Residential Rental Property Owners Insurance

Residential rental properties are buildings purchased by an investor or landlord and inhabited by tenants (persons and families) under a lease or rental agreement. These types of properties are distinguished from commercial properties whose tenants are generally corporate entities—or from hotels or motels whose customers typically do not live in the property long term.

With the right business practices, a residential rental property business can be lucrative and rewarding. However, as with most businesses, competition is fierce and unforeseen events can take its toll. What would happen to your bottom line if there was a sudden disaster such as a fire or flood? Or what if a tenant is injured on the property and you’re found to be legally responsible? Potential accidents like this means owners of residential rental properties need to be prepared for anything.

Here at KASE Insurance, we can help you get the coverage that you need for your rental property business to flourish. With the right policy in place, you’ll be able to have peace of mind, knowing that you are well protected from financial and legal risks.

What Is Residential Rental Property Owners Insurance?

Residential rental properties can take on many forms including multi-family homes, townhouses, apartment buildings, or apartment complexes. The tenants of these properties are persons or families who rent the units long-term.

Residential rental properties are common and attractive forms of property investments mainly because of how familiar the concept is. After all, many have experienced being a tenant at one point or another. This property investment comes with a host of benefits including monthly cash flow, possible property appreciation over time, and tax deductions. The success of running a rental property business hinges a lot on solid business practices. And one of which is to have the right insurance in place.

Unforeseen events such as natural disasters, property-related tenant injuries, and other accidents can generate costs and liabilities, thereby negatively impacting your bottom line. This is where the residential rental property insurance comes in.

Residential rental property insurance, also known as landlord insurance, rental property insurance, or apartment building insurance, is a comprehensive insurance policy that provides owners of rental townhouses, apartment buildings, apartment complexes, and similar properties with the protection that they need against various financial and legal risks.

Like all of our policies, residential rental property owner’s insurance can be customized and refined to your unique needs and preferences regarding what risks to cover.

Residential rental property

Why Is Residential Rental Property Owners Insurance so Important?

We’ve mentioned the potential of the residential rental property business to be lucrative and rewarding. When managed well, residential rental properties can be a stable source of monthly cash flow. Additionally, time is an ally because there is a chance for the property to appreciate over time – which is good news if you plan to sell the property in the future.

Moreover, owners of residential rental properties can also be entitled to tax deductions. Certain expenses are deductible – such as those for advertising, rental property insurance, management and administration fees, repairs and maintenance fees, and so on.

However, as with all businesses, competition can be fierce. Moreover, unforeseen events can take a toll on your revenue whether it’s in the form of income loss or added expenses that may surpass your taxes or may not be deductible to your taxes at all. The worst-case scenario is that expenses can start to eat away at savings. This is why the right protection is crucial.

With a customized residential rental property owners insurance, you can prevent being blind-sighted by these scenarios:

  • Repair costs due to damage from fire, storm, lightning, hail, flood, and the like
  • Costs to undo acts of vandalism
  • Costs due to burglary of equipment
  • Medical and legal costs due to an injured tenant wherein you are found to be legally responsible
  • Loss of income due to needed renovation after property damage
  • Loss of income due to a non-paying tenant/s

What Does Residential Rental Property Owners Insurance Cover?

In this section, we will talk more about what the rental property insurance typically covers—along with some optional coverages or add-ons.

Property Protection

In the event that your property is damaged due to fire, wind, lightning, and hail, the rental property insurance will help you to pay for repair costs. This includes detached structures such as detached garages or fences.

Financial Protection (Loss of Income)

Sudden loss of income can happen if your tenants are forced to move out because your property has become uninhabitable. This can also happen because of needed repairs for extensive damage due to fire, hail, lightning, and the like. In this scenario, rental property insurance will cover the lost rental income.

Liability Protection

In the event that someone is injured in your rental property and you are found to be legally responsible (e.g. someone slipping on an icy walkway and getting injured), this type of insurance will help you with medical and legal costs.

Optional Coverages

A few examples of optional coverages include those for burglary, vandalism, and floods. Another popular add-on is Guaranteed Income Insurance which covers the cost if a tenant fails or refuses to pay rent.

Who Needs Residential Rental Property Owners Insurance?

The rental property insurance is the recommended policy for you if you own a rental townhouse, an apartment building, an apartment complex or something similar.

Currently, this type of insurance is not required by law. But if you own a residential rental property and you want to have added peace of mind – by knowing that you are protected from unexpected costs, liabilities, and income loss – then this insurance policy is a must-have.

Why Choose KASE Insurance?

KASE Insurance is one of the top providers of apartment building insurance or rental property insurance in Toronto and the rest of Canada. We can provide you with the insurance policy that you need to protect your residential rental property business from unexpected costs and income loss. As with all our policies, we can discuss customization or add-ons to include specific risks.

We are proud to have the experience of serving businesses from various industries. And through the years, we’ve earned numerous awards and vast industry recognition. With KASE Insurance, you can be sure that you are in good hands.

If you have questions on your mind, we would be very happy to answer. There’s always someone available to get in touch with you. Contact us today and let’s get started!

Read what clients have to say about KASE

By far the most professional and trustworthy insurance brokerage I have known. We have been working with this firm for number of years now and I have nothing but good to say about their team and services. Stan and his team won't stop until we are fully satisfied. They are always on top of things, super fast in their assistance and very professional. I highly recommend this firm to anyone seeking for great insurance brokerage to work with. Big Thank You to Stan and Kase Insurance for many many years of great service!

Reviewer: Alex K


5 out of 5 stars

Stan and is team at KASE Insurance have been fantastic in explaining what insurance we needed for our business. Very hands on approach and detailed. I work highly recommend KASE Insurance for any business owner looking for great service.

Reviewer: Kyle Grooms


5 out of 5 stars

The KASE team is very easy to work with. They answer your questions quickly, walk you through the process patiently, and find you great rates. We've been working with them for a few years and we haven't felt the need to shop elsewhere because of their customer service.

Reviewer: Sasha Boersma


5 out of 5 stars

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