What Insurance Does a Landlord Need?

Landlords face a higher level of risk than the average homeowner and need an insurance policy that will properly protect their investment from damage. If you are thinking about renting out a property that you own, knowing what insurance a landlord needs will help ensure that you are properly protecting your property. At Mountainview Insurance, we understand how important it is to have the right kind of insurance for your specific needs. That is why we have provided some information about landlord insurance and how it differs from typical home insurance policies.

Learn about some important questions to ask before buying home insurance.

What is Landlord Insurance?

Landlord insurance is specifically designed to provide coverage to homeowners who are renting out their residential property, whether it is a house, condo, or townhome. Purchasing a comprehensive insurance policy can help protect you from financial losses caused by property damage due to a fire, break in, or severe weather.

What are the differences between tenant insurance and landlord insurance?

Are Landlords Required to Have Insurance?

While landlords are not required by law to purchase insurance, it is important to keep in mind that most mortgage lenders will require you to purchase a sufficient insurance policy before the property can be rented out. In most cases, landlord insurance will cover:

Property Damage

This covers any damage to the building and personal property caused by fire, theft, natural disaster, vandalism, and tenants.

Liability Insurance

This coverage protects you if a liability claim or lawsuit is filed against you by someone who was injured on your rental property. Liability insurance will help cover the costs of all bodily injury claims on your property, such as medical bills, funeral costs, legal fees, and settlement costs.

What does condo insurance in BC cover?

Loss of Income

Loss of income coverage provides compensation for lost income if the rental property becomes uninhabitable due to a covered loss like a fire or natural disaster. This policy helps cover the income that you would have been able to bring in if you were still collecting rent.

Optional Coverage

Landlords have the option to buy additional insurance coverage. This can include natural disaster insurance, rent guarantee insurance, employer liability insurance, and landlord contents insurance based on their needs.

When renting out your property, be sure to remember that landlord insurance does not provide personal liability protection for tenants and their personal belongings. This means that you should strongly consider requiring tenants to purchase their own tenant insurance policy before signing a lease agreement.

If you would like to learn more about what insurance a landlord needs or are interested in one of our home insurance policies, get in touch with the team at Mountainview Insurance. We can be reached by phone at 604-557-0255 or through our online contact form and will be happy to answer any questions you may have regarding our insurance solutions.

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