Best-Rate Landlord Insurance in Ontario

If you’re a landlord in Ontario, it’s critical to have the right insurance policy to protect your property investment. From basement suites and rental houses, to main-level town homes and apartment rentals – Insurance Hero insures not only your building, but any detached structures, landscaping and equipment on landlord property can be included in a comprehensive and best rate plan.

Here’s Why You Need Landlord Insurance

A standard homeowner’s insurance policy only covers properties meant to be the primary residence of the homeowner. It covers your property, its contents, and personal liability for you, your spouse, and your dependents. Your homeowner’s policy doesn’t cover properties that are rented out, regardless if it’s a room in your primary house or other investment properties. If you frequently rent out rooms or individual properties to tenants, you’ll need landlord insurance.

Whether you rent out properties on a long-term or short-term basis, landlord insurance is important. While landlord insurance policies differ depending on your needs and insurance company, it essentially protects property owners and their rental properties from financial loss. Landlord insurance covers the property, its contents, any attached structures to your rental properties, and loss of rental income. Your landlord insurance policy also covers liability in case you’re sued by one of your tenants, visitor injuries at your rental properties, and any personal items you keep at your rental properties.

Landlords sometimes require tenants to carry tenant insurance. But having landlord insurance is important to ensure you keep your properties and belongings safe while providing a place for your tenants to stay. Otherwise, the ensuing damage and financial loss suffered could be very costly if escalated to a lawsuit.

Does landlord insurance cover damage caused by tenants?

Landlord insurance is meant to cover your rental properties from covered perils, such as bad weather or accidental damage like a burst pipe or broken HVAC system. Your landlord insurance policy might cover accidental damage caused by your tenants, such as if they accidentally cause a kitchen fire that destroys the appliances, the walls, and the flooring. It helps pay for costs of repairs, structural replacements, and lost rental income while the rental property is being fixed or rebuilt.

On the other hand, your landlord insurance policy won’t cover intentional damages, wear and tear, and maintenance issues. For example, if your tenant steals from your rental property, puts a hole into the wall, or breaks a piece of furniture. You could retain their security deposit or make them pay as outlined in their rental agreement or lease, but your insurance company likely won’t cover repairs or any costs for the damages.

What extra coverages should I add to my landlord insurance policy?

In addition to standard coverage for rental income loss, liability, rented dwelling structures, and landlord’s belongings, you should also consider purchasing sewer backup and overland water protection.

Sewer backup coverage is common with rental houses, townhouses, apartment buildings, and other rental units. It covers damage to the sewer line that goes from your rental property to the city’s sewer drainage system. If water from the sewer, septic tank, or floor drain reaches your rental property, there could be damages to the flooring, walls, furniture, and other structures. Sewer backup coverage can help with repairs, the cost of removing sewage water from your property, and other damages that need remedying.

Overland water coverage protects your rental properties from damages caused by freshwaters, such as excessive rain, spring run-off, overflow from lakes and rivers, and melting snow. It’s widely available to almost all homeowners, tenants, and condo owners as an add-on to their policy. Water damage can be expensive to reverse, so if you rent out basements or other units that could easily suffer from an overflood of water, overland insurance is an important add-on to your landlord insurance policy.

What are some tips to find cheaper rental income property insurance?

You should always do research and compare insurance prices and policies before purchasing rental income property insurance. Understanding how insurance companies calculate your insurance risk and the different policies available is the first step to finding affordable insurance. It helps you align your insurance needs with a policy that both meets your coverage and budget requirements.

You should also try to keep your rental properties in good condition. A property that’s well maintained has lower chances of being damaged. Taking good security measures can also make your property safer and less prone to theft or other unintentional damages. A rental property that’s secure and well-kept means there’s less chance of the space being temporarily uninhabitable due to damages. As a result, insurance companies have less risk to insure your properties and you’ll likely have lower premiums.

How is rental insurance different from homeowner’s insurance?

