Why Landlord Insurance is Essential?

Landlord Insurance in Canada is your shield against the uncertainties of rental property ownership. In this concise guide, we'll outline the essentials. Whether you're a seasoned landlord or a newbie, our tips will help you safeguard your investment and navigate the intricacies of the rental market. Stay tuned to learn about the types of coverage, cost factors, and legal requirements. Protect your investment, minimize risks, and secure your peace of mind in the competitive Canadian rental landscape.
Many of the products/services listed on this page are from our affiliate partners. We receive commissions if you purchase any of those items, but it does not influence how we review them or what ratings starS (or lack thereof) appear next to each product category in reviews like these ones! Learn more by reading Advertiser Disclosure prior to making your decision.
If you’re a landlord in Canada or thinking about becoming one, you’re making a wise investment. However, being a landlord comes with its own set of challenges and risks. That’s where Landlord Insurance comes into play. We’ll break down the essentials of Landlord Insurance in Canada. Whether you’re an experienced landlord or just starting, this guide will help you protect your investment and navigate the intricacies of rental property ownership.

What is a Landlord Insurance

Landlord Insurance in Canada is a specialized policy designed to protect property owners who rent their residential properties to tenants. This type of insurance is also known as Rental Property Insurance or Dwelling Fire Insurance. It’s distinct from regular homeowner’s insurance because it specifically addresses the unique risks and liabilities that landlords face in the rental property business. This insurance typically covers various aspects, including Property Damage, Liability Protection, Loss of Rental Income, Contents Coverage, Additional Endorsements, and Legal Expenses.

It’s optional in Canada, but getting Landlord Insurance for property owners to rent their homes or investment properties is highly advisable. Landlord Insurance policies and their coverage can vary, so it’s essential for landlords to carefully review and select a policy that best suits their individual needs.

What does standard Landlord Insurance typically cover?

Standard Landlord Insurance in Canada typically covers various aspects of rental property protection. Here’s what it typically includes:

  • Property Damage: It safeguards the rental property against potential damage caused by specified risks such as theft, vandalism, falling objects, fire, or natural disasters. The insurance will reimburse the landlord if the property incurs damage due to any of these perils.
  • Liability Protection: Insurance for legal expenses and financial responsibility in case a tenant or visitor is injured on the rental property and the landlord is liable. For example, a guest slips on a patch of ice in the driveway during winter and suffers a significant injury, resulting in medical bills and potential legal action. In this scenario, Liability Coverage in your Landlord Insurance typically covers Medical and Legal Expenses.
  • Loss of Rental Income: Receiving reimbursement for lost rental income when the property becomes uninhabitable due to a covered event, such as extensive property damage, makes collecting rent during repairs impossible. However, it’s important to note that there are standard exclusions, such as vacancy or non-renewal of the lease, tenant non-payment or lease violations, gradual damage, ongoing renovations or improvements, government actions, and more.
  • Landlord’s Belongings (Optional): Landlord Insurance may offer optional coverage for the landlord’s personal property, often called “Landlord’s Belongings” or “Contents Coverage.” This type of coverage typically encompasses items the landlord provides for tenant use within the rental property, such as appliances, furnishings, and fixtures.

What Are the Differences Between Home Insurance and Landlord Insurance?

Home InsuranceLandlord Insurance
It is designed for individuals who own and occupy the property as their primary residence.It is designed for property owners who rent out their residential properties to tenants.
It focuses on protecting the structure of the insured’s home, personal belongings, and liability coverage related to the homeowner and their family members.It focuses on protecting the rental property, rental income, and liability coverage related to the landlord’s responsibilities as a property owner.
It covers the homeowner’s personal belongings, such as furniture, appliances, clothing, and valuables.It does not cover the tenant’s personal property; it primarily focuses on the landlord’s property within the rental unit.
It does not include coverage for loss of rental income.Includes coverage for loss of rental income if the rental property becomes uninhabitable due to covered events, making it difficult to collect rent during repairs.
Typically, it has lower premiums.Typically, it has higher premiums.

Which Companies Provide Landlord Insurance?

Square Onehttps://www.squareone.ca/landlord
National Bankhttps://www.nbc-insurance.ca/on/home-property/additional-home-products.html
RBC Insurancehttps://www.rbcinsurance.com/home-insurance/other-property-insurance.html
Insure BChttps://www.bcaa.com/insurance/home/landlord
TD Insurancehttps://www.tdinsurance.com/products-services/home-insurance/tips-advice/landlord-insurance

Is Airbnb Rental Covered by Landlord Insurance?

Standard insurance policies typically do not extend coverage to short-term rental platforms such as Airbnb, VRBO, HomeAway, and similar services. However, some insurers have developed specialized insurance options, often called ‘Airbnb insurance,’ specifically tailored to address these unique rental needs.
Picture of Vik Palan

Vik Palan

Chief Editor - RoofUp

We will be happy to hear your thoughts

Leave a reply

Real Estate

Using Your RRSP for Home Purchase

Discover how to leverage your RRSP for home purchase with the Home Buyers’ Plan (HBP). Learn eligibility criteria, benefits, and scenarios outlining its application. From

Read More »