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Landlord Insurance in Canada

WOWA® Simply Know Your Options

Landlord insurance or rental property insurance is one of the many types of insurance policies offered by major insurance companies in Canada. Owning a rental property comes with its own set of risks, and landlord insurance can help mitigate them. This type of insurance can protect you in the unfortunate event that your property suffers damage. It will also aid with income if your renters cannot occupy the rented property while repairs are completed. Learn about what landlord insurance covers and the various options available in Canada.

If you are a landlord looking to buy rental insurance for your property, you can contact one of the insurance providers or brokers listed below. Insurance providers may require you to apply through their agents.

Featured Landlord Insurance Providers in Canada
Insurance Provider/Broker	Channel	Provinces & Territories	Google/Trustpilot Rating (June 2026)
Zensurance*	Online Broker working with 50+ insurers	ON, BC, AB, SK, MB, NS, NB, NL, PE	4.8/5 (6,094 Google Reviews)
Square One	Agency/broker; policies underwritten by Mutual Fire Insurance Company of BC	ON, BC, QC, AB, SK, MB	4.8/5 (6,422 Google Reviews)
belairdirect	Direct insurer; Intact's direct-to-consumer brand	AB, BC, ON, QC, NB, NS, NL, PE	4.3/5 (7,015 Google Reviews)
Sonnet**	Online direct insurer; part of Definity Financial	ON, BC, QC, AB, NS, NB, PE	4/5 (6,007 Trustpilot Reviews)
Allstate	Direct insurer; also sells through agencies	ON, QC, AB, NB, NS	4.7/5 (292 Google Reviews)
TD Insurance	Direct insurer	Across Canada	1.2/5 (225 Trustpilot Reviews)
RBC Insurance	Insurance agency; home policies underwritten by Aviva General Insurance	Across Canada	1.7/5 (52 Google Reviews)

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Landlord insurance can protect you against financial losses at your rental property and can typically be customized to suit your unique requirements. It usually covers

• the building,
• contents that you own on the premises,
• liability connected to the ownership of the property, and
• loss of rental income.

Landlord insurance differs from standard home insurance because home insurance is designed with the expectation that you’ll be living in the dwelling. In most cases, the landlord won't be protected to the same extent if they don't live in the property. This is why landlords must research coverage options available to them.

Although there is no legal requirement for landlord insurance, mortgage lenders often demand it. Even without a mortgage, it's a good idea to protect a source of income.

Landlord insurance typically costs about 15–20% more than regular home insurance. For a basic policy, you can expect to pay roughly $40–$80 per month, though this varies widely by property type — condo landlord insurance is often significantly cheaper than coverage for a house.

Several factors affect your premium:

• Property size
• Property type (condo, single-family, multi-unit)
• Age and condition of the property
• Risk of natural disasters or crime (increases cost)
• Installed safety features such as alarms and smoke detectors (reduces cost)

Once you add optional coverages like overland water, sewer backup, or rent non-payment, costs rise accordingly. All in, most landlords end up spending roughly $1,000–$1,500 per year, though premiums can range from about $800 to $2,500 depending on the property and coverage chosen.

Landlord insurance includes a standard component and can include additional coverage.

Standard landlord insurance covers the core protections most landlords need, but the exact coverage can vary by insurer and policy type. A basic policy typically protects the rental building itself and includes liability coverage if someone is injured on the property or if the landlord is found legally responsible for certain damage.

Some policies may also include coverage for lost rental income after an insured loss, while others offer it as an add-on. Coverage for landlord-owned contents, such as appliances, furniture, or maintenance equipment, may also be limited, optional, or excluded depending on the policy.

Standard landlord insurance may start at around $40 to $80 per month, but premiums can be higher depending on the property’s location, size, age, rebuild cost, claims history, tenant type, and selected coverage options.

1. Property Coverage

This part of a landlord insurance policy covers physical damage to the rental property and, depending on the policy, may also cover attached or related structures such as a garage, shed, deck, or fence.

Coverage may be provided on either a named-perils or all-risks basis. Named-perils policies only cover losses caused by risks specifically listed in the policy, such as fire, wind, lightning, theft, vandalism, or falling objects. All-risks policies provide broader protection by covering direct physical damage unless the cause is specifically excluded by the policy.

2. Landlord-Owned Contents

Some landlord insurance policies include limited coverage for items the landlord owns and keeps at the rental property, but that are not considered part of the building itself. This may include furniture in a furnished rental, window coverings, tools, lawn-care equipment, or snow-removal equipment.

Coverage for appliances can vary. Built-in systems and fixtures may be covered as part of the building, while movable appliances may be treated as landlord-owned contents. Depending on the policy, landlord-owned contents coverage may be included, limited, optional, or excluded.

Landlord insurance does not cover the tenant's personal belongings. Tenants need their own tenant insurance to protect their furniture, electronics, clothing, and other personal property.

3. Liability Coverage

Landlord liability coverage helps protect landlords if they are held legally responsible for injury to another person or damage to someone else's property. For example, if a tenant or visitor is injured because of an unsafe condition at the rental property, liability coverage may help pay for legal defence costs, settlements, judgments, and eligible injury-related expenses, subject to the policy's limits and exclusions.

4. Loss of Rental Income

Loss of rental income coverage protects landlords when an insured event, such as a fire or major water damage, makes the rental unit uninhabitable and the tenant has to move out. Since landlords generally cannot collect rent while the unit is unfit for occupancy, this coverage helps replace the rental income they lose during the repair period.

