Whether you own a duplex, student rental or even Airbnb, landlord insurance can help you protect your property and yourself from damage and costs associated with renters. As you say farewell to summer and “hello” to new leases and new tenants, purchasing landlord insurance in Ontario can help you keep your investment and renters safe.Keep reading to learn why rentals need more than just a standard home insurance policy!
Landlord Insurance in Ontario
Unlike specialized landlord insurance policies, a basic home insurance policy will not cover persons who do not own the property. In fact, home insurance only covers your property, additional living expenses and legal liability that pertain to you. Therefore, a basic home insurance policy does not fully consider the needs and responsibilities of a landlord.
When it comes to insuring your house, condo unit or multi-unit building, you’ll want to ask your insurance broker about policies that offer property coverage, personal liability and tenant liability coverage. And, depending on the type of rental you have, an insurance broker can help you find relevant information, competitive rates and extended coverage that give you and your tenants extra security.
If you’re a landlord, or are considering renting out your primary residence, here are some key differences between rental and homeowner insurance that you should know:
- Rental Liability: Traditionally, a rental insurance policy will assist the landlord in paying for costs associated with damage caused by renters, a benefit that you will not get from a basic home insurance policy. If, for example, you rent out your home for a weekend and your tenants damage your bathroom, your rental insurance can offset those costs. Because homeowner’s insurance requires that you live in the home, its benefits will not extend to persons who are renters.
- Personal Property: While homeowner’s insurance relates specifically to your home and its contents, landlord insurance covers specific features of the home and often excludes any personal belongings. Although most student rental homes or rental homes are unfurnished, it’s important to note that any personal items belonging to the landlord may not be covered from damages caused by renters. So, if you’ve got electronics, furniture or other valuables, you might want to consult your broker before leaving them with your tenants!
- Income Insurance: Is your property a source of income? Landlord insurance can provide landlords with financial protection if one or more tenants fail to pay rent, or if your tenants cannot live in the unit. Having income insurance will give you the ability to pay for recurring costs, like maintenance and utilities, or unforeseen circumstances, like putting your tenants up in a hotel following a fire.
As always, speaking to your Acumen insurance broker is the best way to determine not only the type of property insurance that you need, but also the inclusions that accompany specific policies. Your broker will assess your needs to help you determine whether your current insurance policy is enough to protect your property, assets and tenants for long-term, short-term or one-time rentals.
Find Your Property’s Policy Match Here!
Our knowledgeable team of insurance brokers are eager to show you how to find the right policy for your business or lifestyle. So, no matter what you’ve got planned for your rental, our team of insurance brokers will ensure that you’ve got everything you need to protect your rental portfolio. Discover insurance options that are fit for a landlord by connecting with us today!