Rented Dwelling Insurance for Ontario Landlords

• Owners who moved out of their home and kept it as a rental

• Investors with a single house, townhouse or duplex rented to tenants

• Owners renting a legal basement apartment or second unit

• Landlords renting by the room to students or workers

• Families who inherited a property and are renting it out or holding it empty

• Owners of small multi-unit buildings

• Landlords whose current insurer declined them because of the tenant type, the building age or a past claim

If you rent out your own home while you also live in it, or you rent it through Airbnb or a similar service, other policies may fit better. See our short-term rental and student rental pages.

• The building. Fire, smoke, wind, hail, lightning, vandalism, theft and water damage, depending on the policy wording. Some policies are named perils and others are broader.

• Landlord liability. Pays if a tenant or visitor is injured on the property and you are found responsible, for example a fall on icy steps.

• Loss of rents. Replaces rental income while the unit cannot be lived in after a covered loss.

• Landlord contents. Appliances, furnishings and equipment you supply to tenants.

• Water and sewer backup. Often optional, and worth a close look in older neighbourhoods.

• Equipment breakdown and service line. Optional protection for furnaces, water heaters and underground lines.

• Your tenant's belongings. Tenants need their own tenant insurance. We recommend adding it as a requirement in your lease.

• Unpaid rent. A tenant who stops paying is not an insured loss.

• Damage caused by tenants. Many policies limit or exclude intentional damage and some types of tenant damage. Read the wording or let us walk you through it.

• Long vacancies. Many policies restrict coverage when a building has been empty for a set period, often 30 days. Tell us if a unit will sit vacant.

Insurers price a rental by risk. Expect questions about:

• Age of the building, roof, wiring, plumbing and heating

• Whether a basement or second unit is legal and inspected

• Number of units and the type of tenants, such as families, students or rooms rented individually

• Claims history and how long you have owned the property

• Whether a property manager is involved

• Smoke and carbon monoxide alarms, and fire separations between units

Honest, complete answers protect you. A missed detail is one of the most common reasons a landlord claim gets reduced or denied.

1. Keeping an owner-occupied policy after moving out and renting the home

1. Adding a basement apartment without telling the insurer

1. Renting by the room when the policy assumes one family

1. Letting a unit sit empty past the vacancy limit

1. Hiring unlicensed trades for wiring or plumbing

1. Not having tenants carry their own insurance

• Tell your current insurer you are moving out or renting, and switch to a rented dwelling policy before the tenant moves in

• Confirm smoke and carbon monoxide alarms work on every level

• Check the wiring, plumbing, roof and heating, and keep records of any repairs

• Confirm whether any basement or second unit is legal and inspected

• Screen tenants, and keep the application and lease on file

• Put tenant insurance in the lease and ask for proof each year

• Decide who clears snow and cuts grass, and write it down

• Keep photos of the property before each tenancy

A good lease says the tenant must carry tenant insurance with liability coverage and must give you proof. It also says who is responsible for reporting damage, how quickly, and what the tenant can and cannot alter. Ask a paralegal or lawyer to review your lease. We can tell you what insurers like to see.