You need landlord insurance to protect your property from damages that can
result from a range of hazards and uncertainties. Landlord Insurance in
Ontario, typically protects your building as well as your legal liability
as a landlord.
What does Landlord Insurance in Ontario, Canada 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 an Ontario 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 in Ontario?
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 Ontario 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
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,
- 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.
What if I live out of the country, can I still get a policy for a
property in Ontario?
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
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
Is Landlord insurance in Ontario 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 landlord insurance in Ontario?
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
Who Governs Landlords in Tenants in Ontario?