Landlord Insurance in Manitoba
Everything You Need to Know About Rental Property Insurance in Manitoba
Investing in Manitoba is one of the best choices anyone can make. Its stable economy and affordable properties encourage landlords to enter the investment market with confidence Landlord insurance protects your investments from possible risks while you focus on increasing your income. It covers your rental property against damage, liabilities, and lost rental income. There are many benefits to being a landlord; however, it is also a big responsibility that must be treated like a business.
No matter what type of insurance you have, Sharp covers it all. From auto and home insurance to business and recreational insurance, we ensure the highest level of protection. Our primary job is to meet your needs by offering the most adequate plans through a wide network of experienced insurance providers.
What Is Manitoba Landlord Insurance and Why Landlords Need It
Landlord insurance, also known as rental property insurance, protects landlords and their properties. It is designed to protect your rented dwelling from unexpected events, such as water damage, liability arising from ownership of the property, or lost rental income. Landlord insurance in Manitoba covers the building and the landlord’s personal belongings used for the rental, unlike standard Manitoba home insurance, which is designed for owner-occupied homes.
Landlord insurance is essential for property owners in Manitoba. It protects you from financial losses, like an unexpected fire or a lawsuit that could leave you paying out-of-pocket, while also securing your rental property investment and protecting you from the legal risks that come with managing a rental property.
Manitoba Landlord Insurance Policy vs. Home Insurance Policy
A landlord insurance policy covers the property you rent out and includes coverage for the building structure, lost rental income if your property becomes uninhabitable, furnishings included in the rental, and liability if a tenant or visitor is injured or causes damage.
On the other hand, a home insurance policy protects the home you live in. It covers your personal property, attached structures like a garage, detached structures like sheds and fences, and personal belongings, such as furniture, clothes, electronics, or jewelry, against an insured loss like fire, theft, or vandalism. It also covers additional living expenses if you are temporarily displaced due to a covered loss, as well as liability for guests’ injuries.
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Manitoba Landlord Insurance Policy vs. Tenant Insurance Policy
Landlord insurance protects the property owner, while tenant insurance protects the renter. Many landlords ask tenants to carry their own tenant insurance policy to show they’re responsible and prepared for unexpected situations.
Renter’s insurance protects the tenant’s possessions, such as clothes, furniture, or appliances, and includes additional living expenses (ALE) coverage that pays for temporary accommodation if the rental becomes unlivable.
Unlike landlord insurance coverage, which protects the rental dwelling, tenant insurance does not cover the building structure or damage caused intentionally by the tenant.
Read more:
- How to Keep Your Home Insurance Current on Vacation
- Water Coverage: What Homeowners Need to Know
- 4 Tips to Protect Your Home from Floods During Spring Melt
Why Choose Sharp Insurance for Landlord Insurance in Manitoba
We Match You With the Best Insurer
At Sharp, your needs are our top priority. Sharp is an independent insurance company that partners with Canada’s top-notch insurance providers to bring you the right coverage. We do all the work on your behalf. We handle everything from comparing policies to finding the most affordable rates that match your lifestyle and budget.
Wide Coverage Options
Sharp helps protect all your essentials with broad insurance coverage. Whether you need home, auto, condo, or rental properties insurance, Sharp offers a complete service. If you’re looking for basic coverage for legal liability, the building structure, loss of rental income, and personal items used to maintain the rental, or more specialized policies, like add-ons to your coverage, we provide it all.
High-Tech Tools (MySharp App)
Sharp is a leading brokerage that goes beyond the ordinary by continually investing in innovative tools and technology. Whether you need to find your pink card, update your policy, or review payment schedules and policy details, our award-winning app, MySharp App, makes it quick and easy.
You can always contact Sharp Insurance to get a free quote customized to your rental property needs.
Who Needs Landlord Insurance?
- Homeowners renting out a suite or basement: If you rent out a part of your home, such as a suite or basement. You need landlord insurance to cover the structure and possessions you provide.
- Condo owners renting units: Landlord insurance helps protect the structure of the rental unit, including walls, flooring, and fixtures.
- Investment property owners: With landlord insurance, your rental condo is covered if something gets damaged or if someone gets hurt and tries to hold you responsible.
- Investment property owners: Managing more than one rental unit comes with its own set of risks. Whether it is a house, duplex, or multi-unit building, you know each one comes with its own benefits and its own set of risks.
- Airbnb hosts or short-term rentals: Short-term rentals, like vacation homes or Airbnb properties, tend to suffer more damage because many different guests come and go in a short period of time.
- Many landlords: Landlord insurance helps protect each rental property you own.
What Does Landlord Insurance Cover in Manitoba?
