So, what is landlord insurance? It helps protect landlord from unforeseen expenses. You’d be responsible for everything your tenant doesn’t bring with them. If a large appliance malfunctions and causes damage to the property, (if it malfunction and causes a fire that causes damage, we will cover that , you have to fix it or replace it, plus cover the costs . If your tenant’s friend is injured on the property, you could be held liable. And the list goes on.
Landlord insurance is your safety net, and this guide will help you make sense of it.
Types of landlord insurance coverage
In Ontario, standard landlord insurance coverages include liability insurance, property damage insurance, loss of income insurance, as well as additional coverages that can save you money such as flooding coverage.
Liability coverage is a sure way to ease your state of mind as a landlord for those “just in case” scenarios.
An uneven floor. A broken stair, a rotting support beam. If your tenant or a guest of your tenant injures themselves on something in your place, you could be held responsible if you’re found negligent. In this case, your landlord liability coverage activates to help pay your legal fees, court expenses or any medical bills you’re deemed responsible to pay.
Property damage insurance
Another staple for landlords, this coverage activates in the event of damages caused by natural disaster, fire, electric and gas malfunctions, vandalism,
Loss of net rental income insurance
If your rented property is unliveable for tenants due to insured losses or damages, a good insurer will recover your net rental income until the property is fixed.
Additional landlord insurance coverage
In addition to the crucial coverages mentioned above, flooding coverage is important – and can be purchased as an additional endorsement.
Since you’re not in the home to monitor water usage, this coverage protects you from what your tenants may be doing. It’s especially important if you’re renting out multiple family units that each use a lot of water.
Remember that renters' insurance covers what’s theirs, not what’s yours. It provides financial protection and compensation for tenants when their personal property is damaged or stolen. It has nothing to do with the property.