Being a landlord, to some, is favoured as it allows you to not only purchase and maintain a property as an investment but it also allows you to have an additional income. As approximately 4.4 million Canadians live in rental housing (just under a third of the total number of households), it’s important that the landlords of those properties are protected. So regardless of whether you’ve had a rental property for years, or only acquired one recently, it is always recommended that you purchase the proper Landlord Insurance to protect yourself and your property.
What Is Landlord Insurance?
Landlord Insurance is a form of coverage that landlords buy to protect themselves and their rental property from losses or claims. While it’s not mandatory to purchase coverage as a landlord, it’s highly recommended that you research and purchase coverage so no matter what happens, you can rest easy knowing you’re protected. As coverage can vary, it’s crucial that you explain in full, the extent of your rental property and any coverage concerns you may have with your broker. This will allow them to provide you with the most up-to-date information and options regarding coverage. Having the wrong coverage in relation to your needs, or none at all, leaves yourself, the owner of the property at risk for being responsible for thousands, if not hundreds of thousands of dollars if a pipe bursts, a kitchen fire occurs, or if someone is injured.
What Does It Cover?
Landlord Insurance is extremely important coverage that every landlord must take the time to research and purchase. Without it, it can put them at risk of being financially responsible for not only the costs to repair damage to the property, but the costs if you, as the property owner is found liable or responsible for negligence. One example of this is if someone slips and falls on your property, or is injured because you failed to take proper care of the property.
With this in mind, in general, most landlords will purchase coverage that includes;
- Property damage in case there is theft, fire, weather-related or tenant damage,
- Liability that protects yourself, as the landlord, against any claims or lawsuits that are filed by tenants, guests or pedestrians as a result of your negligence of owning the property,
- Loss of Income if you find that you have lost the income you would have received if you were unable to rent out your property, because of damage or a loss occurring to make the property uninhabitable. One example of this is a fire that greatly damaged the structure of the building,
- And in some cases coverage for contents that are not owned by the tenant such as dishwashers, laundry machines, or stoves.
What Changes Your Coverage Needs
Landlord Insurance can vary not only from policy-to-policy and insurance provider-to-insurance provider, but in regards to the specific needs of the landlord. Meaning, not every policy will have the same coverage and benefits that a landlord needs, as every landlord is different. In short, some simple needs or offerings can change the type of coverage a landlord will need to purchase if they want to be adequately covered.
Some small aspects that change coverage needs are;
- Offering a fully or partially furnished property as you may want a policy that includes coverage of contents,
- If you’re the landlord of a condominium property, as you will require a condo-specific policy that includes coverage for building improvements, condo property damage, and condo liability damage,
- If you face the chance of being financially at risk if you are unable to rent out your property due to damage as you will need Rental Income Insurance,
- Or if you are the landlord for a commercial property as you will need commercial-specific coverage.
How We Can Help
The right insurance policy can help protect you from the unexpected when it comes to rental properties. And even though you can do everything you can to keep your property safe by scanning potential tenants or properly maintaining the building, sometimes things just happen and damage or a loss may occur. To properly protect your financial investment, contact your Cambridge Insurance broker to speak with someone about how you can protect your investment, no matter what happens.