What You Should Know About Rental Property Insurance

Rental property insurance is often considered a must-have for landlords. But is it really the one-stop-shop solution that it gets promoted as? In our experience, it’s always a good idea to take out a solid rental property insurance policy if you intend to take on tenants. As you explore your coverage options, however, there are a few facts about rental property insurance that you should be aware of:

1. Your Renter’s Personal Property Likely Won’t Be Covered

Even if you’re offering a fully furnished rental space, your tenants will likely be bringing valuables with them that are worth hundreds or thousands of dollars. Some of the property you keep inside the unit may get coverage under your rental property insurance policy. But your tenant will need to take out their own policy in order to secure coverage for their electronics, laptops, and other valuables.

2. Rental Property Insurance Can Protect Against Liability Claims

It’s not a pleasant thought to think about it, but slip and fall accidents can happen to anyone at any time. If a tenant was to trip over your carpet or take a fall in your lobby and hurt themselves, the court system could hold you legally and financially responsible. Much like a homeowners insurance policy or a commercial general liability insurance policy, rental property insurance can help you cover legal costs and settlement or judgment costs in the event that you’re sued by someone who was hurt while on your property.

3. Rental Property Insurance Likely Won’t Cover Damage Caused by Tenants

The unfortunate truth about being a landlord is that you can’t always predict which renters will be dream tenants for life and which ones will end up leaving on bad terms. Rental property insurance may be able to cover property damage that has been caused by vandals and thieves. But it may not extend to damage that has been caused by a vindictive tenant. 

Contact Insurance Hero to discuss how you can protect your investment with rental property insurance.

Basic Coverage Under Landlord Insurance 

Most landlord insurance policies will cover:

• Damage to the building that has been caused by an insured peril
• Liability claims if someone is injured while on your property
• Damage to items like carpets or major appliances if the harm was caused by an insured peril

How much is rental property insurance in Ontario?

That’s not an easy question to answer! The many factors that could influence your offered rental property insurance rate include:

• The location of your building
• Whether your rental property is a new build or an older one
• Your claims history
• The type of building you rent
• The state of the property and whether it needs upgrades and repairs

Here at Insurance Hero, we pride ourselves on offering the most affordable rates we can. Contact us to discuss any specific questions that you might have about insuring your rental property. Or, if you’d like a more precise estimate, go ahead and request a FREE rental property insurance quote.

What insurance is needed for rental property?

There are lots of insurance options available to landlords. But as far as the basics go, we generally recommend:

• Third-Party Liability Coverage
• Contents Coverage 
• Structural Property Coverage

Between natural disasters, electrical failures, and the very real possibility that someone might get injured while on your property, it’s important to have a rental property insurance policy that’s able to give you the coverage you need and deserve.

Does rental property insurance cover tenant damage?

Rental property insurance will commonly cover damage caused by vandalism. But the general rule of thumb is that if your tenant has been renting from you for a while, a standard rental property insurance policy may not be able to cover you against that. If tenant damage is an outcome that you want to be insured against, don’t hesitate to get in touch with us. Our team of brokers will be able to discuss your insurance options with you in greater detail.

Why Waterloo is a Great City to Own a Rental Property

As the “Waterloo” half of the “Kitchener-Waterloo” tandem, Waterloo is an important regional hub. In addition, with a population that has gone from 86,543 in 2001 to 104,986 in 2016, it’s clear that the city has no shortage of people moving in and needing places to stay.

The presence of major employers like Blackberry and Sun Life Financial is more than enough to attract people who are in that ready-to-work-but-not-ready-to-buy phase of life. And between the University of Waterloo and Wilfrid Laurier University, Waterloo also has a healthy student population that’s almost always on the lookout for affordable off-campus housing.

What does landlord insurance normally cover?

As a general rule of thumb, you can expect your landlord insurance to cover:

• Liability claims if someone has sustained a serious injury in either a rental unit or in a common area
• Insured peril-caused damage to either your building or the fixtures on your property
• Damage to certain items you keep within the rental unit, such as your major appliances or your carpeting. 

Contact us to speak with a broker who can give you more details on your unique rental property insurance options.

How Rental Property Insurance Protects Waterloo Landlords

When you’re a landlord, you have to work hard to maintain your property and protect your income. You have to make sure that your renters can pay you. And then you have to stay on top of your building’s maintenance and upkeep. 

Even when you’ve done the best you can, however, there’s no accounting for what can happen if a fire breaks out or a tenant gets injured on your property and decides to sue. And with so much of your monthly income on the line, it’s important to do what you can to protect your investment.

Rental property insurance makes it possible for Waterloo-based landlords to have a financial cushion in the event of a worst-case scenario. From repairs to rebuilds and major appliance replacements, Insurance Hero’s rental property insurance has you covered.

Ready to discuss the possibility of taking out rental property insurance? Contact us, or better yet, request your FREE rental property insurance quote today!