If you rent out a property in Ontario, you generally need landlord insurance—standard homeowner insurance won’t cover a tenant-occupied home. Landlord insurance covers the building, your liability as a landlord, and often lost rental income. It does not cover your tenant’s belongings, which is why many landlords require tenants to carry their own insurance.
By Navneet Saran, RIBO- and LLQP-licensed insurance broker, Brampton & GTA.
Landlord insurance vs homeowner insurance
Homeowner insurance covers a home you live in. The moment you rent the property to someone else, that policy may no longer apply. Landlord insurance is built for rental properties and adds protections a homeowner policy excludes.
What landlord insurance covers
| Coverage | What it protects |
|---|---|
| Building / structure | The rental property itself against insured perils |
| Landlord liability | If a tenant or visitor is injured on the property |
| Loss of rental income | Lost rent if the unit is uninhabitable after a covered loss |
| Optional add-ons | Contents you provide (appliances), vandalism, and more |
What it does not cover
Landlord insurance does not cover your tenant’s personal belongings. For that reason, requiring tenants to hold their own tenant insurance is a smart, common practice you can write into the lease.
Get the right rental coverage
Navneet Saran arranges landlord and rental-property coverage across Brampton and the GTA. See rental property insurance or request a quote.
Frequently asked questions
Do I need landlord insurance in Ontario?
If you rent out a property in Ontario, standard homeowner insurance generally won’t cover it. Landlord insurance is designed for rental properties and covers the building, your liability as a landlord, and often lost rental income. Most mortgage lenders also require it.
What does landlord insurance cover?
Landlord insurance typically covers the building/structure, liability if a tenant or visitor is injured, and loss of rental income if the property becomes uninhabitable after an insured event. It does not cover your tenant’s personal belongings.
What’s the difference between landlord and homeowner insurance?
Homeowner insurance is for a home you live in; landlord insurance is for a property you rent to others. Landlord policies add rental-specific protections like liability for tenant injuries and loss-of-rent coverage, which homeowner policies exclude.
Does landlord insurance cover the tenant’s belongings?
No. Landlord insurance covers your building and liability, not your tenant’s personal property. That’s why many landlords require tenants to carry their own tenant (renter’s) insurance.
Should I require my tenants to have insurance?
Yes, it’s a common and recommended practice. Requiring tenant insurance protects tenants’ belongings and can reduce disputes and liability claims. You can make it a condition in the lease.
