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How Much Does Landlord Insurance Cost in Ontario?

Jul 17 2021

Landlord insurance costs can differ greatly depending on several contributing factors. Is it a commercial or residential space? Does it have safety features? Where’s the property located? Is it an old building? All these and more affect the computation of your insurance premiums.

If you are considering getting landlord insurance, this guide tells you all you need to know. We’ll break down the details of your landlord insurance cost in Ontario and share a few example premiums.

Let’s get started!

Landlord insurance symbolized by a key with a tag saying “insurance”

What Is Landlord Insurance? 

Landlord insurance falls under commercial insurance, regardless of whether you rent out commercial or residential space. It’s a risk management policy that protects you and your investment properties from unforeseen events that may cause damage or harm.

Landlord Insurance vs. Home Insurance 

Landlord insurance is not the same as home insurance. If you are renting out your house, home insurance alone may have exclusions towards tenant-related damages. It will not give you any protection for lost rental income or third-party liabilities. All of which are covered by landlord insurance.

Landlord Insurance vs. Commercial Property Insurance

Commercial property insurance is a lot closer to what landlord insurance offers. Both insurance types provide income protection and protection for the property itself. However, commercial property insurance typically does not include liability protection in case a third party (e.g. tenant or visitor) is injured and files a lawsuit.

On the other hand, comprehensive landlord insurance can be customized to address the unique risks of different leasing businesses. For this alone, paying for landlord insurance cost is worth it.

Coverage of Landlord Insurance 

Not all landlord insurance is the same. The benefits should outweigh the landlord insurance cost. Hence, it is important to look closely at the coverage inclusions.

To maximize protection, what you need is all-inclusive landlord insurance that gives you the following scope of coverage:

1. Structure Protection 

A comprehensive landlord insurance plan by KASE Insurance protects the actual building, structure, or space in the event of physical damage by a covered cause. Depending on your plan, this can include damages and losses due to:

  • Fire
  • Flooding
  • Wind, lightning, and hail
  • Acts of vandalism and burglary

In the event that your physical property suffers damage from covered causes, landlord insurance will cover repair and replacement costs.

2. Contents of Space/Structure Protection 

This is a necessary coverage for you if you are renting out a fully furnished space with appliances or have equipment within the premises used for the upkeep of your property (e.g. lawn mowers or snowblowers).

All in all, the contents of your rented space can cost you thousands of dollars in repairs or replacement if they are damaged. But with a comprehensive landlord insurance, you can rest assured that you’ve got everything covered no matter what happens.

3. Income Protection (Business Interruption Protection) 

A comprehensive landlord insurance plan will cover lost income if your rental property becomes uninhabitable or inaccessible due to damage or other covered causes.

A few examples include fires that can damage the property to the point that it cannot be used or a landslide that will force tenants out. When repairs are being made during the time frames , landlord insurance will cover you for lost rental income.

4. Liability Protection 

Even seemingly small things, like a misplaced tile, loose steps, lack of railings, or a falling ceiling fixture or panel, can cost you thousands of dollars in legal settlements if your tenants or their visitors are injured and take legal action. These can lead to legal liability due to negligence on the landlord’s side. In such events, landlord insurance protection will cover settlements relating to injuries and/or third-party property damage.

A tenant falling from a staircase in a rental property

Examples of Landlord Insurance Cost Ontario 

As we mentioned earlier, there are a number of factors that can increase or decrease the premium of landlord insurance. Here are a few example rates in Canada:

  • Landlord insurance for a house can cost around $75 per month
  • Landlord insurance for a condo unit can cost about $35 per month

Generally, costs are higher for commercial spaces, which we’ll discuss further in the next section.

Factors That Affect Landlord Insurance Cost Ontario 

Commercial Spaces 

If space is rented out for commercial tenants (i.e. third-party businesses), this will increase the landlord insurance premium. This is because office spaces or stores have more people coming and going daily, translating to more potential liabilities.

Crime Rate and Risks of Natural Disaster 

The higher the crime rate and the more prone the area is to natural disasters, the higher the landlord insurance premium. Typically insurers will base this on historical data as well as observations of the area.

The Age of the Property 

This is a factor that affects any property insurance. The older the property, the higher the premiums tend to be because older properties are prone to building collapse and other severe damages.

Your Rental Rates 

Because landlord insurance has income protection, your premium can also increase slightly depending on your rental rates.

Presence of Safety Features 

Installing safety and security devices, such as burglar alarm systems, CCTVs, smoke alarms, or fire sprinklers, on your long-term or short-term rental property can decrease your landlord insurance premium.

Customized Landlord Insurance Just For You 

With landlord insurance, you’ll give yourself peace of mind knowing your rental properties are fully protected. That’s our specialty here at KASE Insurance.

Our award-winning service makes commercial insurance easy because we will be there every step of the way, from negotiating cost-effective premiums to following up on claims. We can also help you save in the long run by eliminating any costly unnecessary riders.

With KASE Insurance, you can be sure that you are in good hands!

Contact KASE Insurance today!

 

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