Landlord insurance is a specialized insurance policy designed to protect property owners who rent out their homes. Being a landlord comes with various responsibilities and risks, such as property damage, liability claims, and loss of rental income. This type of insurance provides coverage for these risks and ensures that you are protected in case of unforeseen events.  

  

Is My Home Insurance Different from Landlord Insurance? 

Landlord insurance is distinct from ordinary home insurance policies. While home insurance covers your property when you live in it, landlord insurance offers coverage for rental activities. Standard home insurance policies may not cover the specific risks associated with rental properties, leaving landlords exposed to potential financial losses. Having dedicated landlord insurance ensures that you are adequately protected in case of unforeseen events. 

What is Landlord Insurance? 

Landlord insurance provides coverage for several risks, including property damage, loss of rental income, and liability protection. Property damage coverage protects you against losses incurred due to damage caused by a tenant or natural disasters such as fire, flood, or earthquake. Loss of rental income coverage protects you against losses incurred due to tenant eviction, lease termination, or property damage that makes the property uninhabitable. Liability protection covers you against claims of injury or property damage that may arise from your rental property. It also provides coverage for legal costs and medical expenses.   

Is Landlord Insurance Required in Ontario? 

Although landlord insurance is not mandatory in Ontario, it’s highly recommended for landlords. Standard home insurance policies may not provide adequate coverage for rental properties, leaving landlords vulnerable to financial losses. Having dedicated landlord insurance ensures that you are adequately protected in case of unforeseen events. 

Do Your Tenants Need Their Own Insurance? 

While landlord insurance covers your property and provides liability protection, it doesn’t extend coverage to your tenants’ personal belongings. Encouraging or even requiring your tenants to obtain renters insurance is a smart move. Renters insurance protects your tenants’ personal property and provides them with liability coverage, reducing potential disputes and ensuring comprehensive protection for everyone involved. See more on why every renter needs tenant’s insurance here.    

How Much Will Landlord Insurance Cost? 

The cost of landlord insurance can vary based on several factors, including the location of your property, its size, and the coverage options you choose. In Ontario, the average cost of landlord insurance may range from $500 to $1,500 per year. Although it may seem like an additional expense, the investment is minimal compared to the financial risks you could face without adequate coverage.  

Cayuga Mutual’s Rental Property Coverage for Landlords 

Owning a property can be a great investment, but as a landlord, you take on many risks. If you own a home, duplex or condo unit that you rent out to others for income, whether it be for: 

  • Residential 
  • Student 
  • Apartment 
  • Cottage 
  • Condo 

Your Rental Property Policy covers: 

  • Your Rental Dwelling 
  • Your Rental Contents 
  • Your Personal Liability 

Protect your revenue property and the income you receive from it. To learn more about the various coverages, visit the coverages section here, or speak to your professional agent. 

In conclusion, owning a rental property comes with unique risks and responsibilities. Mitigating these risks is critical to safeguarding your investment. Landlord insurance is a strategic investment that provides comprehensive protection for your property, income, and overall financial well-being. Don’t wait until an unforeseen event occurs—invest in landlord insurance today and secure the future of your rental property. Request a no-obligation quote today to get started!