In Canada, it can be difficult to find the correct landlord insurance. Typically, traditional insurance companies won't give you the security you require, and they won't cover your rental properties unless you also conduct business with them on your personal lines. One of the few firms in Canada that provides comprehensive insurance for rental properties and guaranteed building replacement cost coverage is InsureLine. At reasonable prices, you may also insure your landlord's assets and rental income. You can purchase a landlord insurance policy for as little as $40 per month.
What precisely is landlord insurance, then?
Landlord insurance is simply protection that shields property owners from financial losses at their rental properties, though policy specifics can vary based on what your individual needs are. It typically includes protection for the structure, your personal property's contents, liabilities resulting from property ownership, and lost rental income.
Let's expand on the topic of coverage.
The following are the functions of a good landlord insurance policy:
Subject to the conditions of the policy provides coverage for damage to your property, including walls, flooring, fixtures, heating, and cooling systems, and furniture (if furnished). These conditions outline the hazards you are protected from, such as fire, explosions, wind damage, etc., as well as the financial amounts you are compensated for.
Ensures that any lost rental income is reimbursed in the event that your tenants must leave the property due to a covered loss.
Covers you if your ownership of the property renders you legally accountable for the harm or property damage of a third party.
What does it not include? The building itself and any things you own on the property are effectively covered by landlord insurance. It won't provide coverage for harm to your tenants' personal property, like furniture, electronics, and other items. They'll need to purchase their own tenant insurance for that.
Do Tenants Need their own Insurance?
Although renter's insurance is not required by law for tenants, many landlords are already requiring it as a condition of the lease. Their insurance will protect their personal property as well as their liability, which could shield them from financial loss if they mistakenly harm your property.