Landlord Insurance in Ontario
Protect Your Rental Income with our Landlord Insurance in Ontario
As a landlord in Ontario, you need insurance to protect your rental property, whether it’s a basement suite or a 2-story house. A specialized landlord insurance policy will protect your property from damage and liabilities, covering the building structure and lost income.
At Sharp Insurance, we provide landlord insurance to help you secure your investment property and a steady rental income, protecting you from unexpected events. We help property owners find the right coverage at competitive rates.
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Why Choose Sharp Insurance
We Advocate For You
Our expert Canadian brokers have your back, always. We advocate on your behalf when you’re making a claim to ensure you get the best outcome. If you’re searching for better rates, we will do our very best to get you a deal that suits your insurance needs and fits within your budget.
We Provide Exceptional Service
We strive to give you the best customer service experience, partnering with the top insurance providers in Canada to offer you the best coverage options. Our team regularly monitors insurance rates in the market to make sure you get a fair deal. We’re always working hard for you.
Our Services Are Available 24/7
You can connect with our team any time, any day. We are available to help you on the phone, by email, social media, or in person. Whenever you need us, you find us. Not to mention that we have an online portal that you can use to get access to your insurance information via the web or a mobile app. Using the portal, you can make a request or submit a claim anywhere with no hold time.
What Is Landlord Insurance?
Landlord insurance is for property owners who lease their properties, whether it’s a house, duplex, townhouse, or an apartment you don’t live in. Renting one room in your house also qualifies for landlord insurance coverage. Most landlord insurance policies include coverage for property damage, liability, and lost rental income.
Home insurance doesn’t cover a property that is rented, so you have two options: Get a rented dwelling rider to your policy or get a separate rental property insurance policy. Generally, a rider is good for short-term rentals, but a separate policy is more comprehensive for long-term rentals.
What Are the Types of Landlord Insurance?
- Rental property: This is the standard type of landlord insurance. It covers the rental of a townhome, single-detached, or semi-detached home.
- Rental Condo-unit insurance is for condo and strata rentals, covering what your condo association doesn’t cover.
- Residential buildings: If you are a property owner of a building that has seven or more units, you need this type of rental insurance.
- Cottage: A specific coverage for cottage owners who rent their cottage or seasonal home.
- Commercial property insurance: For commercial landlords who rent their property for commercial purposes, like an office or store.
- Student housing: For property owners who rent rooms to students.
- Short-term Rental: Also known as Airbnb Insurance, this caters to those who rent their properties for days or weeks.
What Does Landlord Insurance Cover in Ontario?
Property Coverage
Also known as dwelling coverage, this covers the physical structure that you own, including attached structures, like the garage, shed, deck, and fence. It protects the property building from damage, like fire, wind, hail, lightning, and other named perils.
Contents Insurance
The personal belongings of the landlord are also covered under landlord insurance, like their equipment and things they store inside the rental property. Insurance offers protection from damage. Note that the tenants’ belongings aren’t covered, only the landlord’s. Tenants need their own insurance policies for protection. You can extend coverage with a higher contents limit.
Liability Coverage
The property owner gets legal liability protection if they are accused of causing a personal injury to a tenant or guest. This happens if the injury is a result of unsafe conditions inside the house. It is usually a product of negligence on the landlord’s part.
Loss of Rental Income
This coverage pays for lost rental income if the property is deemed uninhabitable because of a covered loss, like water damage. It compensates the landlord for the insured loss while the property is being repaired.
What Additional Coverage Can You Add to Landlord Insurance?
Burglary
Adding this coverage protects your property from break-ins. It covers any damage caused by the burglar or anyone entering the property illegally. This coverage applies if the property hasn’t been vacant or unoccupied for over 90 days.
Vandalism
Vandalism isn’t a covered peril under a typical landlord insurance policy. However, you can add it as extra coverage. It protects your property, contents, and other structures from vandalism caused by the occupant or a third party. Like burglary, coverage doesn’t apply if the property has been vacant for 90 days or more.
Under construction
This coverage protects your property when it’s under construction or is being renovated or built, providing liability coverage. Without this endorsement, your property may become underinsured if the renovations increase the property value.
Fair Rental value coverage
When your property is too damaged from a covered loss, you may not be able to rent it out. In that case, fair rental income coverage will give you compensation for the coverage you would have received if the property were rented.
