Landlord insurance by Property Type
Properties Primarily Rented to Families. 1-4 Units
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For more than three decades, Humberview Insurance has been helping landlords become successful property owners. Our journey began in a market where many insurers were hesitant to provide coverage for rental properties. We developed a strategy and program to insure landlords who would otherwise pay double or triple for inferior policies. Our innovation didn't stop there. We expanded our offerings to encompass a wide range of property types, including apartment buildings, single-family rental homes, and rooming houses. Today, Humberview Insurance stands as a trusted partner for landlords throughout Ontario, committed to working alongside you to ensure your investments are protected
To discover how we can assist you, simply select your property type above and receive a personalized landlord insurance quote today.
This content is for general informational purposes regarding Ontario landlord/rental property insurance and should not be considered professional advice. Always consult with an insurance advisor for specific guidance.
Rental Property Insurance in Ontario
For over four decades, Humberview Insurance has been dedicated to serving residents of Ontario, Canada, with rental property insurance. Our experienced team offers guidance and personalized services throughout your journey as a landlord. When you're in need of insurance on a rental property, trust Humberview Insurance to protect your investments. Whether you own and operate a student rental, single-family rental, apartment building, rooming house or you're looking for homeowners insurance with a rental unit, we're here for you.
Landlord Insurance is Rental Property Insurance
Landlord Insurance, also known as Rental Property Insurance, is a specific type of property insurance tailored for property owners who rent out their properties. This insurance is designed to provide coverage that standard homeowner insurance cannot offer, addressing the unique risks faced by landlords.
Ontario rental property insurance typically encompasses a range of coverages such as property damage to the building, loss of rental income as result of an insured claim, and liability protection. Property damage coverage protects against physical damage to the property from events like fires and storms. Loss of rental income coverage comes into play if the rental property becomes uninhabitable due to covered damages, compensating the landlord for lost rent. Liability protection covers legal and medical expenses if someone is injured on the property and the landlord is found responsible.
Understanding Insurance for Rental Properties: Navigating Commercial and Personal Policies
When insuring rental properties, it's crucial to distinguish between commercial and personal policy options. Not all properties can be covered under personal lines policies, which may lead to significant coverage gaps and pose risks to landlords. To ensure you're adequately protected, consider the following points:
Landlords with several properties might find that their regular home insurance company may not cover all properties under one policy, necessitating a commercial policy.
For instance, if you're renting out a single-family home you once lived in, a personal policy might suffice. But if you're managing a building with multiple units, a commercial policy is likely necessary.
Regular Policy Review
Circumstances change; regularly review your policy to ensure it aligns with your current rental situation. Always make sure to update your insurance advisor of any changes, before they occur or as soon as possible
Planning for Risk Management
Personal policies might include certain coverages which are not typically found in commercial policies and vice-versa. This variance in coverage necessitates a thoughtful approach to managing your risk. Depending on the nature of your rental property, you may need to plan for scenarios not covered by your current policy. For example, overland water is not typically covered under a commercial policy, and ensuring your home is well protected for this risk and minimizing damage that could happen is important.
Standalone Rental Property Insurance
Standalone policies are typical when a homeowner has reached their cap with their current primary residence insurance provider. Other reasons, may necessitate a standalone policy such as living outside the country or specific attributes which the current primary residence insurer can’t insure such as occupancy
Be Prepared; Know What Landlord Insurance Covers
This coverage protects the physical structure of your rental property including walls, roof and built in fixtures against damage from events like fires and storms.
Legal liability coverage is crucial for landlords, providing protection in cases where they are held legally responsible for injuries or property damage stemming from their ownership of the rental property.
Every property is different and to ensure what kind of home insurance for a rental property you may need or qualify for you; should always speak to a licensed Landlord Insurance Broker to find out what is and is not covered under your policy. The above coverages are typical of a basic policy. The availability of the above coverages can vary depending on the property and applicant. It is essential to consult with a licensed Insurance Broker to determine which additional coverages are necessary or desirable for your property’s unique needs
Extra Insurance for a Rental Property You May Add On – Not all coverages are available for every property
This coverage helps landlords when building codes have changed since a property was built. If a property is damaged and needs repairs or rebuilding, bylaw coverage helps pay for the extra costs to bring the property up to current legal standards.
