Heritage Insurance - Insurance for Landlords-Make Sure You're Covered!

Landlord Insurance – Make Sure Your Property is Covered!

Do you own a rental property? As a Landlord, be sure you have the proper insurance coverage to ensure you’re protected in the event of a mishap or crisis.

Often referred to as ‘Rental Property Insurance’, Landlord Insurance is designed for people who rent their Home, Condo or Apartment to a third-party and require insurance to cover their personal belongings as well as their exposure to liability.

Renting your property can be a great source of income and it’s critical that the property owner protect this income by ensuring they have an insurance policy specifically designed to cover rental properties.

Certain homeowner insurance policies provide coverage for renting out a portion of their real estate. This is only valid, however, if the homeowner also occupies a portion of that same property. If the owner decides to rent out the entire property, most insurance companies will require a specific Rented Property insurance policy.

What Does Rental Property Insurance Cover?

Rental Property Insurance covers a variety of elements depending on whether the property in question is a detached home or a stratified condo. Basic coverage includes:

  • Buildings
  • Rental Income
  • Landlord Property (contents insurance)
  • Landlord’s Liability

Types of Landlord Insurance

There are various types of Landlord insurance and each tends to have a different degree of associated risk. Consequently, different coverages are recommended depending on the situation.

For example, a family renting a home presents a different degree of risk than that of a student merely renting a room for a school term.

Research shows that short-term rental arrangements are often considered to be riskier than long-term tenants.

Other criteria used to determine the degree of risk for landlords is the screening method used by the homeowner in selecting their tenants.

Here are the most common types of Rental Property Insurance:

Residential Rental Property (Rented Dwelling)

Designed to protect single or multiple-family dwellings, this type of insurance is typically designed for long-term leases or rental agreement basis.

Rented Condo Insurance
A second common form of landlord insurance is referred to as Rented Condo Insurance, where the landlord owns a condo that he/she rents out to tenants. This type of policy is specifically designed to help fill in the gaps left by the Strata Corporation insurance policy.

Rented Condo Insurance is often done on a case-by-case basis to ensure the coverage is tailored to the individual risk in question.

Homesharing (Airbnb, VRBO, etc.) Rentals

The popularity of homesharing platform rentals in British Columbia has resulted in a number of insurance companies developing new and creative insurance products to deal with this demand.

The policy that best suits this category offers short-term rental coverage for accommodations booked through a given platform.  Not surprisingly, a special type of insurance is required to adequately protect properties which expose themselves within this unique environment.

This kind of short-term rental insurance can also be used to protect landlords who own remote properties, landlords who take boarders into their own homes, and even people who rent out seasonal properties.

Landlord Insurance Coverages

Most Rental Property Insurance policies are customized to meet the needs of each unique circumstance, but there are some common coverage options that help protect landlords from financial disaster, including:

Structure coverage

This is liability protection for the actual structure or portion of the structure, you are renting out. You can also get associated structure coverage for garages, sheds, and other structures on your property.

Vandalism protection

While it’s natural to want to trust your tenants, a smart, professional landlord will take into consideration every contingency. Vandalism protection will make sure that you are covered if you house a tenant who does not respect your property.

Fair rental income protection

If your property becomes uninhabitable for any reason and your tenants are forced to vacate and you experience a loss of rent, you can still get paid your rental income up to a predetermined amount.

Under construction coverage

Protects your property as it is being built, or while being renovated prior to allowing tenants.

Condo liability protection

As a landlord, never rely on your condo association insurance to protect your investment. For example, any updates or improvements you make to your condo are not covered by the condo association policy if there is a fire or some other kind of damage. You will need to protect them yourself, and that is why you need comprehensive condo coverage.

Theft coverage

If you rent out structures that include furniture and appliances, theft coverage is a smart choice in order to protect your property.

Questions about covering your rental property? We can help – talk to us!