What is Landlord Insurance and why might you need it?
Landlord insurance is a type of insurance policy that, as a property owner, you would receive to cover financial losses on your rental property. Types of rental property can range from a house, rental unit, or apartment. It also can be a condo unit, a room, or a section (like a basement) of your home.
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. Check out our guide to getting tenant’s insurance in our Tenant Insurance 101 blog post.
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?
Every policy is different. Be sure to talk to your insurance broker to determine exactly what is covered under your policy. Here are a few of the things that might be covered under landlord insurance:
- Damages brought on by fires, weather conditions (wind, hail, lightning), and other perils.
- Garages, parking spaces, fences, gates and other enclosures.
- Belongings you own that are used for property maintenance, such as, gardening tools, equipment, snow blowers, lawnmowers etc.
- Optional coverage is also available for vandalism, theft, renovation, and things that are under construction.
Still not sure if landlord insurance is right for you? Here’s a pro tip from one of our brokers:
Landlord/tenant laws may vary depending on which province you live, so make sure you do your homework before renting out your property.
Talk with one of our BrokerLink experts about landlord insurance!
BrokerLink has experts in insurance coverage, including landlord coverage for all kinds of rental property. Reach us through our 1-800 number, or visit any of our locations across Canada.
Investing in property is one of the biggest investments you’ll ever make, even if you’re not the one living in it. Make sure you protect that asset with the right insurance.
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?
Generally speaking, insurance is not tax deductible.
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.
For more FAQs, visit the BrokerLink FAQs page.