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 much does landlord insurance cost in Canada?
The cost of landlord insurance in Canada varies depending on many factors. Property owners can expect to pay around $1,000 to $1,500 each year for landlord insurance. Your landlord insurance policy and price are based on your unique needs as a property owner. Insurance companies consider the type of landlord insurance you need, how many properties you have, and the types of coverage you want to determine your risk as a customer and your insurance premium.
How is rental insurance different from homeowner’s insurance?
Rental insurance applies to units or homes rented out to tenants on a short-term or long-term basis. It covers damages and unintentional accidents, such as sewer backup or a kitchen fire. A homeowner’s insurance policy covers a property owner’s residential home, its contents, and the primary residents, such as the owner and their spouse and dependents.
Does rental insurance cover tenant damage?
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 won’t cover repairs or any costs for the damages.
Does landlord insurance cover vacancy for a rental property?
Vacant home insurance is generally only needed if the rental property is expected to stay unoccupied for an extended period with no tenants and sometimes no belongings. Landlords might have vacant home insurance if they’re planning on selling their rental properties. It’s generally more expensive than standard landlord insurance because vacant homes pose a greater risk to insure.
Get the Landlord Insurance that Works for You
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 calls us at 1 (855) 777 4376 to get your quote today.