Owning additional property aside from your home and renting it out is a great way to make some extra income. But did you make sure to talk to your Toronto insurance broker? What is covered by landlord insurance in Toronto is different than homeowner’s insurance. You want to make sure you change your insurance when you decide to rent out your property.
There is a lot that can go wrong when tenants have full access to your house. Make sure your investments are covered by getting Toronto landlord insurance with KASE Insurance.
Landlord insurance in Toronto provides a range of security protection for homeowners who rent out their property to tenants. Unlike some other types of property insurance, landlord insurance combines multiple different kinds of coverage into one policy. This can include instances involving property damage, rent payment defaults and other similar kinds of liabilities that are unique to landlord insurance in Toronto.
What liabilities are covered in your policy can vary depending on the insurance brokerage that is providing them. However, there is usually a list of coverage riders that you can pick and choose from to tailor your landlord insurance policy to suit your individual wants and needs.
Having landlord insurance in Toronto is a crucial part of being a responsible landlord. If you don’t have it, you are assuming some very heavy financial and legal risks that no one should have to bear. Not only will having landlord insurance protect your rental property, but it will also protect you. It is extremely common for negligent landlords to face serious legal charges that would have otherwise been covered if they had Toronto landlord insurance.
Standard homeowners insurance does not provide the same coverage to property that is not occupied by the owner. Even if you are renting out property for only a month per year, it is likely that your homeowners insurance claim will be denied. These policies do not provide the protection that you need.
Not obtaining landlord insurance in Toronto can also render your umbrella insurance coverage void. Umbrella insurance is only put into effect when other forms of insurance have already paid out their maximum claims. In this instance, this means that if a tenant sues you for any number of reasons and you do not have landlord insurance, your umbrella insurance carrier can also refuse to pay the claim.
Landlord insurance in Toronto covers a wide variety of liabilities that are unique to individuals who rent out their property. There are generally two types of coverage available; property protection and liability protection. These can include:
• Dwelling & Other Structure Protection: This type of coverage helps to make any repairs to your rental property should it be damaged in the instances of fire, wind, lightning, hail, or other covered losses. It also includes any detached structures on your property such as detached garages or fencing.
• Financial Protection: If your rental property ever becomes uninhabitable and your tenants are forced to move out, you will be protected against this sudden loss of rent. Landlord insurance will cover any lost income in this scenario.
• Personal Property Protection: Landlord insurance may cover equipment used for the upkeep of the property that is kept onsite such as lawnmowers or snow blowers. However, if you keep other personal items in the home you rent out that aren’t considered necessities, like a DVD player, then it likely will not be covered.
• Liability Protection: If anyone is ever injured on your rental property and you are found responsible, landlord insurance will help you pay for that individual’s medical bills or associated legal expenses.
• Optional Coverages: These aren’t traditionally included in standard landlord insurance policies, but you can opt to add them if desired. These optional coverages include vandalism, burglary (to replace stolen items used to maintain the property), making upgrades to meet new building codes, and more.
While landlord insurance will include a few compulsory articles, but there are often a few coverage riders that you can choose from to adjust your policy to suit your needs. KASE Insurance is the leading commercial insurance brokerage in the GTA that can give you the landlord insurance coverage that you need to protect you and your property.
If you own a residential house, condo, apartment or any other kind of property that you rent to tenants, some form of liability insurance is strongly recommended. Although landlord insurance is not mandatory in Ontario, there are too many unknown possibilities that result in unthinkable legal and financial burdens. As a landlord, you are susceptible to a number of different liabilities that are not covered by traditional homeowners insurance policies. Not only will it protect you from suffering from financial losses as an outcome to property damage, but it will also help you in any potential landlord-tenant legal disputes.
Rent out your home responsibly and protect yourself as well as your property with landlord insurance in Toronto.
The amount of Toronto properties that are rentals has skyrocketed over the last few years with nearly 50% of Toronto households rent the homes they live in. The numbers are only continuing to rise as the city expands, resulting in Toronto having the highest number of landlords compared to any other province in Canada. Landlord insurance in Toronto is becoming more and more necessary, and a leading commercial insurance broker like KASE Insurance is ready to help you.
At KASE Insurance, we are committed to providing our clients with the mental freedom that comes with knowing they are financially protected. Our team of expert insurance brokers pride themselves on finding our clients first-rate insurance policies at best rates available.
If you are looking to protect you and your rental home with an extensive landlord insurance policy in Toronto, contact KASE Insurance today!
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