{"id":23880,"date":"2024-06-25T19:17:53","date_gmt":"2024-06-25T23:17:53","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=23880"},"modified":"2024-06-25T19:17:55","modified_gmt":"2024-06-25T23:17:55","slug":"landlord-insurance","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/landlord-insurance","title":{"rendered":"What Is Landlord Insurance &#038; What Does It Cover?"},"content":{"rendered":"\n\n\n<p>Landlord insurance differs from a homeowners insurance policy since you\u2019re not living in the property and may not need as much coverage for your personal belongings. However, as a landlord, you want to protect your dwelling and personal liability since anything can happen when you\u2019re not there that you could be deemed financially responsible for.<\/p>\n\n\n\n<p>In this article, we will share everything you need about landlord insurance and its coverage.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"key-takeaways&nbsp;\">Key Takeaways&nbsp;<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Rental property insurance differs from homeowners&#8217; and renters&#8217; insurance since you\u2019re not living in the unit, but you\u2019re still looking to protect yourself from any legal issues.<\/li><li>As a landlord, you still want protection for your property and any belongings you leave at the unit. However, if you operate a short-term rental, the type of insurance policy you need will change.&nbsp;<\/li><li>Your landlord insurance policy doesn\u2019t cover your tenants&#8217; personal belongings. You can request that they procure renters&#8217; insurance as a condition of the lease agreement.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-landlord-insurance?&nbsp;\">What is Landlord Insurance?&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2018\/03\/young-couple-views-rental-unit-1024x683.jpg\" alt=\"young couple excited for rental\" class=\"wp-image-5260\"\/><\/figure>\n\n\n\n<p>As a homeowner looking to rent their place out, you\u2019re likely wondering what landlord insurance is about. Home insurance for rental property coverage will protect the structure of your unit, and any personal belongings you may have in the location. It also protects you from any financial losses if a tenant can\u2019t pay their rent if the unit becomes uninhabitable.\u00a0<\/p>\n\n\n\n<p>As a landlord, you could also be held legally liable for any accidents that happen to your tenant or guests on your property due to your negligence in home repairs or maintenance.\u00a0Landlord insurance protects against this.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-does-landlord-insurance-differ-from-regular-homeowners-insurance?\">How Does Landlord Insurance Differ From Regular Homeowners Insurance?<\/h2>\n\n\n\n<p>As a landlord, it\u2019s assumed that you\u2019re not living in the home, so you won\u2019t have to spend the money on extensive personal coverage or other protection. For example, you won\u2019t have to stress about additional living expenses or personal contents since this isn\u2019t your residence. Home insurance for rental property coverage will mainly be about protecting the physical structure of your unit and your personal liability since you never know what can happen when you\u2019re not living there.&nbsp;<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/how-much-home-insurance-do-i-need\">How Much Home Insurance Do I Need?<\/a><\/p><\/section>\n\n\n\n<p>A <a href=\"https:\/\/www.zolo.ca\/blog\/what-is-home-insurance\">homeowners insurance policy<\/a> aims to protect yourself and your family regarding any damage to personal belongings. As a landlord, you\u2019re not worried about damage to your furniture or other expensive personal items.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-does-landlord-insurance-cover?\">What Does Landlord Insurance Cover?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2024\/04\/bigstock-Young-Husband-And-Wife-With-Bl-297691687-1024x683.jpg\" alt=\"\" class=\"wp-image-23604\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-general-liability\">General Liability<\/h3>\n\n\n\n<p>Landlord insurance will protect you and cover the costs if you\u2019re deemed legally liable for any injuries or damages to a third party as a result of your home ownership. For example, a guest visiting the tenant could fall over a broken tile or slip off the railing and sue you for damages.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-property-damage\">Property Damage<\/h3>\n\n\n\n<p>Rental property home insurance will cover your home&#8217;s walls, fixtures, electrical systems, and structure against any covered damages. You\u2019ll want to ensure that you customize your policy based on your unit type. For example, you&#8217;ll want a specific type of insurance if you own a home you rent as a long-term rental and different insurance for short-term rentals on <a href=\"https:\/\/www.zolo.ca\/blog\/home-insurance-and-your-airbnb\">Airbnb<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-personal-belongings-on-the-rental-property\">Personal Belongings On the Rental Property<\/h3>\n\n\n\n<p>While you may not leave your clothing behind at the rental property, you may have a lawnmower or <a href=\"https:\/\/www.zolo.ca\/blog\/best-snow-blowers\">snow blower<\/a> used to service the unit. You\u2019ll want to ensure your landlord&#8217;s insurance policy covers items like these. You may also need further coverage if you have fully furnished a rental on your own, as this means that the expensive items on the property belong to you.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-lost-rental-income\">Lost Rental Income<\/h3>\n\n\n\n<p>Rental property insurance will cover lost rental income if your tenants can\u2019t live in the unit due to a covered loss. For example, if a fire leads to extensive renovations and your tenant stops paying rent since they can\u2019t stay in the home, your landlord insurance should cover this. However, rental property insurance coverage doesn\u2019t always protect you from lost rental income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-much-does-it-cost-to-insure-rental-properties?\">How Much Does It Cost to Insure Rental Properties?