Whether you rent out your basement or own separate rental properties in Toronto, you’ll need landlord insurance to protect your largest and potentially most expensive investments. Insurance Hero doesn’t just insure your building, but any detached structures, landscaping, owner belongings, and equipment on the rental property can be included in your comprehensive, affordable insurance plan.

Here’s Why You Need Landlord Insurance

A standard homeowner’s insurance policy only covers the primary residence of the homeowner, not rental properties. If you rent out rooms in your main house, basement units, or individual rental properties, you’ll need landlord insurance.

Whether you rent out properties on a long-term or short-term basis, landlord insurance is important. It 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 if you’re sued by a tenant, visitor injuries, 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.

Landlord Insurance Coverage Types

Rental property insurance is the standard type of landlord insurance used for homeowners that rent out their rooms or rental properties. Rental property insurance applies to rental units in your primary residence and when you lease out a home separate from your residence.

Condo rentals insurance applies to when property owners rent out a condo they own. It helps property owners cover belongings and damages not dealt with by the condo association. 

Apartment buildings landlord insurance is for any rental structure with seven or more individual units. It covers unintentional damages and landlord belongings in any of the apartment units.

Commercial landlords insurance applies to landlords that lease out properties for commercial purposes.

Unoccupied dwelling landlord insurance is for vacant units.

Student rental unit landlord insurance applies to properties that are rented out to students, most commonly in university or college areas.

Short-term rental landlord insurance applies to properties you lease out temporarily or periodically. It’s also called home share insurance is most commonly used for Airbnb units.

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.