What Does Landlord Insurance Cover in Alberta?

Dwelling Insurance

Dwelling insurance in Alberta protects the physical structure of your building and the shared areas against risks like fire, theft, vandalism, accidental tenant damage, and certain severe weather events. It also provides contents coverage for any belongings the landlord leaves on the property, including appliances, lawn equipment, and furniture in shared areas. This insurance policy can include coverage for detached and attached structures, such as garages and fences.

Liability Coverage

Personal liability insurance is a crucial component of rental property coverage. It protects you if a tenant or a guest is injured on your property and holds you responsible, or if you accidentally cause damage to someone else’s property. Without this coverage, you’ll find yourself paying tons of money out of pocket in legal fees, medical expenses, and repair costs that could have been easily avoided with personal liability coverage.

Loss of Rental Income Insurance

Landlords and real estate owners have invested significant time and money into their properties, expecting steady passive income in return. However, this steady stream of income can stop abruptly if an insured event, such as fire, forces your tenants to move out. Rental income coverage protects you against financial losses caused by missed rental income while your property is being repaired or rebuilt after an insured loss.

Beyond the Basics: Additional Coverages Every Landlord Needs in Alberta

Although the basic landlord insurance policies offer solid protection against risks like fire, theft, and liability claims, they still fall short when it comes to less common events. Perils like overland water damage, earthquakes, and floods can leave your property facing costly repairs.

That’s where these additional coverage options step in:

Enhanced Water Damage Coverage

Landlords in Alberta need enhanced water damage coverage because flooding, sewer backups, and sudden overland water events are becoming more frequent across the province. Although some standard rental property insurance policies cover sudden water damage caused by burst pipes or leaking appliances, it doesn’t extend to flooding or sewer backups. That’s why we recommend purchasing an enhanced water damage endorsement in Alberta to ensure comprehensive protection against damage caused by sewer backup and overland water.

Sewer Backup Insurance

A sudden sewer backup is one of the most frustrating and costly accidents a landlord can face in Alberta. You can’t really expect it when it happens because it often strikes without warning, usually after heavy rainfall, melting snow, or when municipal systems become overwhelmed. Sewer backup insurance helps cover the costs of cleanup, repairs, and restoring damaged fixtures or flooring.

Overland Water Insurance

Overland water insurance protects rental properties against damage caused by flooding from excessive rain or melting snow. Overland water damage can be very costly to repair, especially if it causes foundational damage or if the water enters the dwelling through windows or basements. In Alberta, where rapid snowmelts and heavy rains are common, this coverage is a no-brainer for landlords and real estate investors.

Flood Insurance

Flood insurance is a specific type of coverage that protects against damage caused by riverine flooding, storm surges, overflowing lakes, and other external water sources entering your property. Although Alberta doesn’t have a coastline, it’s still vulnerable to flooding caused by overflowing lakes or rivers, like the catastrophic flood that hit southern Alberta in 2013. For as little as $10 to $30 per month, landlords can add this coverage to their rental property insurance and protect their investment against unexpected events.

Rent Default Insurance

Rent default insurance, also known as non-payment of rent insurance, compensates landlords if a tenant refuses to pay rent or suddenly vacates the property without notice. It also supports the landlord financially if they decide to evict the tenant for violating the lease terms, not paying rent, or causing significant property damage.

Earthquake Insurance

Although natural earthquakes usually don’t cause significant damage in Alberta, there has been an increase in detected seismic events in recent years, which puts some properties at potential risk. Earthquake coverage protects your building if ground movements cause foundational or structural damage to your rental property.

If you’re looking for the best protection at the right price, our expert insurance brokers at Sharp can help you find a landlord insurance policy that covers all your needs. Request a free online quote and let our team handle the rest for you.

How Much Does Landlord Insurance Cost in Alberta?

Landlord insurance rates can start as low as $300 annually for basic coverage, but on average, most landlords in Alberta pay between $500 and $1,200 per year, depending on several factors. While the cost may vary from one insurance provider to another, our experts at Sharp can get you competitive, hassle-free insurance quotes for your rental house, condo, or multi-unit property. We know that getting a fair rental insurance quote is important for you, which is why our brokers at Sharp make the process efficient and transparent. Our goal is simple: to help you find reliable coverage that aligns with your goals and fits your budget.

Is It Possible to Get Cheap Landlord Insurance in Alberta?

Getting affordable landlord insurance in Alberta is possible with Sharp; follow these smart tips from our insurance experts to lower your landlord insurance rates:

• Bundle Insurance Policies: One of the most effective ways to lower your insurance rates is by combining multiple insurance policies into one bundle. For example, you can bundle landlord coverage with homeowners’ insurance or commercial property insurance to get a discounted rate.
• Compare Landlord Insurance Quotes: Shopping around and comparing quotes from different insurance companies can help you get better insurance rates. This process can be very time-consuming, so it’s better to work with an experienced insurance broker like Sharp.
• Invest in Security Features: Installing safety devices and security features not only protects your rental home or condo, but it can also lower your insurance rates.
• Maintain a Clean Claims History: Maintaining a clean claims history and only filing when necessary can help keep your premiums lower over time.
• Partner with Sharp: Our brokers at Sharp know the ins and outs of landlord insurance and understand the challenges that property owners face in Alberta. We compare quotes on your behalf and provide you with the best coverage from a reliable insurance provider, making it easy to protect your rental property.

Is There Anything that Alberta Landlord Insurance Doesn’t Cover?

Although landlord insurance offers comprehensive protection, there are some common exclusions that property owners should be aware of, including:

• Intentional Damage: Generally, insurance doesn’t cover intentional damage caused by tenants or anyone else on the property.
• Wear and Tear: Insurance doesn’t cover deterioration, such as faded paints, worn carpets, leaky faucets, or aging appliances.
• Mould and Pest: Mould and pest infestations are considered maintenance issues, and they are not covered by insurance.
• Tenant’s Belongings: Tenant’s possessions, including furniture, clothes, and electronics, aren’t covered by the landlord’s insurance policy; instead, they’re covered by the tenant’s insurance policy.
• Routine Maintenance: The costs of fixing minor maintenance issues, like leaky faucets, chipped paint, clogged drains, or broken light fixtures, aren’t covered by landlord insurance.
• Certain Natural Disasters: Some natural disasters and severe weather events, including floods, rapid snowmelt, and earthquakes, aren’t automatically covered by standard landlord insurance. However, you can get these additional coverages as endorsements or separate policies.