Landlord Insurance in Spruce Grove
Financial Protection for Spruce Grove Homeowners
West of Edmonton, in Alberta, lies the charming city of Spruce Grove, renowned for its family-friendly atmosphere and vibrant community. The small town is full of opportunities to seize. And if you own property in Spruce Grove that you rent out, you are seizing the opportunity to generate steady passive income. Managing a rental property isn’t easy, but we can help.
While you manage the various aspects of being a landlord, we can help mitigate financial risks by providing landlord insurance, also known as rental property insurance.
Sharp Insurance can help you find the perfect landlord insurance coverage for your rental unit. With our affordable, comprehensive solutions, you don’t need to worry about paying a fortune to cover the risks of renting your property to strangers
What Is Landlord Insurance?
Landlord insurance, or rental property insurance, is a type of property insurance that protects owners who rent their property from damage caused by tenants, liability claims, and lost rental income.
Anybody renting their property in Alberta benefits from having Alberta landlord insurance, whether they own a room, a basement suite, a condo, or a house. Property managers of multiunit apartments also need landlord insurance to protect their investments. While there is no mandatory coverage for landlord insurance, it is recommended, especially if you’re paying a mortgage, as the bank or lender may require it.
What is the Difference between Home Insurance and Landlord Insurance in Spruce Grove?
Home insurance and landlord insurance in Spruce Grove are both types of property insurance for an owned property unit that form protection for your financial future. But they differ when it comes to usage. For example, if you own two properties, one that you live in and one that you rent out, you need separate policies for each property.
The property you live in is to be protected by standard homeowners’ insurance, which includes dwelling coverage, contents coverage, and liability insurance coverage. In other words, home insurance covers the building, its contents, and any accidents that may happen.
As for the property you rent out in Spruce Grove, it will not be protected by home insurance. Its protection relies on having landlord insurance, which includes dwelling coverage, optional landlord contents coverage, lost rental income coverage, and liability insurance coverage. Both types of insurance are distinctive in what they protect and how they protect it.
Many Spruce Grove homeowners entrust our insurance experts to protect their homes. Speak to one of our insurance brokers and get a quote now!
Why Get Landlord Insurance in Spruce Grove from Sharp?
Protection Tailored to Your Rental Property
Rental houses are exposed to risks that standard home insurance policies just don’t cover. Sharp came up with specialized coverage specifically designed for landlords that protects your building, the income you earn from renting, and you as a property owner.
Expert Brokers in Your Corner
Sharp isn’t tied to one particular insurance provider. Instead, their team of insurance brokers shops around to multiple providers to find the exact right coverage and a fair price, so you get the best bang for your buck on your rental property.
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.
Is Landlord Insurance Mandatory in Spruce Grove?
Landlord insurance isn’t mandatory by law in Spruce Grove. 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 Does Landlord Insurance in Spruce Grove Cover?
Dwelling Coverage
Landlord insurance in Spruce Grove includes coverage for the structure of your owned property, attached structures, and other structures. The protection covers the repair and replacement costs for property damage from risks, including fire, theft, vandalism, and some weather events.
Contents Coverage
This is an optional coverage for landlords in Spruce Grove. It covers their belongings inside the property, including HVAC, lighting fixtures, and any stored items. It also covers the furniture if the property is leased furnished. So, with this coverage, you don’t have to worry about your possessions that you keep inside your property.
It’s noteworthy that this coverage doesn’t include the tenant’s belongings. They need to have their own coverage, known as tenant insurance or renters’ insurance, to cover their personal property. That means that if your property is severely damaged, you get reimbursed for your damaged or lost items, not the tenant’s.
Third Party Liability Insurance
Third-party liability coverage is for unfortunate accidents that result in the injury of a third party or damage to their property. If the accident is considered a result of your negligence or unsafe conditions inside your property, you may be held accountable.
If the person affected decides to sue you with legal claims, you will be covered by third-party liability insurance, which covers the legal costs and medical expenses.
Lost Rental Income Coverage
If your home in Spruce Grove becomes uninhabitable because of a covered event, you will have to leave it unoccupied for some time until the damage is repaired. Luckily, landlord standard coverage pays for a portion of the lost income during this period. This way, you can keep a steady income even through the hardest times.
What Add-ons Can You Include in Your Landlord Insurance Policy in Spruce Grove?
Many insurance companies offer insurance add-ons you can include in your landlord insurance policy. Optional coverage allows you to have comprehensive coverage that includes vital protection for the risks your property may face.
- Extended content coverage: Offers higher coverage limits for your belongings inside the rental property, ensuring you have proper coverage. Note that it only includes your belongings, not the tenant’s.
- Non-payment of rent/Legal expense insurance: This compensates you during the process of evicting your tenant when they refuse or are unable to pay the rent.
- Umbrella or excess liability: Umbrella insurance covers the gap if the covered events require more than your coverage limits by paying the difference.
- Additional coverage from water damage: You can also include coverage for different types of water damage, including floods, overland water, and sewer backup.
- Bylaw coverage: Pays for the extra costs needed to repair or rebuild your property to meet the current municipal bylaws after a loss from an insured event.
We understand your insurance needs. Get the best coverage plan with Sharp Insurance. Call us now!