Property Damage Coverage
Landlord insurance ensures coverage for the building structure of your rental property, including the roof, walls, and floors, along with any additional buildings such as garages, sheds, or fences. It also protects the landlord’s contents, such as appliances, furniture, and other items provided for tenant use. This coverage helps repair or rebuild the property when damage results from named perils such as fire, theft, vandalism, windstorms, hail, burst pipes, or certain types of water damage.
Liability Coverage
Landlord insurance provides liability protection if you are found legally liable for bodily injury or property damage. It can cover medical expenses if someone is injured on your rental property, as well as damage to a tenant’s or visitor’s property. This includes premises liability, such as when a tenant or visitor slips on an icy sidewalk or is injured due to faulty wiring. It also covers legal expenses, such as defence or court costs if you’re sued.
Loss of Rental Income Coverage
Landlord insurance reimburses lost rental income if your property remains vacant due to repairs caused by a covered loss, such as a fire, wind damage, or certain types of water damage. It helps you keep up with your mortgage and expenses. This coverage does not apply to tenant non-payment or normal vacancies.
Personal Property Coverage
Landlord insurance protects the landlord’s contents inside the rental property. It covers personal belongings such as appliances and furniture when the rental unit is furnished. This coverage protects these items against specific perils and certain types of water damage.
Additional Coverages Manitoba Landlords Should Consider
You can add optional coverage to your standard landlord insurance policy that gives you extra protection if you are exposed to one of the following risks, as these add-ons provide coverage for situations not included in your basic plan.
Sewer Backup Coverage
If you live in a high-risk area exposed to heavy rainfall or ageing sewer systems, sewer backup coverage may be a good option. It covers cleanup, decontamination, and water/sewage removal costs, as well as repairs to damaged walls and the building structure. It can also replace the landlord’s personal contents, such as appliances and furniture, and cover temporary housing expenses if relocation is required.
Overland Water Damage Coverage
Overland water damage caused by excessive rainfall or melting snow can be costly. This add-on coverage protects your property from unexpected events, especially if your property sits in a high-risk area. It covers lost rental income and the landlord’s personal belongings.
Earthquake Coverage
Standard landlord insurance doesn’t cover significant damage that occurs due to earthquakes. If you live in a high-risk zone, earthquake coverage protects your building structure and covers related costs, such as temporary housing.
Equipment Breakdown Coverage
It is highly recommended for Manitoba landlords to add equipment breakdown (EB) coverage to their basic landlord insurance policy. While standard property insurance covers damage caused by events like fire or storms, equipment breakdown coverage applies to unexpected mechanical or electrical failures within the dwelling. It protects HVAC systems, furnaces, boilers, refrigerators, and more. It also covers the costs of equipment repair or replacement.
How Much Does Landlord Insurance Cost in Manitoba?
Since costs vary widely, the best way to know your exact rate is to request a free quote from your insurance provider. Landlord insurance costs range from $40 to $80 or more per month. Some insurance providers quote an average annual cost of around $1,325.
Several factors determine the price, such as your location, coverage limits, property type, and deductibles. However, costs can go up for higher-value properties or more coverage, and details like your building type, rental history, and additional coverage options all play a part.
It’s hard to give an exact price for landlord insurance in Manitoba, so you should contact your insurance provider to get a policy that works best for your needs.
What Affects the Cost of Landlord Insurance in Manitoba?
- Property type: Each property type requires its own premium; for example, the premium for a condo differs from that of a duplex, single-family house, or multiple-unit property.
- Location: If your property is located in a high-risk area, such as a floodplain, the premium is likely to increase.
- Building’s Age and Condition: Newer buildings have less impact on premiums than older buildings, which carry higher risks due to outdated systems and potential damage
- Type of Tenants: Properties with long-term tenants are often rated differently from those with short-term tenants, such as Airbnb rentals. More people in and out means more chances for damage.
- Coverage type and limits: Choosing the right coverage starts with knowing your rental property’s value. More coverage equals more protection, though it might increase your premium.
- Claims history: A claims-free history can lead to savings through discounts while still maintaining strong coverage.
- Deductibles: Higher deductibles can help you cut down on monthly or annual insurance premiums, but they also mean you pay money out-of-pocket for each claim.
How to Get Cheaper Landlord Insurance in Manitoba
Compare Landlord Insurance Quotes
Save on your landlord insurance premiums by comparing various quotes from multiple insurance providers. That way, you get the right protection at the best price to fit your budget and maximize your benefits.
Bundle Policies (Auto, Home Insurance, and Rental Property Insurance Policy)
You may qualify for discounts if you bundle your policies with the same insurance provider. If you insure your rental property with the same provider that insures your auto and home, the insurer may view this as a sign of loyalty.