Unpaid rent
Insurance for nonrepayment of rent helps maintain the cash flow that many landlords rely on. It provides income protection if an occupant doesn’t pay rent. Additionally, it covers the legal fees you pay for recovering rent or evicting the tenant.
Condo liability coverage
This exceeds what your condominium association offers as protection, ensuring extra protection in case of fire, flood, or another covered loss.
Additional content coverage
This coverage increases the limits of your contents insurance or allows you to add more items to coverage, like art pieces.
What Is Not Covered by Landlord Insurance?
- Maintenance issues: You’re responsible for upkeeping your property. Damage that results from failing to maintain the property or wear and tear isn’t covered by landlord insurance.
- Equipment breakdown: Breakdown of appliances, like the stove, furnace, dishwasher, and more, isn’t covered. You can add it as a rider, though.
- Occupant’s Belongings: The tenants’ belongings aren’t covered by your landlord’s insurance. They have to buy renters’ insurance to get coverage for their items.
- Infestations: Damage caused by rodents, insects, and other animals isn’t covered by landlord insurance, as it happens over time.
- Extreme weather events: Most natural disasters, like earthquakes, landslides, and flood damage, aren’t covered unless you get extra coverage.
Want to discuss your landlord insurance coverage options? Contact us now!
Is Landlord Insurance Mandatory in Ontario?
Landlord insurance isn’t mandatory by law in Ontario. However, if you’re still paying a mortgage for your property, your lender or bank may require you to carry property insurance coverage. In all cases, landlord insurance is a must-have investment that protects you and your property from damage and legal liability. If you’re found legally liable, it pays for your legal fees. Moreover, your landlord policy helps you mitigate financial losses by paying for lost income if needed.
What Are the Types of Landlord Insurance Coverages?
There are two common ways of coverage that depend on how you live as a landlord. If you live in the same unit you are renting in a separate apartment, you should ask your home insurance company to change the occupancy from 1 family to 2 families. In some cases, the insurance provider may require getting renters’ insurance to make the change. If you live in a different building from the tenant, a separate rental property insurance is a better option.
How Much Does Landlord Insurance Cost in Ontario?
In general, landlord insurance costs 20% more than homeowners’ insurance, because it is considered a higher-risk. The average cost of landlord insurance in Ontario is around $1500 per year for a rental house, and $350 per year for a small apartment. These numbers are just estimates. Contact us to compare landlord insurance quotes!
What Factors Impact Landlord Insurance Cost in Ontario
Property Characteristics
The rental property’s size, age, and value all affect the insurance rate. Larger properties with more square footage cost more to rebuild and have more potential to get damaged, so they cost more in insurance premiums. The number of units inside the houses or apartment buildings also affects the price, as more units cost more to insure.
The type of rental property also affects the insurance premium. A condo unit is different from a house, a townhouse, or a multi-unit apartment building. Multi-unit properties are harder to price because of the complexity of the pricing of common areas and shared structures, so a single-family home is cheaper.
Old properties are considered more risky to insure because of wear and tear and outdated systems, like HVAC, plumbing, and electrical systems. That’s why old houses and apartments may get higher premiums, compared to newer ones.
Location Risks
Location is a huge factor in determining the price of rental property insurance. An area that is prone to natural disasters, like hurricanes, earthquakes, floods, wildfires, or severe storms, may get higher rates because of the increased risk of property damage and claims. Also, areas with high crime rates get higher insurance prices because of the high chance of theft and vandalism.
Security Systems
Having security systems in your property shows insurance providers that you’re serious about securing it. It also decreases the chance of claims. Systems like a fire alarm, sprinkler system, security system, and upgraded wiring and plumbing can make your property safer and decrease insurance premiums. You could also install deadbolts and window locks to prevent break-ins.
Landlord’s Insurance Profile
Having previous claims in your insurance record could signal you as a high-risk policyholder to insurers, increasing your premium. On the other hand, a clean record may qualify you for a slightly lower rate. Moreover, you may allow the insurance provider to check your credit score, as a high credit score may qualify you for a lower rate, as it shows you’re financially responsible.
How to Find Cheap Landlord Insurance in Ontario
Here’s how to reduce your premium and get a better deal on your landlord insurance policy.
- Bundle policies: Buying multiple policies under the same insurance provider can get you a discount. You can also combine your main home insurance with the rental property insurance to get a lower price.
- Upgrade your systems: Upgrading your HVAC, electricity, and plumbing systems reduces risks, qualifying your rental property for a lower price.
