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Landlord Insurance

Many people purchase residential real estate and then rent it out, which is a great investment opportunity. If your plan is to become a landlord – that’s great! But there are a few things you need to know.

While residential real estate can be a great investment, it also comes with a certain level of risk. It’s important to take your job as a landlord seriously, find responsible tenants and protect your investment. Landlord insurance is an essential component when it comes to protecting you, your property, and your tenants.

Why get landlord insurance?

Landlord insurance provides financial protection against damages while your property is being rented by a tenant. As a landlord, it pays (literally) to know what you are responsible for. Of course tenants have their own responsibilities as well. It’s important that everyone knows what their rights and responsibilities are as either landlord or tenant. For more information on the responsibilities of landlords and tenants, check our blog post on how things are divided.

As a landlord you might want to encourage your tenants to get tenant insurance. It can protect their belongings in the event of a flood or theft. It can also offer them liability coverage. It’s not mandatory, but if you choose, you can require your tenants to have tenant insurance as a term of the lease.

Types of landlord insurance coverage

  • Standard landlord rental property insurance is the most common type of landlord insurance policy used when you’re renting out property.
  • Apartment building coverage is where your apartment building is designated as any residential building with at least seven apartment units for rent.
  • Condo landlord insurance is used when you rent out your condo unit to a tenant.
  • Commercial buildings insurance is used for when you own a building or property and have it leased for commercial purposes.
  • Short-term rental insurance is sometimes referred to as Airbnb insurance. Have an Airbnb or something similar? Learn more by checking out our guide on accommodation sharing websites.
  • Unoccupied landlord insurance is coverage for presently unoccupied rental property you might own.
  • Student rental insurance is coverage for rental property used by students.

What’s the difference between landlord insurance and homeowners insurance?

The way your rental property is used determines what type of insurance you need. A landlord insurance policy is used on a property you own and are renting out either completely, or partially to tenants. A home insurance policy is used on a property you own, yet don’t rent out to other people.

What does landlord insurance cover?

Landlord insurance covers the property and the things you own. Here are more details about the basic things that might be covered under your landlord policy:

Property damage

This applies if your building itself is damaged by something like weather conditions (wind, hail, and lightning), fire, or vandalism. Property coverage also includes additional items like garages, fences, gates and belongings you own that are used for property maintenance.

Lost rental income

If your tenants have to leave your rental property because of flooding, fire or any covered loss, your landlord insurance can cover rental income they don’t pay.

Liability protection

If you someone is injured or decides to sue you, liability protection can help cover legal and medical fees.

What doesn’t landlord insurance cover?

There are a few things landlord insurance will not cover. For a complete list of what isn’t included in your policy, read it carefully or talk to your broker. Here are a few of the things that won’t be covered:

  • Wear and tear.
  • Damage from pests or vermin.
  • Loss, theft or damage of your tenant’s belongings (they’ll need tenant insurance for that).

Factors that affect the cost of landlord insurance

The price of landlord insurance varies depending on many different factors. Here are a few of the things that could determine how much you pay for landlord insurance:

Type of property

Are you renting an apartment or condo? A house? A farm? The size and type of property will have an impact on price.

Age of the building

To determine your rate, the insurance company will consider the age of the building.

Property location

Insurance rates vary depending on your province, city and postal code. Rates may also vary based on how close the dwelling is to services like the fire department.

Your claims history

If you have previous claims you might have a higher rate.

Additional security features

You may get a lower insurance rate if you have an alarm system.

These are just a few of the factors insurance companies consider to determine your rate for landlord insurance.

Get landlord insurance with BrokerLink

If you’re a landlord, we know how busy life can get. BrokerLink can help. Our brokers are insurance experts. They’ll take the time to get to know you, and together, you’ll find the landlord insurance that makes sense for you. Contact BrokerLink today!

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FAQs on Landlord Insurance

What is not covered by landlord insurance?
Policies vary depending on the coverage you purchase. Talk to your broker to determine the exact coverage you have.
Is landlord insurance tax deductible?
Yes! Landlord insurance is a business expense. That means you can deduct your premiums on your income tax.
Does landlord insurance cover pest infestation?
Landlord insurance may cover pest infestation. It depends on the exact coverage you have. Talk to your broker to learn more.
Are the damages caused by a tenant’s pet covered by landlord insurance?
Typically, damage caused by a pet is not covered by landlord insurance. Talk to your insurance broker to understand what is and isn’t covered under your policy.
Am I legally mandated to acquire landlord insurance?
In most cases, you are not legally required to have landlord insurance. However, it may be required as a condition of your mortgage. It is highly recommended that you purchase landlord insurance coverage to protect your investment.
What happens if I (owner of the property) decide to move into the property?
In most cases, a landlord can end a lease if they decide to move into the property. The landlord must give the tenant proper notice. The exact time period varies depends on where you live and the type of lease you have.

For more FAQs, visit the BrokerLink FAQs page.