Who it’s for
- Owners of a rented condo unit, house or townhouse
- Investors with several rental properties or a small multi-unit building
- Homeowners renting out a basement, garden or laneway suite
- Business owners who hold rentals personally or through a company
What landlord insurance covers
A home policy is written for the person who lives in the house. Once someone else lives there and pays you rent, the insurer needs to know, and the coverage changes. A landlord policy typically covers:
- The building (or your unit and improvements, for a condo).
- Your liability as the owner, if a tenant or visitor is hurt because of the property’s condition.
- Rental income lost while the property is repaired after a covered loss.
- Your contents at the property, such as appliances and furniture in a furnished rental.
Condo units
The condo corporation’s policy covers the common elements and the unit as originally built. Your landlord policy needs to cover your improvements, your share of any deductible the corporation passes on to owners, your liability, and lost rent. Read the corporation’s declaration and insurance certificate; they decide where its coverage stops and yours begins.
Houses, multi-unit buildings and small portfolios
For a house or a small multi-unit building, insurers ask about construction, age, wiring, plumbing, heating, the roof, and how many units there are. Once you own several properties, it often makes sense to look at them together: consistent limits, one renewal date, and a clear view of total liability. A small multi-unit building may need a commercial policy rather than a personal one.
Secondary suites
Ontario now permits up to three residential units on many serviced residential lots, so basement, garden and laneway suites are more common. A suite changes the occupancy, the fire risk and your liability. Tell your insurer before the tenant moves in, and make sure the suite meets the municipality’s rules, because an illegal or uninspected unit can complicate a claim.
Vacancy and lost rent
Vacancy is a quiet risk. Most policies limit coverage once a property has been vacant for a set period, and a vacant property is more exposed to frozen pipes, break-ins and leaks nobody sees. Call before a renovation or a long gap between tenants. Rental income coverage covers rent lost after a covered loss, such as a fire. It doesn’t cover a tenant who stops paying.
Tenant insurance
You can require tenant liability insurance in the lease; Ontario’s standard lease includes a section for it, and the tenant must provide proof if asked. You can’t require tenants to insure their own belongings. Collect proof at move-in and at each renewal. A tenant’s liability policy can respond when the tenant causes the damage, such as a kitchen fire, instead of everything landing on your policy.
Where your business and family policies overlap
Rental properties are often where an investor’s personal and business affairs blur:
- A rental bought personally and later moved into a holding company, with the policy still in your personal name.
- A personal umbrella that doesn’t list the rental, or a holdco rental that falls outside it.
- Your own business renting space in a building you own.
- Family members living in a unit at reduced rent, which an insurer may treat differently from an arm’s-length tenancy.
Steve checks who is on title against who is on each policy, how each rental is used, and whether your umbrella covers the properties held personally. Holdco-owned rentals get their own liability limits.
How Steve works on this
Steve walks you through each rental policy, explains what it won’t cover, and gives you options and his professional opinion. He places business with more than 20 insurers, which matters for older buildings and properties that not every insurer wants. Before each renewal he calls to ask about new properties, new suites, vacancies and changes in ownership.
If you’ve added a property or a suite since your last review, it’s time for another one.
Common questions
Do I need landlord insurance if I rent out my condo?
Yes. Your condo corporation's policy covers the building's common elements and the standard unit, not your improvements, your liability as a landlord, or your lost rent. A policy written for a rented unit fills those gaps.
Can I make my tenant get tenant insurance in Ontario?
You can require tenant liability insurance in the lease; Ontario's standard lease has a section for it, and the tenant has to show proof if you ask. You can't require them to insure their own contents. Check proof at the start of each lease and at each renewal.
Does landlord insurance cover lost rent?
It can. Rental income coverage pays the rent you lose while the property is being repaired after a covered loss. It doesn't cover a tenant who simply stops paying.
What happens if my rental property is vacant?
Most policies limit or suspend some coverage after the property has been vacant for a set period, commonly around 30 days, though it varies. Tell your insurer before a long vacancy, such as a renovation or a gap between tenants, and arrange regular checks.
Do I need to tell my insurer about a basement apartment?
Yes. A second unit changes the occupancy, the liability and the fire risk. Insure it as a rental unit on a policy that knows it's there; an undisclosed suite is a common reason for claim problems.