Landlord Insurance

Factors that influence landlord insurance costs

No two landlord insurance policies are priced exactly the same, even if both landlords rent a home or building of similar size and value. Whether you own a downtown duplex in Montreal or a lakeside cabin you rent out seasonally along Lake Erie, your landlord insurance premium is shaped by a mix of factors that determine your level of risk and how much coverage you’ll need. Here’s a breakdown of what typically influences the cost of landlord insurance in Canada:

Location of the property

A rental home in a busy urban centre like Toronto or Vancouver may cost more to insure than one in a quieter rural area due to higher property values, more claims activity, and greater exposure to risks like theft, fire, or water damage. For example, if your property is in a flood-prone region (e.g., along the Red River in Manitoba or parts of Eastern Ontario), you may also see higher premiums due to increased water damage risk.

Property type and size

Are you renting out a single-family home? A basement suite? A triplex? The type, size, and condition of your property all affect cost. Larger properties with more units typically mean more potential for claims, more liability exposure, and higher replacement costs. For example, a detached home with a finished basement suite and backyard pool will likely cost more to insure than a one-bedroom condo in a secure building.

Rental frequency and occupancy type

A long-term rental to a single tenant is generally seen as lower risk than a high-turnover property like a student rental or short-term Airbnb. This is because frequent guest turnover increases overall wear and tear on the property and opens the door to more liability and property damage.

Building age and condition

Older buildings with outdated plumbing, knob-and-tube wiring, or aging roofs tend to attract higher premiums. On the other hand, modernized systems and renovations (especially to electrical, heating, and plumbing) can help bring costs down and make your property more insurable.

Coverage types and limits

The more coverage you choose, such as policy add-ons or higher coverage limits, the more you’ll pay. For example, if you manage properties in the Greater Toronto Area (GTA), after the severe flash flooding in 2024 that led to nearly $1 billion in insured damage to personal property, according to the Insurance Bureau of Canada (IBC), you may want to add overland water and sewer backup coverage to your landlord insurance policy come renewal time. While adding these extra coverages gives you broader protection, it also raises your premium.

Claims history

Insurance providers love to see a clean track record. If you've gone several years without filing an insurance claim, you're more likely to see lower rates. But if you’ve had any recent claims or if you're known for submitting frequent claims (even small ones), it could push your premiums higher.