<\/h2>\n\n\n\n<p>The next logical question is, how much does landlord insurance cost? <a href=\"https:\/\/www.ratehub.ca\/insurance\/rental-income-property-insurance\">Ratehub.ca<\/a> says it can <strong>cost around $900 annually to insure a house and $400 to insure a condo<\/strong>. As always, the cost will vary depending on factors. Including your personal claims history, the unit&#8217;s location, the actual structure, and safety features.&nbsp;<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/evaluate-insurance-for-homeowners\">How to Compare Home Insurance Quotes<\/a><\/p><\/section>\n\n\n\n<p>It\u2019s also important to mention that rental property insurance pricing will depend on the unit type and if it\u2019s owner-occupied. The type of landlord insurance policy may change if you\u2019re a live-in landlord or if you list your spare bedroom on Airbnb.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"do-tenants-still-need-their-own-rental-insurance?\">Do Tenants Still Need Their Own Rental Insurance?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>It\u2019s a common misconception that a landlord\u2019s insurance policy will cover the tenant automatically. Rental property insurance coverage doesn\u2019t cover other residents of your home that aren\u2019t on your policy. For example, tenants and short-term guests. Your tenants will still need a rental insurance policy of their own since they have belongings and personal liability to worry about.&nbsp;<\/p>\n\n\n\n<p>As a landlord, you can stipulate in the lease agreement that procuring <a href=\"https:\/\/www.zolo.ca\/blog\/how-tenant-insurance-protects-you\">renters insurance<\/a> is part of the terms. You\u2019ll want to stress to your tenants that your policy doesn\u2019t protect them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-landlord-insurance-doesn\u2019t-cover\">What Landlord Insurance Doesn\u2019t Cover<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2022\/02\/the-cost-to-rent-or-buy-in-2022-1024x683.jpg\" alt=\"a woman stares at receipts while working on a calculator\" class=\"wp-image-20526\"\/><\/figure>\n\n\n\n<p>One confusing area around landlord insurance is lost rental income. Rental property insurance will not protect you if a tenant stops paying rent due to a job loss or any other reason that doesn\u2019t involve a covered loss.&nbsp;<\/p>\n\n\n\n<p>This is why it\u2019s encouraged that you do the following as a landlord:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Study the local landlord-tenant laws<\/li><li>Sign a detailed lease agreement based on your provincial laws<\/li><li>Screen tenants thoroughly with reference checks<\/li><li>Request a security deposit so that you don\u2019t have to file an insurance claim for any damage to the property caused by a tenant<\/li><\/ul>\n\n\n\n<p>Unfortunately, you won\u2019t be compensated if a tenant stops paying rent because they lost their job or have decided to stop paying rent. You have to go through the legal process, which will depend on the province in which you live.&nbsp;<\/p>\n\n\n\n<section class=\"wp-block-zolo-related flex items-center py-6 leading-tight border-t border-b border-blacklight undefined\"><p class=\"font-serif pr-6 md:pr-12 mr-6 md:flex-shrink-0 border-r border-blacklight\">Related content<\/p><p class=\"related-link w-full my-0\"><a href=\"https:\/\/www.zolo.ca\/blog\/home-insurance-canada\">14 Common Home Insurance Questions &amp; Answers<\/a><\/p><\/section>\n\n\n\n<p>Landlord insurance also won\u2019t cover the following:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Damage to your tenant\u2019s personal items. If a covered loss damages the tenant&#8217;s belongings, from furniture to clothing, your policy won\u2019t help<\/li><li>General wear and tear to your property<\/li><li>Earthquakes and landslides (unless you pay for additional coverage)<\/li><li>Intentional tenant damage or tenant theft<\/li><\/ul>\n\n\n\n<p>When it comes to intentional tenant damages, theft, or refusal to pay rent, you want to look into your provincial laws to determine what could be done.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"where-to-get-landlord-insurance-quotes\">Where to Get Landlord Insurance Quotes<\/h2>\n\n\n\n<p>If you\u2019re looking for landlord insurance in Canada, you can always start with your current provider to see what they offer. If you\u2019re transitioning from a homeowner to a landlord or want an additional policy since you\u2019re adding a rental unit to your existing home, you\u2019ll want to share this information.<\/p>\n\n\n\n<p>Here\u2019s a list of some of the <a href=\"https:\/\/www.zolo.ca\/blog\/best-home-insurance\">insurance providers<\/a> that offer landlord insurance in Canada:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sonnet Insurance<\/li><li>TD Insurance<\/li><li>Square One<\/li><li>Intact Insurance<\/li><\/ul>\n\n\n\n<p>It\u2019s worth pointing out that rental property insurance differs from Airbnb insurance since it assumes you have a steady tenant and not short-term guests checking in for the weekend without proper screening (like a background check or an employment reference). As always, we recommend you speak with a qualified insurance professional to acquire the appropriate coverage for your property.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Renting a property is a big responsibility, insurance will protect your property and personal liability<\/p>\n","protected":false},"author":106,"featured_media":23881,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"guide":[],"class_list":["post-23880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/23880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=23880"}],"version-history":[{"count":8,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/23880\/revisions"}],"predecessor-version":[{"id":23889,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/23880\/revisions\/23889"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/23881"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=23880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=23880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=23880"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=23880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}