What is Landlord Insurance?
Landlord insurance is a type of property insurance policy that is designed to cover claims against a rental property. The policy must accurately reflect the occupancy of the property.
For example, if you decide to rent your house out to 1 family or 6 students, the policy should state this in the occupancy description. Different types of policies exist. That is why it is important to contact Humberview Insurance to verify the type of coverages you qualify for. Our brokers are here to help you. Our goal is to educate you on what insurance is available, what may be excluded and cost savings which you as a landlord may be able to enjoy.
Whether you are renting out a basement apartment, a house to students or own a multi-level high rise, being a landlord is a tough task. We have custom insurance policies specifically designed for landlords, providing you the peace of mind that you deserve. We provide rental property insurance across Ontario, Canada. Find your type of property above and click to get a quote or call our office.
What does Landlord Insurance cover?
Depending on the property and coverages selected, landlord insurance policies should cover physical damage to the property such as:
- fire,
- windstorm,
- hail,
- impact by vehicle,
As well as, a landlord’s legal liability in relation to their rental property.
Other coverages can exist; speak with a broker to find out more.
What is excluded under a Landlord policy?
Like all insurance policies, exclusions exist. Common exclusions under a landlord policy are things like:
- vacancy,
- vandalism or malicious acts caused by tenants or their guests,
- Damage caused by deterioration or lack of maintenance,
For example; a bad windstorm comes and blows off your roof causing sudden rain damage – this could be covered under your policy. But, if the shingles are missing for some time and water damage happens over time – this would typically be excluded.
Other exclusions exist such as war and terrorism, among others; please speak with a broker to find out more.
No. Tenant’s belongings are not covered under a landlord’s policy. Tenants should always have their own tenant’s policy. A typical tenant’s policy should cover the tenant for: their contents, personal liability and additional living expenses in the event they need to live somewhere else if a claim happens – whether it was their fault or not.
I only rent out a portion of my house do I need a landlord policy?
Typically a home insurance policy can be made to include a portion of the house that is rented out. It may also depend on who you rent your house out to – example if it is just to 1 couple of 3 students, which may be a determining factor.
Can I combine my home and auto for increased savings?
Some insurance companies do give discounts for multiple properties as well as multi-policy discounts for combining your car insurance.
Can I get a standalone policy?
Standalone policies are only available for some property types.
Can I require my tenants to have tenant liability insurance?
Yes. But, you would need to include in the initial lease agreement, you should always ask for a copy of the policy on an annual basis. By including it in your initial lease, if the tenant does not have it could also make grounds for eviction. What’s important is that your lease specifically refers to tenant’s liability insurance as a requirement. Because lease agreements are never straight forward this type of question is also better asked to a lawyer or paralegal who can analyze the entire situation.
What is the difference between Landlord Insurance and regular Home Insurance?
The most important thing to know is that if you do not have a policy that accurately reflects the occupancy of your property and a claim happens – it can be denied. A typical home insurance policy will cover you and your family living in the house for things like:
- the physical structure,
- contents such as furniture and clothes,
- additional living expenses in case you have to leave the house and live elsewhere when there is a claim
- as well as personal liability insurance.
A landlord policy on the other hand is typically there to cover the
- physical structure,
- appliances,
- your loss of rental income in the event of a claim,
- and your legal liability as landlord
Can I have all my properties on one policy?
Typically you can have more than one property on a policy. But, depending on the insurance company’s rules, the characteristics of the property as well as the occupancy of the property; this will determine how many properties you may have on a policy.
Can I combine my home and auto for increased savings?
Some insurance companies do give discounts for multiple properties as well as multi-policy discounts for combining your car insurance.
What if I live out of the country, can I still get a policy?
Yes, as long as you have a local property manager, managing the property who is not the tenant and lives within 100 KM. And subject to the insurance company’s underwriting criteria.
I just purchased the property, it will be vacant and I will paint before I rent it out, am I still covered?
You need to always declare this to the company beforehand. Coverage may be restricted such as water damage and others and/or the price increased while the property is vacant or between tenants longer than 30 days. In some circumstances, another type of policy may be required.
Will a Landlord policy cover me for appliances breaking down?
No. Breakdown of appliances is not covered, and a warranty should be purchased separately from the store that you purchased the appliances from.
I am purchasing the property in a company name is this ok?
Yes, as long as the company is just a holding company for the property it is generally ok. If the business carries on other activities the insurance company may not provide a quotation.
Can I make a claim for loss rent because a tenant doesn’t pay?
No. Our policies do not cover loss of rent due to failure of a tenant to pay. Loss of rental income coverage is in the event a property suffers an insured claim such as fire and you are unable to collect rental income.
Is Landlord insurance tax deductible?
Generally, any expenses incurred for your rental property are usually tax deductible. But, for instance if you live in the house, only the additional cost for the tenant exposure should be included as a taxable expense. For more information speak with a certified accountant.
Can I rent my property on a short term platform such as Airbnb?
Specific landlord policies exist for short term renting but not all insurance companies will offer it. Therefore, speak to one of our brokers if you are planning on renting your property on a short term basis in the future.
What factors influence a quote?
There are many factors. The most common are:
- Building rebuilding cost value
- Age of the dwelling
- Updates to utilities
- the type of heating, electrical, plumbing and roof
- the occupancy of the property
- Among others
