Landlord Insurance Toronto
Protect Your Rental Property in Toronto
Turning your vacant property in Toronto into an investment property is a rewarding project, but it requires more than finding suitable tenants and collecting rent. It requires protection from unexpected events like fire, theft, water damage, and liability claims. Without this essential protection, you can lose all the profit you’ve been generating to repair the damages of a single incident. So, why wait till something goes wrong when you can start protecting your rental property today with Sharp Insurance?
Get a free landlord insurance quote from a top-rated insurance provider in Toronto and find the right coverage to keep your property, tenants, and income protected.
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What Is Landlord Insurance and Why Do You Need It?
Landlord insurance is a type of insurance for property owners who rent their homes, condos, or other structures to tenants. Unlike standard home insurance, this coverage protects against risks that are only associated with rental properties, including tenant damage, loss of rental income, and liability claims.
All landlords need to carry this type of insurance coverage in Toronto to protect their rental property and comply with certain mortgage requirements. Landlords who decide to skip this coverage may struggle to find responsible tenants and will face costly repair bills, financial losses, and legal expenses if an unexpected event leads to liability claims.
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What Does Landlord Insurance Cover in Toronto?
Landlord insurance, also known as rental property insurance, is designed to protect property owners with rented dwellings in Toronto. This insurance usually includes:
Property Damage Coverage
This type of property coverage protects the structure of your building and attached structures against risks like fire, theft, vandalism, and certain natural disasters. It also covers permanent fixtures like plumbing, electrical systems, and built-in appliances, but it doesn’t cover damage to the tenant’s personal belongings or appliances.
Personal Liability Coverage
Landlord liability insurance protects the property owner against liability claims of third-party bodily injury or property damage caused by or on the rental property. For example, if a tenant or a guest slips and falls on wet stairs, or if a contractor causes damage to your neighbour’s house while working on yours, this coverage will be here for you. It covers medical bills, repair costs, and legal fees arising from these claims.
Lost Rental Income Coverage
If your rental house becomes uninhabitable due to a covered loss, some policies provide compensation for the rental income you would have received during the repair period. For example, if a fire forces your tenants to move out, this coverage helps you remain financially stable by providing fair rental compensation for the lost income.
Personal Property Coverage
If the landlord leaves personal belongings in the rental unit, such as furniture, appliances, or maintenance equipment, this contents insurance protects these items against risks like fire, theft, and vandalism. Although it doesn’t provide coverage for the tenant’s personal belongings, it ensures the landlord’s own belongings inside the rental unit are protected.
Whether you own a single-family home or a multi-unit apartment building, contact Sharp today to protect your rental property against financial risks, unexpected damages, and liability claims.
Common Optional Add-Ons for Landlord Insurance in Toronto
Although the standard landlord insurance policy provides strong protection, many landlords decide to purchase separate add-ons to provide additional coverage for risks not included in the basic plan. Some of the common add-ons in Toronto are:
Sewer Backup Coverage
If sewage or water backs up into your rental house, this additional coverage will help address the damage and pay for necessary cleanup, repairs, and replacements.
Overland Water Coverage
Toronto is known for its heavy rainfall and rapid snowmelt, which may cause water to enter buildings, especially in low-lying areas or homes near rivers and lakes. This policy protects against overland water damage by covering the cost of repairs and restorations needed to make the property safe again.
Earthquake Coverage
Although earthquakes aren’t common in Toronto, earthquake insurance coverage is available for landlords who want extra protection against unpredictable natural disasters. This optional insurance coverage helps with the costs of repairing the structural damage and foundational issues caused by an earthquake.
Why Sharp Insurance Is the Top Choice for Toronto’s Landlords
Proudly Independent Since 2009
Sharp Insurance has been an independent insurance brokerage since 2009, giving Canadian landlords and property owners a wide range of insurance options to protect their properties. Our independence means that we work for you, not the insurance companies, ensuring that you get unbiased service and coverage options that fit your needs.
Comprehensive Coverage Options
The coverage offered through us goes beyond the basics, giving landlords access to a wide range of insurance options from top-rated insurance providers in Toronto. We search the market, compare landlord insurance quotes on your behalf to find the coverage that addresses all your property’s risks at a competitive price.
24/7 Access to Your Policies
You can manage all your insurance policies in one place, our award-winning mobile app, MySharp. Our application is a convenient way to request policy updates, track payments, and view your own insurance coverage anytime, anywhere. With 24/7 access, landlords don’t need to call or email for basic requests. However, if they need, we’re always here.
Exceptional Customer Service
Our top priority is to deliver outstanding service to every customer we meet. Our dedicated team works extended hours, six days a week, to assist you whenever you need support. You can contact us by phone, text, app, portal, email, or even in person. We’re always here to answer your questions and provide assistance whenever you need it.
Common Exclusions in Landlord Insurance Policies
Landlord insurance policies don’t cover the following risks:
- Tenant’s Belongings: Landlord insurance only covers the landlord’s belongings. Meanwhile, the tenant’s possessions are covered under renters’ insurance.