Rental insurance protects units that are rented out to tenants, whether that’s in your own residence or other owned properties. It covers damages and unintentional accidents both from covered perils and from your tenants. A homeowner’s insurance policy covers a property owner’s primary home and its contents.

Does landlord insurance cover damage to tenant property?

Landlord insurance doesn’t cover damages to the tenant’s property, no matter how the damages were incurred. However, tenants can purchase tenant insurance or rented dwelling insurance to protect their own belongings and furniture. Although tenant insurance isn’t required, it’s strongly recommended for anyone renting a property. Landlords can also make it a required condition in the rental agreement or lease for tenants to purchase insurance before renting a property.

What does landlord insurance cover in Canada?

Landlord insurance in Canada typically covers property damage, liability protection, and loss of rental income. A landlord needs insurance to protect their investment in a rental property and to mitigate risks associated with renting out a property to tenants. Here is what is typically included in a landlord insurance policy:

Property Damage

Landlord insurance can cover damages to the rental property caused by perils such as fire, windstorms, hail, or vandalism. This coverage can help the landlord repair or rebuild the property without facing significant financial loss.

Third-Party Liability Protection

If a tenant or visitor is injured on the rental property, landlord insurance may cover the costs of legal fees, medical bills, and other expenses associated with a liability claim. This can help protect the landlord from financial losses due to legal liability.

Contents Coverage

If the landlord provides furnishings, appliances, or other personal property for the tenant’s use, landlord insurance may cover the cost of repairing or replacing those items if they are damaged or destroyed. This can help the landlord avoid significant financial loss due to damage to personal property.

Loss of Rental Income

If the rental property becomes uninhabitable due to a covered peril, landlord insurance may provide compensation for the loss of rental income during the repair or reconstruction period. This can help the landlord avoid financial hardship due to a temporary loss of rental income.

Can landlords be forced to get insurance in Ontario?

In Ontario, no law requires landlords to carry insurance for their rental properties. However, even if it is not legally required, it is generally a good idea for landlords to obtain insurance coverage to protect themselves from the financial risks associated with owning a rental property. Landlord insurance can cover property damage, liability claims, and loss of rental income, among other risks.

Moreover, while there is no legal requirement for landlords to carry insurance, some lenders or mortgage providers may require that landlords obtain insurance coverage as a condition of their loan. Additionally, some landlords may be required to carry insurance as part of their lease agreement with tenants.

Do I legally need renters insurance in Ontario?

In Ontario, renters insurance is not legally required by law. However, landlords may require tenants to obtain renters insurance as a condition of the lease agreement. 

Even if your landlord does not require renters insurance, getting coverage to protect yourself and your belongings is generally a good idea. Renters’ insurance is typically affordable and can provide valuable protection for your personal belongings in unexpected events like fires, thefts, or natural disasters. It can also provide liability coverage if someone is injured in your rental unit and sues you for damages.

The coverage options and limits of a renters insurance policy can differ based on the insurance company and policy conditions. Therefore, it is advisable to carefully review your policy with a trusted insurance broker and clarify any doubts to make sure you have the appropriate coverage.

Protect Your Ontario Rental Property with Landlord Insurance

Whether you own one rental property or multiple properties, landlord insurance is always important for protecting your units against financial loss from covered perils and unintentional accidents.

Purchasing landlord insurance is easy with the help of Insurance Hero. The insurance specialists will support you throughout the process to answer any questions you have and find the right insurance plan. We help you save money and time by giving you the quotes and information you need to make a smart and informed choice.

Insurance Hero partners with many leading insurance companies, so you can compare the different plans offered and choose what’s best for you. All you need to do is submit your information using our online form or call us at 1 (855) 777 4376 to get your quote today.

At Insurance Hero, we understand you can’t control when accidents happen. Making sure you have the right coverage is usually the biggest challenge to protecting your property. To explore affordable, personalized real estate insurance in Ontario and get a complimentary quote – contact a hero for more information.