Reduce Claims and Improve Maintenance
Your claims history has a huge impact on your policy premium. Make sure to maintain a clean claims history by reducing the number of claims you file. If it’s a minor repair or small leak that you can handle, consider fixing it yourself instead of filing a claim. You can also reduce claims by regularly inspecting the property for potential issues and keeping up with seasonal maintenance, such as trimming trees before winter.
Upgrade Security and Property Systems
Make sure you keep your security and property systems up to date. Update the alarm systems to prevent break-ins, check your locks, and place security cameras at the property entrance. These measures are highly recommended to keep your claims to a minimum.
Review Your Current Insurance Policy Annually
Check whether changes have occurred in your property, such as value, property’s use, or whether your rentals are long-term or short-term, to update your insurance policy accordingly. Set up an annual check-in with your insurance provider to make sure your coverage reflects your current needs and any regulations in Manitoba.
How to Choose the Right Landlord Insurance Policy in Manitoba
Assess Risks Specific to Your Rental Home
Evaluate your rental property’s specific risks, as two rentals may not be exposed to the same type of risks. Living in Manitoba exposes landlords to risks such as severe weather, frozen pipes, sewer backup, and ageing infrastructure, all of which landlord insurance is designed to help protect against. The rental property’s location, age, and tenant type (short-term or long-term) all play important roles in determining the right landlord insurance policy. The type of lease you have can affect the coverage you should purchase for your rental property.
Understand Deductibles, Premiums, and Coverage Limits
Deductibles significantly affect your premium. The higher the deductible you choose, the lower your premium typically becomes. You should be cautious when filing claims, as you are responsible for paying the deductible out of pocket.
It’s important to match coverage limits to your rental property’s value. If you choose higher coverage limits to ensure ultimate protection, you should expect the premium to increase.
You should also avoid compromising coverage solely to secure a lower premium. In fact, balancing cost and protection can be challenging, but assessing your needs and risks helps you choose the right coverage.
Work with Sharp Insurance
Identifying risks across Manitoba can be overwhelming, which is where our insurance experts at Sharp step in to guide you throughout the whole process. We help you choose the right coverage and clarify the optional add-ons you might need. We guarantee convenient access to all your claims, policy updates, and reviews for an all-inclusive service.
Read more:
- 7 Uncontrollable Factors Affecting Home Insurance Rates
- 8 Scenarios Not Covered by Home Insurance
- 10 Foolproof Tips To Save On Home Insurance
Manitoba Landlord Insurance – FAQs
Have questions about your Landlord insurance in Manitoba? Sharp offers innovative solutions for Landlords’ insurance in Manitoba and we’re here to answer all your questions. See our FAQs answered for your convenience below.
Yes, landlord insurance covers unintentional tenant damage like a kitchen fire from cooking or water damage caused by burst pipes. However, landlord insurance doesn’t cover intentional damage, such as vandalism or malicious damage like breaking windows or spray-painted walls.
Landlord insurance doesn’t cover normal wear and tear, like general aging of the property or worn-out carpets. It also doesn’t cover the tenant’s personal belongings or certain natural disasters like floods. Additionally, landlord insurance does not cover damage caused by tenant negligence, such as destroying appliances or damaging floors. Damage caused by illegal activities on the premises, such as drug manufacturing, is typically not covered.
No, landlord insurance isn’t mandatory in Manitoba. However, it’s highly recommended, and many mortgage lenders require it to help protect against financial losses like liability, property damage, or lost rental income.
Yes, you can add Airbnb or short-term rental coverage to landlord insurance, as standard landlord policies don’t include business use. Consider adding an Airbnb coverage to protect your rental property from guest-related damage, liability, and lost rental income.
Landlord insurance premiums depend on your property details, such as value, location, size, type, and age. Your coverage and policy choices are taken into consideration, like the coverage amount, liability limits, and deductibles, in addition to personal claim history and external factors like inflation.
A vacant rental means no rent coming in, while ongoing expenses continue, which can quickly create financial strain. The longer the property is vacant, the greater the risk of damage, squatters, insurance complications, a drop in value, and a harder time attracting new tenants. Maintaining the property, carrying appropriate insurance, and marketing the unit promptly can help reduce these risks.
Yes, landlord insurance is recommended for a basement or secondary suite. Home insurance won’t cover rental risks, and not reporting it could void your policy. Landlord insurance protects your structure, your liability, and lost rent. Tenant insurance only covers their personal items.
Rental dwelling insurance is also known as landlord insurance. It is designed to protect property owners who rent out their homes, which standard home insurance doesn’t protect, such as damage to the building, landlord liability, and lost rental income if the property becomes uninhabitable, helping protect your investment as a rental.
No, you don’t need homeowners’ insurance for your rental. You need landlord insurance, which covers tenant damage, injuries on the property, and lost rental income. A regular home policy won’t protect you from these rental-related risks.