Landlord Insurance
Protect your Ontario rental property with landlord insurance that covers liability, rental income, and the home or rental unit itself.
Landlord Insurance
Your rental property is an investment. Protect it like one.
Owning a rental property comes with more than collecting rent. You’re responsible for the building, your liability, and the risks that come with having tenants. A standard homeowner’s policy generally isn’t designed for a property you’re renting out.
Landlord insurance can protect the building and other structures, as well as provide liability coverage if someone is injured on the property or you’re held responsible for damage. Depending on the policy, it can also provide coverage for lost rental income when an insured loss makes the property unfit to rent.
And let’s be honest, tenants are great, but accidents happen. A burst pipe, kitchen fire, or unexpected liability claim can turn a profitable rental into a very expensive headache.
Landlord insurance helps protect both your property and your investment income. Because owning the property is your responsibility—even when someone else is living in it.
What does landlord insurance cover?
Most landlord insurance policies are customized to meet your individual needs based on the type of property, but there are some standard coverages that help to protect landlords from common risks:
The building
Protects the actual structure, meaning the house or condo unit, from fire, water damage and other perils. This doesn’t cover intentional tenant vandalism.
Personal liability
If a tenant or visitor is accidentally injured on your property or decides to sue you, liability protection can help you cover medical and legal fees.
Your belongings
If you rent out a furnished property, contents coverage protects the possessions you own that are at the rented property. Major appliances is typical.
Medical expenses
Covers minor medical costs if someone hurts themselves on your property, whether you’re liable or not. It helps avoid hassles associated with lengthy liability claims.
Detached structures
Any structure on your property not connected to your home, like a detached garage, shed or gazebo, is covered for fire, storm damage and more.
Minor property damage
If you are responsible for minor damage to someone’s property, this coverage pays for the damage without going to court.
Fair rental income
If your property becomes unlivable and your tenants are required to leave, you can be reimbursed for lost rental income up to a limit. Following a covered loss.
Overland water
If a river overflows and your basement floods, it’s only covered if you have overland water protection. This can be difficult to get in some areas.
Sewer backup
It happens more often than you think, but sewer backup isn’t covered under homeowners insurance unless you specifically add it.
Other options to consider
Ground water
Groundwater coverage protects your home if water seeps in through cracks in your foundation. Not all companies offer it, but it’s worth considering if available.
Service line
For exterior water and sewer lines that connect your house to the main system. The city or municipality will often not cover the damage i.e. broken pipes due to tree roots.
Earthquake
This coverage is more expensive in areas known for seismic activity. Deductibles can be high, but it might make sense for you.
Legal Expenses
Need to pay for legal expenses following tenant disputes, evictions, general advise? There are endorsements for this.
Frequently asked questions about landlord insurance
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Your regular homeowner’s insurance doesn’t provide enough coverage if you rent to tenants. Whether you’re renting out your basement or multiple investment properties, getting landlord insurance is a smart move.
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Many landlord insurance policies will defend the landlord in the event of loss of rent because of a covered loss. This is called fair rental value coverage. It won’t cover you if your tenant is unable to pay rent due to financial issues or unemployment.
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No, landlord insurance does not cover damage caused by tenants or damage to tenants’ belongings. Some policies will cover certain unintentional damages caused by tenants, like fire accidents, but it’s generally recommended landlords require their tenants to carry their own insurance policies.
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Landlord insurance generally costs around 15-20% more because of the added risk of someone else living in your property. Landlord policies usually don’t cover theft or vandalism.
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Yes, this should be added as a requirement in your standard lease agreement.
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Yes, even if your tenants are related to you – even if they’re your elderly parents, siblings, cousins, etc. – you’ll need landlord insurance. Regardless of trust, adequate insurance and a tenancy agreement is a must so long as you’re offering a place to stay in exchange for rent payment. The good news however, is that there a lot of insurers that offer a family-member discount for rented dwellings, often bringing the premium down to a standard homeowners policy.
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If you have tenants, we suggest getting a landlord policy right away. If something happens and you need to make a claim, it may not be covered if your insurance company was unaware that you were renting out the property.
Save on property insurance with bundle discounts
Combine your home and auto coverage to save 10-20% on your premium.