As a Toronto condo landlord, you want property insurance for many reasons. Top of the list, you want liability coverage in case a tenant gets seriously injured on your property and sues you for the accident. Insurance for the building, appliance insurance, rental income insurance, and sewer backup insurance are also areas you may want covered. Depending on your insurance provider, you can often find a range of coverage tailored to your individual needs.
Some different types of landlord insurance
Third party-liability insurance — protects you and often covers legal fees if your tenant decides to sue you for injuries incurred while on your property.
Property damage — covers you against damage to the building, such as fire and water-damages.
Contents coverage — covers the contents of your rental property including appliances, fixtures, carpeting, and sometimes your furniture. Primarily protects against fire and water-damage.
Most insurance providers in Ontario offer these types of coverage. In addition to liability and property coverage, however, landlords might also want insurance for unpaid rent and tenant-caused damage. APRIL Canada is now offering these additional types of landlord insurance.
APRIL Canada has a track record of pushing residential insurance options since they began offering coverage for homeowners who list a short-term rental property like Airbnb. The company’s new Landlord Protection seems aimed at addressing the issues that now face landlords under Ontario’s rent control measures, namely a tougher time finding ideal tenants.
Additional types of landlord insurance
Unpaid rent insurance — covers rental income in a variety of events, such as a tenant refusing to pay rent on a binding lease, damages that make the dwelling unliveable, or a refusal to vacate the property.
Tenant-caused damage — covers damages done to the property by the tenant, including accidental damage. For instance, a tenant slowly causes water damage because they soak the bathroom floor every time they take a shower.
Here is a full PDF with the complete information on APRIL Canada’s Landlord Protection for unpaid rent and tenant damage.
The benefit of new landlord protection insurance
One take away from this additional landlord insurance is that it could alleviate a landlord’s concern about someone trying to rent with a bad credit rating. Unpaid rent insurance could allow landlords more leniency when vetting possible tenants, basing their final decision more on the quality and character of the person instead of a renter’s financial history.
Additionally, the coverage for tenant-caused damage could alleviate the worry about small accidental damages, letting landlords sleep better at night. In the possibility of accidental damages or instances of negligence, the landlord is covered without having to dip into their savings.
One last note for anyone looking to become a landlord in Ontario, you should also make sure that your tenant has renter’s insurance. Protection for yourself and your tenant is the best situation.