Claim protector coverage is designed to safeguard landlords against the increased cost of their insurance following a claim. It helps to stabilize the insurance rates, ensuring that one claim won’t significantly hike up the premiums. This coverage is not typically offered on commercial policies.
Rental Income Coverage
This coverage is crucial for landlords as it compensates for lost income if a rental property becomes uninhabitable due to a covered loss, like fire. It ensures the landlord continues to receive rental income while the property is being repaired for a specific limit and time period. It is relatively inexpensive coverage for the coverage it provides.
Replacement cost coverage ensures that in the event of a loss, the insurance will cover the cost of rebuilding or replacing the rental property up to the specified limit, without factoring in depreciation. It is not available for every property, especially older properties without updates.
Sewer backup coverage is essential for landlords, as it covers damage to the rental property caused by the backup of sewers, drains, or sump pump failure.
This coverage protects the rental property from damage due to ground water accumulation or heavy rain. Its availability is dependent on the location as well as the policy type. Overland water is not currently offered on commercial policies.
Service line coverage helps landlords with the cost of repairing or replacing damaged underground pipes and wiring that provide services (like water or drains) to the rental property. This coverage is not offered on most commercial policies.
This coverage is for landlords to protect against losses related to the breakdown of critical equipment in the rental property, such as HVAC systems, electrical systems, or appliances. This coverage is typically not offered on personal lines policies.
Please note that not all coverages listed above are available for every type of property. And the above should not be relied upon as advice.
Landlord insurance, also known as rental property insurance, can be structured under either a personal lines policy or a commercial policy, depending on the specific characteristics of your properties and situation. Certain coverages are exclusively available through personal policies, while others are exclusive to commercial policies. For comprehensive and tailored guidance on rental property insurance, it's essential to consult with a licensed Insurance Broker.
Keep in mind that the availability of coverages can vary among insurers and whether the property is on a personal or commercial policy. It's crucial to consider any potential coverage gaps as a landlord, and discussing your unique situation with a qualified Insurance Broker.
Know What Landlord Insurance Does Not Cover
Landlord Insurance generally does not cover damages arising from routine maintenance neglect or poor maintenance. This includes issues like seepage, leakage, or deterioration due to wear and tear. Landlords are expected to maintain the property regularly, and any damage resulting from failing to do so is usually excluded from the policy.
Tenant Belongings and Living Expenses
The personal property of tenants and their additional living expenses in case of a claim are not covered. Tenants are responsible for insuring their belongings and any relocation costs through their own renters' insurance.
Vandalism and Malicious Damages
Depending on the policy, vandalism or malicious damages, especially if caused by tenants, most likely is not covered. Some policies may offer this coverage as an optional add-on and to a specific limit, but it's not always included in standard policies and very few companies offer it.
Natural Wear and Tear
Landlord Insurance does not cover the natural aging and wearing out of a property. Items that deteriorate over time due to normal use and aging are typically the landlord's responsibility to repair or replace.
Intentional Damage or Negligence
Any damage caused intentionally by the landlord or due to gross negligence is not covered. Insurance policies are designed to protect against unforeseen and accidental damages, not those that are deliberate or due to reckless behavior.
Most home insurance companies have exclusions for things like nuclear incidents, war as well as vacancy if the property goes vacant which are also typical on an Ontario rental property insurance policy.
other exclusions may apply and its always best to speak with a Licensed rental property insurance broker or agent regarding specific properties and policies.
How Ontario Rental Property Insurance Rates are
Type and Occupancy of Property
If You are Grouping The Rental Property With Your Principal Residence
The Rebuild Cost of Your Home
Your Claims History
Discounts You Qualify For
The Number of Properties You Own
Title of The Property In your Personal Name or Company Name
Your Credit Score
Ways For Property Owners To Save on Their Ontario Landlord Insurance
Insure your Properties with your Primary Home (if possible)
If a landlord has their primary residence inured, they can often bundle their rental property subject to the insurance companies rules. This bundle can lead to discounted rates, especially when you also have car insurance with them as well.
