Landlord Insurance in Canada

Investing in real estate can be lucrative in both the short and long term. But have you considered, or are you currently, renting out your space to tenants? Whether you’re finding a suitable residential rental property or looking for prospective tenants, being a landlord has its risks. This is where a comprehensive insurance policy comes in.

Get a free landlord insurance quote from one of our skilled brokers. Read on for more information about landlord insurance and how the right coverage can help you protect your investment property.

What is the Difference between Landlord Insurance and Renters Insurance?

Landlord insurance and tenant insurance, also known as renters’ insurance, cover different things and serve different purposes.

• Landlord insurance protects the property owner’s investment in a rental property. It covers the property’s structure and the landlord’s belongings. It also provides loss of rental income coverage and liability coverage for the landlord.
• Tenant insurance protects the belongings of the tenant and offers them personal liability coverage. Many landlords require renters to hold tenant insurance.

Landlord insurance is separate from tenant insurance, and these policies do not overlap, thus making it more necessary for both to exist to insure both parties. Landlord insurance can spare your operations from a particularly nasty loss and provide you with the necessary financial reimbursement to keep your operations going.

Landlord Insurance Endorsements

Additional coverage is useful when you need extra protection against common perils. Endorsements provide extra coverage that adds to the cost of your insurance policy.

• Enhanced water damage coverage protects landlords against water damage due to sewer backup, overland water, and water lines.
• Sewer backup coverage protects against water damage caused by sewage or wastewater that backs up into the home.
• Overland water coverage safeguards the property from damage resulting from flooding due to excessive rain or melting snow.
• Flood insurance offers coverage against water damage due to a burst pipe.
• Earthquake insurance may be available as an endorsement to cover earthquake-related damages.
• Non-payment of rent insurance compensates landlords if a tenant refuses to pay rent and covers related legal fees.

What Does Landlord Insurance Not Cover?

There are certain limitations to landlord insurance. Typically, it does not cover any damages that affect your tenant’s property, including any furniture they bring into their unit, appliances, electronics, clothes, equipment, and more. It only includes your personal belongings. If the tenant’s belongings are damaged, they can get reimbursed through their own tenant insurance policy.

It also will not cover tenants if they are legally liable for someone else’s injuries or property damage.

Damage caused by wear and tear, as well as a lack of proper maintenance, is also not covered by insurance. It’s your responsibility as the landlord to upkeep the rental property and fix any damage, like replacing an old roof or repainting the walls. It’s important to ensure that the tenant reports all damage for you to handle promptly.

Depending on the policy, not all natural disasters are covered by Rental property insurance policies. For example, most landlord insurance policies don’t include floods and earthquakes. For that, you need specialized flood insurance or overland water coverage, or earthquake coverage. Sewer backup insurance is also purchased separately.

Basic landlord insurance does not cover vacancies in your unit. So, if your property is vacant for a long time, coverage may not apply.

Finally, like all other insurance coverages, intentional or criminal acts are excluded from coverage.

Factors that impact a landlord’s premium

• Property value: The higher the property value is, the more expensive premiums get.
• Property square footage: A small condo is cheaper to insure than a house.
• Number of units of the property: The more units, the higher the insurance price.
• Property location: Different locations have different crime rates and claims stats. Natural disasters are also taken into consideration.
• Building materials: Expensive, rare materials increase the property value and insurance premium rate.
• Year the property was built: Old houses are considered more risky due to outdated heating, electricity, and plumbing systems, so they cost more in insurance premiums.
• Insurance history: Having previous claims signals to insurance companies that you are high-risk.

Why Choose Sharp Insurance

Sharp Insurance Provides Fair Insurance Coverage

As one of Canada’s top insurance brokerages, we work to get you the insurance you deserve. We believe in giving our customers as many options and cost savings opportunities as possible so that they can be confident that their landlord insurance won’t be an expense that tremendously offsets the revenue they generate from their rental activities.

Highly Trained Insurance Brokers

Moreover, our landlord insurance brokers are highly trained and dedicated to working for you. Before advocating on behalf of an insurance provider, we advocate on behalf of you. We do the heavy lifting for you and work hard to find you rental property insurance or landlord insurance that is most suited to your needs.

Digital Round-the-Clock Assistance

You can also benefit from getting in touch with us over the phone, our online portal or app, social media, e-mail, or in person. We offer a myriad of service options you can choose which is most convenient for you.

Get a Free landlord insurance quote.

What Are the Landlord’s Responsibilities and Risks?

Landlords have responsibilities towards their rental property and tenants. Knowing them prevents incidents that may void your insurance or lead to rejected claims. Below are some of the general rules.

• If a property is left vacant, landlords may need to purchase additional coverage as standard policies often do not cover vacant homes.
• Insurance companies may look at a landlord’s claims history when determining insurance premiums; thus, filing too many claims can increase costs.
• Landlords should conduct regular inspections of their rental properties to ensure that safety and maintenance standards are met.
• Landlords must respond promptly to tenant complaints or requests for repairs to prevent small issues from escalating.
• Under the Residential Tenancies Act, landlords must give proper notice before entering a tenant’s rental unit, usually 24 hours unless in an emergency.