What Rental Property Insurance Doesn’t Cover
- Rental of commercial buildings: Landlord insurance covers residential buildings only. It doesn’t typically cover commercial buildings, which are covered by commercial property insurance, type of business insurance that covers property damage to commercial buildings and spaces.
- Normal wear and tear: Damage from lack of maintenance is not covered by insurance, as the landlord should upkeep their property.
- Infestations: Things that happen over time should be reported immediately before they start causing damage. That’s why pest and mould infestations aren’t covered by insurance.
- Criminal activity: Any criminal activity performed by the landlord or the tenant is excluded from insurance.
- Appliance Breakdowns: Landlord insurance doesn’t cover the breakdown of appliances unless it is caused by a covered event. Regular breakdowns from daily use aren’t covered.
Need advice from someone with the right insurance expertise? Our insurance brokers would be happy to help. Call us now or get a quote!
How Much Does Landlord Insurance Cost in Spruce Grove?
On average, landlord insurance can cost anywhere between $480 and $1200 per year, though the cost can increase significantly depending on many factors, including the size of the rental property. As a general rule, landlord insurance premium costs 15%-20% more than home insurance premiums because with landlord insurance, you face more risks by renting to tenants.
What Factors Affect the Premium Cost of Landlord Insurance in Spruce Grove
Your insurance profile
The insurance providers look into your insurance profile as a factor to determine your landlord insurance costs, including your claims history and payment history. Having a claims-free history means you are a lower-risk policyholder and can get lower premiums. On the other hand, if you have had many claims before, you will get higher premiums.
Property location
The location of your property can say a lot about the risks it faces. For example, a property located in an area with high crime rates is at risk of theft, property damage, and vandalism.
Moreover, if the area is prone to more natural disasters, like wildfires, for example, it will also be considered a high-risk property. The more risk the property has, the higher the premiums get.
Number of rented units
Renting one unit is not the same as renting multiple units. The more properties you rent, the higher the premiums get because of many reasons, like the increasing risk.
Property value
The rebuild value of the property is an important pricing factor. The insurance company needs to take into consideration the value of rebuilding the property if it is severely damaged because of a covered event. A property with high-value items, built with expensive materials, gets a higher premium than a regular property.
The Coverage options and deductible amount
Having additional coverage and higher coverage limits means more protection, but the price might be high. On the other hand, when you increase the deductible amount, you get lower premiums. It’s important to review your coverage options and be mindful of the deductible amount that you can afford.
Property age
Old properties often have outdated systems, like the heating, electricity, and plumbing systems, which pose risks and can be hazardous. Additionally, an old building is more susceptible to damage than a new one, which is why it costs more to insure it.
How to Save Money When Buying Landlord Insurance in Spruce Grove
There are ways to reduce premiums and get affordable landlord insurance rates.
- Install security systems: Security systems keep your property safe and make it seem more secure to insurance companies. That’s why they may give you a lower rate if you have an upgraded security system.
- Bundle insurance policies: Bundling your landlord insurance with another type of property insurance, like your Spruce Grove home insurance policy, or other types of insurance, like auto insurance, can get you a discount from the insurance provider.
- Choose a higher deductible: A higher deductible gets you a lower insurance premium.
- Compare quotes: Our insurance brokers can help get you the best quotes and discuss your insurance options to help you compare and get the best deal for you.
- Review your insurance coverage: Our insurance brokers recommend reviewing your insurance coverage every 12 months to make sure it still covers all your needs without unnecessary coverage or coverage gaps.
Landlord Insurance Spruce Grove FAQs
Have questions about your Landlord insurance in Spruce Grove? Sharp offers innovative solutions for Landlords’ insurance in Spruce Grove and we’re here to answer all your questions. See our FAQs answered for your convenience below.
Yes. Homeowners insurance is designed for homes occupied by owners. Once you rent out your property, the risks change, and most home policies exclude or limit coverage for rental properties. A landlord insurance policy ensures your building, liability, and rental income are properly protected.
Landlord insurance isn’t mandatory in Alberta. However, lenders often require it if you have a mortgage, and most landlords carry it to protect their investment and reduce financial risk.
Landlord insurance is designed to protect the property of the landlord, while tenant insurance protects the renter’s belongings. For example, tenant insurance doesn’t include protection for the building structure, and landlord insurance doesn’t include coverage for the tenant’s belongings. Both include liability coverage for their respective policyholders.
Landlord insurance doesn’t cover short-term rentals, unless the policy specifically includes short-term rental coverage. Most standard landlord insurance policies cover long-term rentals, so you may need to add a rider or purchase a specialized short-term rental policy.
Many insurance companies allow landlords to bundle multiple properties under a single policy, which often results in better rates and simplified administration. Your insurance brokers can advise on whether this option is available for your situation.
While Alberta law does not require tenants to carry renters’ insurance, landlords in Spruce Grove commonly make it a lease requirement. Tenant insurance helps protect their’ belongings and reduces liability risks for both parties.
Insurance coverage can change when a property is vacant for an extended period. Many insurance companies restrict or exclude certain protections unless you notify them or add a vacancy endorsement. It’s important to report vacancy periods to avoid gaps in coverage.