Updates, Updates and More Updates
Regularly updating and maintaining the property can significantly lower insurance costs. This includes replacing roofs, updating wiring, plumbing, and heating systems to the modern standard. Modern, well-maintained properties are less likely to incur damages, and open up to more insurers being able to quote.
It's crucial to compare insurance offers from different providers from brokers, agents and direct companies. Prices and coverage can vary significantly between companies. By shopping around and comparing quotes, landlords can find the most cost-effective policy that still meets their needs.
A deductible is the amount paid out of pocket before the insurance coverage kicks in. By opting for a higher deductible, landlords can lower their premium costs. However, this means they'll need to pay more upfront if a claim is made.
Some insurance companies charge a financing fee for monthly payments. Paying the insurance premium in one lump sum can be more cost-effective in the long run.
Choose Occupancy Carefully
The type of tenants and the way the property is used can affect insurance costs and the amount of Ontario rental property insurance companies willing to quote.
Before automatically renewing with the current provider, landlords should review their policy and compare it with current market offerings. Sometimes, sticking with the same insurance provider can lead to loyalty discounts, but in other cases, switching providers might offer better valu
Tips for Landlords in Ontario
Know the RTA
Familiarize yourself with the Residential Tenancies Act (RTA), which governs landlord and tenant relationships in Ontario. It's crucial to understand your rights as a rental property owner and landlord and responsibilities under this law.
Screen Tenants Carefully
Conduct thorough background checks, including references, and employment verification. This helps ensure you find reliable tenants.
Provide a Safe and Habitable Environment
Ensure your rental property is in good repair and meets health, safety, and maintenance standards. Regular inspections and prompt repairs are important.
Use the Standardized Lease
Utilize the standard lease template provided by the Ontario government. This helps ensure compliance with local laws and clarity in the terms of the rental agreement.
Handle Security Deposits Appropriately
In Ontario, landlords can only ask for a rent deposit equivalent to the last month's rent. Understand the rules about how and when this deposit can be used.
Respect Tenant Privacy
Give proper notice before entering a tenant's rental unit, typically 24 hours, unless it's an emergency.
Address Tenant Concerns Promptly
Be responsive to tenant complaints or requests for repairs. Good communication can prevent small issues from becoming major disputes.
Keep Detailed Records
Maintain records of all interactions, transactions, repairs, and inspections related to your rental property. This can be invaluable in case of disputes or legal issues.
Stay Informed about changes in Law
Laws and regulations can change, so it's important to stay informed about any updates to rental laws in Ontario.
Have a list of vetted Contractors
This ensures reliable and quality maintenance for your rental properties. It also streamlines the repairs should you need to do any at your property.
Seek Professional Advice
When in doubt, consult with a legal professional or a property management expert to ensure compliance with laws and best practices.
Understand Rent Increases
Be aware of the rules regarding rent increases, including the allowable percentage increase and the required notice period
To be a successful landlord in Ontario, it’s essential to not only have adequate rental property home insurance but also to maintain a holistic and well-rounded perspective of the entire rental property landscape. This approach ensures that you are not only protecting your investment through proper insurance but also staying informed about the broader market trends, legal nuances, and property management practices that are pivotal in the dynamic world of real estate rentals.
Why Humberview Insurance For Your Rental Property
You Get One Dedicated Broker
We are not a call center, you will have the same broker for your policy.
In Business Since 1982
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Rental Property Home Insurance, Ontario By Property
Properties Primarily Rented to Families. 1-4 Units
Ontario Landlord Insurance FAQ
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:
- 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:
- 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.
Are tenants belongings covered under a landlord’s policy?
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
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.
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. Furthermore, on personal lines policies if purchasing in a company name the rate may be higher as the insurance company’s soft credit checks can only occur on an individual. Wheras, some commercial policies allow soft credit checks regardless of the name iti s in.
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