Landlord Insurance

Although it’s not a legal requirement for your tenants to have renters’ or tenants’ insurance, it’s recommended you encourage your tenants to purchase their own insurance policies to cover damage to or loss of their belongings. Renters’ insurance will also provide your tenants with liability coverage if they accidentally damage your property. A landlord insurance policy will not cover any losses of or damages to your tenants’ possessions, such as their furniture and clothing.

A home insurance policy is designed to protect a private homeowner’s primary residence and personal possessions, and it provides liability coverage for you and your family. If you’re renting a room or the basement in your home where you live, your private home insurance may offer some level of coverage for that space. However, private home insurance does not cover any properties you rent or lease.

Landlord insurance covers the cost of damage or loss at rental properties. It includes coverage for the dwelling, its attached structures, the contents at those properties you own, your liability from owning the property, and loss of rental income following an insured event, such as fire and smoke damage.

No. A landlord insurance policy is not mandatory for rental properties in Canada. However, it is highly recommended to purchase a policy to protect yourself and the property from unexpected damages or third-party lawsuits. You are leaving yourself exposed to significant financial risk if you don’t have a policy to protect your property.

It depends. Most landlord insurance policies will cover a rental property from named perils, like damages from severe weather. If a tenant accidentally causes damage, such as a kitchen fire that destroys appliances, it may pay for the cost to repair or replace the appliances, any structural damages, and the rental income you lose while repairs are being made. However, if a tenant intentionally damages your property, such as punching a hole in a wall, the policy may not reimburse you for paying for that repair. Likewise, a landlord insurance policy does not cover the cost of maintenance-related issues. You are responsible for the upkeep and maintenance of the property. Also, it does not include coverage for household equipment breakdowns such as a malfunctioning furnace, dishwasher, or stove.

Yes. There are additional or optional coverages you can include in a general landlord insurance policy. For example, you may wish to add sewer backup coverage to the policy to protect your property to cover any damages to the sewer line that runs from your building to the municipal sewer drainage system. Should the sewer malfunction and wastewater from the sewer or a septic tank seep into your building, there could be significant damages to the building’s floors, walls, and other structures.

You may also want to consider adding what’s known as overland water coverage, which safeguards the property from damages resulting from a flood, excessive rain, snow melt, or overflowing lakes or rivers. Not all insurance companies will provide you with overland water protection, so speak to a licensed broker about finding an insurer that will provide this type of coverage for your property.