations: 1-855-754-0350.
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Rental dwelling insurance typically covers:
- Damage to belongings you keep on site, like tools, a lawnmower, etc.
- Damage to the rental property itself.
- Legal liability relating to property damage or injuries that happen on your rental property.
- Some landlord home insurance policies also cover your lost rental income during repairs. It’s typically an endorsement added to the policy rather than a coverage included in its base cost.
- Additional structures on the property, like a shed or garage, are usually also covered by a landlord insurance policy.
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Many insurance companies also offer optional add-on coverages. These can include:
- If tenants vandalize or steal furniture you own that’s included in their rental unit.
- Protection against unpaid rental income if your tenants default on their rent payments or pass away.
- Some companies offer optional coverage for sewage backup, certain types of water damage, car collisions with the property, appliance replacement and more.
- No. While a standard home insurance policy covers your personal possessions in your home, a landlord policy covers the property but not your tenants’ personal items.
- This is why it’s a good idea for your tenants to have renter’s insurance. Some landlords require their tenants to carry this insurance coverage.
- Looking for cheap landlord insurance? It can be helpful to understand how insurance companies determine landlord insurance rates. There are several factors insurers use to set your premium.
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Here are the common factors insurance companies take into account:
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How close the property is to emergency services. If your rental property is in a city like Toronto, very close to a fire department and a fire hydrant, this means your insurance company is less likely to be on the hook for major fire damage. They may offer you a cheaper insurance rate as a result.
However, if your rental property is in a rural area far from the nearest fire department with no hydrants in sight, then your insurance premium is probably going to be higher.
- Likelihood of natural disasters and harsh weather in the area. Since your policy will likely cover the cost of damage from events like wind, hail and falling trees, the higher the chance of this kind of severe weather in your region, the more your landlord insurance is likely to cost.
- Neighborhood crime rates. Neighborhoods with lower crime rates tend to be seen as safer bets for insurance companies covering rental properties, too.
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The deductible you choose. The lower your landlord insurance deductible, the higher your premiums are likely to be. Your deductible is the amount of expenses you are responsible for covering before your insurance policy kicks in and covers additional costs.
The sweet spot for your deductible will allow you to manage your share of costs in the event of damage, but will keep your monthly premiums within your budget, too.
- The property’s value. This is impacted by factors like location, size and building materials.
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What level of coverage you prefer. More coverage typically means higher premiums. Some people prefer more protection and lower risk. If this sounds like you, you may opt for all-perils coverage with optional add-ons for unpaid rent due to tenant default.
Other landlords prefer to save on insurance premiums and have more basic coverage. If this is more your style, you might choose a specified perils policy with a higher deductible and no optional extras.
This is a matter of preference. Just make sure you know what your policy covers, and what it doesn’t, and that you’re comfortable with it.
- Whether the property includes a fireplace or pool. These can increase the risk of property damage or injury and can drive your premiums higher.
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- As you can see, some aspects of your landlord insurance cost are within your control and others aren’t.
- Talking to a licensed broker who’s an expert on landlord insurance coverage can help you sort through your options and find the best policy for your situation, at the best price.
- Call DirectRate.ca today to receive free recommendations: 1-855-754-0350.
- To get the best rate on landlord insurance, there’s no way around it: you have to comparison shop. This means getting quotes from multiple insurance providers.
- Contacting multiple insurance companies can be time-consuming and confusing. It can be difficult to understand the differences between policies and whether optional add-ons are worth it.
- Fortunately, DirectRate.ca streamlines the process. Just enter your information and quickly and easily compare quotes from the 10+ best insurance companies in Canada.
- Then, call 1-855-754-0350. A licensed broker will answer all of your questions and lock in a great rate. We’ll also help you ensure you’re getting all the landlord coverage you need, and none that you don’t.
- Our recommendations are 100% free.
- We take all the hassle out of landlord insurance and a little bit of the hassle out of being a landlord.
- Let DirectRate.ca provide you with peace of mind that comes from protecting your rental property investment at the best insurance rates available.