- Damage to the Rental Unit: Accidental or intentional damage inside the rental unit itself might not be covered because it usually falls under the tenant’s insurance policy.
- Wear and Tear: Gradual issues like aging roofs, deteriorating plumbing, or worn-out flooring are considered normal maintenance and are excluded from coverage.
- Illegal Activities: Any damage resulting from illegal activities isn’t covered, regardless of whether the landlord was aware of it.
- Tenant’s Liability: If a tenant is found legally liable for accidentally injuring a third party on the property or causing damage to someone else’s house, the claim won’t be covered.
- Commercial Properties: Landlord insurance doesn’t cover commercial properties because they require their own specialized policies to address business-related risks.
- Water Damage: Standard landlord insurance policies usually don’t include coverage for water damage unless you have separate add-ons.
How Much Does Landlord Insurance Cost in Toronto?
The cost of landlord insurance in Toronto ranges anywhere between $800 and $3000 per year, depending on several factors such as:
- Property Type
- Location
- The Building’s Age and Condition
- Claims History
- The Number of Rental Units
- Coverage Type and Limits
For example, a landlord who owns a rental condo in a low-risk neighbourhood will pay less than someone insuring a multi-unit apartment building in a high-traffic area. Moreover, old buildings are usually more vulnerable to significant damage from fire, water leaks, or wind damage, which is why they get higher insurance premiums.
If you’re looking for a comprehensive yet affordable rental property policy to protect your investment, you’re in the right place. Get an online quote from Sharp Insurance today to protect your rental property against unexpected events.
Why Do Landlord Insurance Rates Vary in Toronto?
Landlord insurance premiums in Toronto vary because each property is unique. Insurers assess a range of factors when setting insurance premiums, and understanding these factors can help you know why costs vary.
Property Type
A single rental condo faces different, unique risks compared to a multi-unit apartment building, even if they’re in the same neighbourhood. Also, older properties may be more vulnerable to risks like fire, theft, and water damage, which affects insurance premiums.
Location
Properties in neighbourhoods with higher crime rates or a history of severe weather events often get higher insurance rates. Meanwhile, properties in safe neighbourhoods or those that are close to fire hydrants get lower rates.
Claims History
If your property has experienced an insured loss or if you have a history of insurance claims, many insurers may view you as a higher-risk landlord. This leads to higher premiums since there’s a greater chance of future claims.
Coverage Options and Limits
Adding optional coverages to your policy and choosing higher limits have many benefits, but they also increase your insurance premiums. That’s why at Sharp Insurance, we make sure that you’re fully covered without overpaying.
Tenant-Related Factors
Sometimes, insurers may also assess the type of tenants you’re renting to when calculating your insurance premiums. Students and short-term tenants may be seen as higher risk compared to long-term tenants with stable income.
Smart Tips to Save on Your Landlord Insurance
- Bundle Your Policies: Bundling your insurance policies is one of the best ways to save on your insurance. You can combine homeowners’ insurance or car insurance with rental property insurance to save money and make managing policies easier.
- Invest in Security Systems: Upgrade your rental home with security systems, such as monitored alarms, motion sensors, and surveillance cameras. These systems reduce the risk of theft and vandalism, which can lower your insurance rates.
- Install Safety Features: Adding safety features like smoke detectors, fire extinguishers, carbon monoxide alarms, and sprinkler systems can lower your insurance premiums.
- Maintain a Clean Claims History: Your claims history is one of the main factors affecting your insurance premiums. In order to maintain a clean claims history, only file claims when necessary, ensure your rental property is safe, and address small problems before they turn into big issues. Insurers usually reward landlords who have a clean claims history with lower insurance rates.
- Partner with Sharp: If you partner with Sharp Insurance, we’ll compare quotes on your behalf and work hard to get you the best coverage at the most competitive price. Choosing Sharp means that you’ll be getting ongoing support, expert advice, and a trusted partner to protect your property.
FAQs: Toronto Landlord Insurance
The best insurance for landlords in Toronto is one that covers property damage, liability, and loss of rental income while offering optional add-ons like sewer backup or flood coverage. However, there’s no right policy for everyone. Working with an experienced insurance brokerage like Sharp helps you get the best coverage for your property at a fair price.
Landlord insurance is a type of coverage designed specifically for property owners who rent their homes, condos, or apartments to tenants. It covers the structure of the building, loss of rental income, and the landlord’s liability if a tenant or a visitor is accidentally injured because of them. Meanwhile, a home insurance policy is designed for owner-occupied residences and does not protect against rental-related risks.
No, landlord insurance and Airbnb insurance are two different policies. Landlord insurance is designed for long-term rental arrangements; meanwhile, Airbnb insurance is for short-term rental stays.
No, landlord insurance isn’t mandatory in Toronto, but it’s highly important because it protects rental property owners from financial risks such as property damage, liability claims, and loss of rental income. Also, many lenders require landlords to carry this coverage as part of their mortgage agreement.
On average, the cost of landlord insurance in Toronto ranges between $800 and $3,000 per year. The price depends on several factors, including the type of property, location, age and condition of the building, number of rental units, and past claims history.