The amount paid is usually based on the property's fair rental value, not necessarily the exact rent the tenant was paying. Coverage is also limited to the reasonable time needed to repair or restore the unit after the insured loss, subject to the policy's limits and conditions.

For example, if an insured loss makes the rental unit uninhabitable and repairs take one month, the policy may cover the lost rental income for that month. However, if the unit remains vacant after repairs are complete because the landlord needs time to find a new tenant, that additional vacancy period may not be covered.

1. Enhanced Water Damage

Standard insurance generally does not cover overland flooding — water that enters from outside, such as heavy rainfall, spring runoff, or an overflowing river — nor water damage from a sewer backup. These are typically available as optional add-ons:

• Sewer backup: If water enters the rental property through a sewer, sump, sewage system, or floor drain and causes damage, this policy will cover you. On average, it could cost an extra $150 - $300 per year.

• Overland water coverage: This policy covers structural damage caused by freshwater, such as heavy rain, spring runoff, and melting snow, which enters through windows and doors at ground level. On average, this policy costs an additional $100 - $400 per year, which can be reduced by bundling with sewer backup.

2. Earthquake Insurance

This isn't necessary for most landlords. However, if the property is in a high earthquake-risk area, it might be a good idea to get additional insurance. Premiums can vary significantly based on the earthquake risk, with a deductible typically between 2% and 20% of damages.

3. Extended Equipment Insurance

Standard insurance protects high-ticket items up to a certain amount. Landlords may consider this policy if they have expensive objects that cost more than what an insurer classifies as "normal." For example, landlords who keep expensive gardening or snow removal equipment on the rental property may want to protect them. The prices for this plan vary on a case-by-case basis depending on what you want to insure.

4. Short-Term Rental / Airbnb Coverage

Short-term rentals, including Airbnb and similar platforms, can create insurance gaps for landlords. While platforms such as Airbnb offer host protection programs, this coverage may not be enough to replace a landlord insurance policy or a dedicated short-term rental insurance policy. Standard landlord insurance may also exclude short-term rental activity because frequent guest turnover is considered a higher risk than a traditional long-term tenancy.

Landlords who rent out a property on a short-term basis should confirm with their insurer whether this use is covered. Depending on the insurer, short-term rental coverage may be available as an endorsement, a separate policy, or part of a broader property insurance package. This coverage may help protect against risks such as property damage, liability claims, loss of rental income after an insured loss, and, in some cases, damage to guests' belongings.

Short-term rental insurance usually costs extra, and the price can vary based on the property, location, rental frequency, platform used, and coverage limits. Some insurers may require landlords to move their main property insurance policy to them before adding short-term rental coverage.

Airbnb hosts may also have access to AirCover for Hosts, which includes host damage protection and host liability insurance. However, AirCover should not be treated as a replacement for landlord insurance or short-term rental insurance. It has its own limits, conditions, and exclusions, and standard landlord insurance may still exclude short-term rental activity unless it is specifically disclosed and covered.

5. Non-Payment of Rent

Rent guarantee insurance, where available, may help landlords recover some lost rental income if a tenant stops paying rent. Coverage is usually subject to strict conditions, limits, waiting periods, and tenant-screening requirements.

This type of coverage can be expensive and is not always available from every insurer. Landlords should compare the cost of the policy with the risk of non-payment and continue using careful tenant screening, including income verification, references, and credit checks where permitted.

Although tenant insurance is not legally required, many landlords require tenants to have it as part of the lease agreement. This can benefit both parties by clearly separating what the landlord's insurance covers from what the tenant is responsible for, reducing the risk of disputes after a loss.

Tenant insurance, also known as renters insurance, typically costs around $20 to $30 per month, depending on the tenant's location, coverage limits, deductible, and insurance provider.

A tenant insurance policy usually includes coverage for:

• Personal belongings: Covers the tenant's furniture, electronics, clothing, and other personal items against insured risks such as fire, theft, or water damage.
• Third-party liability: Protects the tenant if they are held legally responsible for injuring someone or damaging another person's property.
• Additional living expenses: Helps pay for temporary housing and other extra costs if the rental unit becomes uninhabitable due to an insured loss.

How are landlord insurance fees calculated?

The cost of landlord insurance is determined by several factors, including the type of property you're renting out and your personal information. Insurers will consider the amount of coverage you have, the structure type, the property's location, and your prior claims history.

Does homeowners insurance cover a rental property?

You'll need landlord insurance if you're renting out a separate property from your primary residence.

However, things may not be straightforward if you rent out the basement, bedroom, or separate unit within your primary residence. It is best to talk with your home insurance provider to see if you are protected in these circumstances.

Does landlord insurance cover tenants?

Landlord insurance does not cover tenants' belongings. Renters must purchase their own policy to protect their clothing, furnishings, and other possessions in the event of a loss.

Does tenant insurance cover damage to the landlord's property?

Tenant insurance typically does not cover the landlord’s property, and the landlord should ideally get landlord insurance for it.

Is landlord insurance expensive?

Landlord insurance is usually more expensive than standard home insurance because rental properties can carry additional risks. The cost depends on the property type, location, rebuild cost, claims history, tenant type, coverage limits, deductible, and optional add-ons such as sewer backup, overland water, or loss of rental income coverage.