Insurance: What is Landlord Insurance in Canada?

What is covered by Landlord Insurance?

As we mentioned earlier, landlord insurance, also known as rental property insurance for non-occupant owners, offers you coverage in three main areas. Each one is essential, so let’s take a closer look at how they protect you.

Coverage of rental property and contents that you own

With landlord insurance, you’ll get coverage on your rental property. If your building is vandalized, damaged by natural events such as hail, lightning or a storm, you will be covered for any damage caused to your property by these events. It will also cover the theft of any items you have installed in your rental. For example, if you rent a fully furnished apartment to a tenant, the tenant is also renting the furniture to you, so you will be covered for theft of the furniture (if stated in the policy). However, this does not cover the tenant’s personal belongings. They will need to apply for tenant insurance that provides coverage for their own belongings.

Liability coverage

If you are legally liable for injuries or property damages that occurs on your property, you can be sued by your tenant. With liability coverage, you’re protected from lawsuits when you’re legally legally liable.

Coverage against loss of rental income

If your rental property becomes uninhabitable due to damage caused by an insured loss (mold, infestation, fire damage) and your tenants have to leave the building, you will receive compensation to cover the loss of rental income. This payment will last until the old or new tenant moves in. Before you buy a Landlord Insurance policy, make sure you know what your policy covers, what exclusions apply and how much compensation you can expect to receive. Policies differ from one to the next, as do the requirements of different owners. For example, if you rent a fully furnished property, you can opt for full coverage instead of basic insurance.

What is not covered by Landlord Insurance?

The claims covered have already been mentioned. Now, here are the main types of situations that landlord insurance doesn’t cover:

• Freezing of plumbing pipes
• General wear and tear of a property
• Pest control
• Earthquakes (unless included as additional coverage in your insurance policy)

It’s essential to know what they are, and what exclusions you may face if you don’t comply with the conditions set out in your insurance policy.