- Upgrade your security: Consider installing security systems with CCTV, a burglar alarm, and advanced locks. Your insurance company may thank you with a reduced price.
- Maintain a no-claims record: A clean record is a sure way to get a lower price. Insurance companies view previous claims as a sign of future ones.
- Review coverage offered by insurer: It’s crucial to carefully review your coverage options to make sure that you have enough insurance without being overinsured, paying for coverage you don’t need.
- Work with an expert: An insurance broker, like one of the Sharp Insurance team, can help you compare quotes from multiple insurers and advise you to get the best coverage at the best price.
How to File a Landlord Insurance Claim
Here’s our guide to filing an insurance claim for your rental property.
- Step 1: Collect evidence. Take photos and videos of the damage. Write down what happened to remember what to report.
- Step 2: Collect your documents, including medical receipts, contractors’ estimates, and police reports, if any.
- Step 3: Contact your insurance agent or broker as soon as possible. Don’t wait long before telling the insurance company that you need to file a claim.
- Step 4: Fill out the claim form. If you’re stuck at any point, contact your insurance broker. They would be happy to help.
- Step 5: An insurance claim adjuster may visit to assess the damage. Provide all documents or information they need to make the process go smoother.
- Step 6: Your work here is almost done. Wait for the insurance company to send an offer.
- Final Step: Carefully read the settlement offer. Sign it if it’s reasonable or negotiate it.
How Can Landlords Protect Their Rental Property?
Your rental home is a big investment that can provide a steady income. Protecting it is the best way to get a higher rent price and a lower insurance price. Here are some of our tips to protect your rental property.
- Require your tenants to buy insurance. Not only does it protect their own belongings, but it also means that if there is damage or loss, you don’t have to carry the weight alone. You can add insurance as a requirement in the lease agreement.
- Vet tenants carefully before selecting them. It’s important to ask your tenants the right questions during the screening process. Make sure they have a job, a clean record, an insurance policy if needed, and a good reputation. You could ask them for a reference from their previous landlords.
- Maintain your rental property inside and out. Make sure it’s always in good shape and regularly inspect for potential red flags. Stay in touch with the tenant and ask them to report any problems as soon as they can.
- Inspect the rental property from outside every month and schedule a thorough inspection from the inside every 6 months.
- Make a property inspection list, citing the property’s condition and inventory as the tenant moves in. You and the tenant should sign the inspection list and keep a copy. That way, when the tenant moves out, you can track any changes they made to the place.
- Have a good insurance policy. Insurance can help you when things go wrong. You never know what accidents may happen in your rented property, and with insurance, you’re always prepared.
Get the Right Landlord Insurance Coverage in Canada
Getting the right Landlord insurance coverage in Canada is the perfect mix of protection and price.
Landlord Insurance Ontario FAQs
Have questions about your Landlord insurance in Ontario? Sharp offers innovative solutions for Landlords’ insurance in Ontario and we’re here to answer all your questions. See our FAQs answered for your convenience below.
Landlord insurance is for property owners who rent out their homes or buildings. It covers the building itself, liability, and sometimes loss of rental income if the property becomes uninhabitable due to a covered event.
Tenant insurance is for renters. It covers the tenant’s personal belongings and liability if they cause damage or injury, and sometimes additional living expenses if they have to move out temporarily after an insured loss.
The best insurance for landlords is a comprehensive landlord insurance policy that includes:
- Property coverage for the building, fixtures, and sometimes appliances.
- Liability coverage is required if a tenant or visitor gets injured on the property.
- Loss of rental income coverage if the property becomes uninhabitable due to an insured event.
- Optional add-ons such as flood insurance, vandalism coverage, or legal expense coverage, depending on the property’s risks.
The best policy will depend on the type of property, location, and whether you rent to long-term tenants, students, or short-term rentals, like Airbnb.
Yes, home insurance is different. A standard home insurance policy is for owner-occupied residences and won’t cover damages or liability claims if the property is rented out.
Landlord insurance specifically addresses the risks of renting, such as tenant-related liability and loss of rental income. If you start renting out your property but only have home insurance, you may not be fully covered, and in some cases, your insurer may deny claims.
Yes, in most cases, landlord insurance and rental property insurance mean the same thing. Both terms are used to describe insurance that protects a rental property owner against risks like property damage, liability claims, and lost rental income.