Landlord Insurance Canada: What It Covers, Cost and Best Providers (2026)
Everything Canadian landlords need to know about landlord insurance. Coverage types, average costs, top providers, and how to choose the right policy.
If you own a rental property in Canada and still have a regular homeowner's insurance policy on it, you have a problem. Standard homeowner's insurance does not cover rental activities. If something goes wrong while a tenant is living there, your claim could be denied entirely.
Landlord insurance (also called rental property insurance) is specifically designed for properties rented to tenants. Here is what it covers, what it costs, and how to choose the right provider.
What Landlord Insurance Covers
Property (Building) Coverage
This is the core of any landlord insurance policy. It protects the physical structure of your rental property against covered perils, which typically include:
- Fire and smoke damage
- Windstorm and hail
- Water damage (from burst pipes, not flooding, which requires separate coverage)
- Vandalism and malicious damage
- Theft
- Falling objects
- Weight of ice and snow
Make sure your coverage amount reflects the full replacement cost of the building, not the market value or the purchase price. Replacement cost is what it would cost to rebuild the structure from scratch at current construction prices.
Liability Coverage
If a tenant, their guest, or anyone else is injured on your property and holds you responsible, liability coverage pays for legal defence costs and any settlement or judgment. Common scenarios include slip-and-fall accidents, injuries from property defects, and incidents in common areas.
Most policies start at $1 million in liability coverage. For rental properties, $2 million is recommended, and umbrella policies can provide additional coverage if you own multiple properties.
Loss of Rental Income
If your property becomes uninhabitable due to a covered event (fire, major water damage, etc.), this coverage replaces the rental income you lose while the property is being repaired. It typically covers 12 to 24 months of lost rent.
This coverage is critical. A fire that takes six months to repair could cost you $10,000 to $15,000 in lost rent alone. Loss of income coverage ensures your mortgage payments are not coming entirely out of pocket during the repair period.
Contents Coverage (If Applicable)
If you rent a furnished unit, contents coverage protects your furniture, appliances, and other belongings in the property. Tenant belongings are not covered by your policy. Tenants need their own renter's insurance for their personal property.
What Landlord Insurance Does NOT Cover
- Normal wear and tear: Insurance covers sudden events, not gradual deterioration
- Tenant's personal belongings: That is the tenant's responsibility
- Overland flooding: Requires a separate endorsement or policy
- Sewer backup: Usually available as an add-on, highly recommended
- Earthquake: Separate coverage, mainly relevant in British Columbia
- Deliberate acts by you: Intentional damage or neglect is not covered
- Vacancy beyond 30 days: Most policies exclude or limit coverage if the property is vacant for more than 30 consecutive days
Average Cost of Landlord Insurance in Canada
Landlord insurance typically costs 15% to 25% more than a standard homeowner's policy on the same property. Average annual premiums in Canada range from $1,000 to $3,500 depending on several factors:
- Property type: Single-family homes are generally cheaper to insure than multi-unit buildings
- Location: Properties in areas prone to flooding, severe weather, or high crime cost more
- Property age and condition: Newer properties with updated electrical, plumbing, and roofing get better rates
- Coverage amount: Higher replacement cost means higher premiums
- Deductible: Choosing a higher deductible ($2,000 to $5,000 vs. $1,000) lowers your premium
- Claims history: Previous claims on the property or by you personally can increase rates
- Number of units: More units generally means higher premiums but often a lower cost per unit
Top Landlord Insurance Providers in Canada
Square One Insurance
A digital-first Canadian insurer that offers customizable landlord policies. Known for competitive pricing, easy online quoting, and the ability to tailor coverage to your specific needs. Strong option for tech-savvy landlords who want to manage their policy online.
Aviva Canada
One of Canada's largest property insurers with specific landlord coverage options. Available through brokers, which means you get personalized advice. Good for landlords with multiple properties who want bundle discounts.
Intact Insurance
Canada's largest home and auto insurer. Offers rental property insurance through brokers. Strong claims handling and national coverage. Often competitive for multi-property landlords.
Wawanesa Mutual
A well-established Canadian mutual insurer with landlord-specific policies. Known for straightforward coverage and good customer service. Available through brokers across most provinces.
Duuo (by Co-operators)
An innovative digital platform by Co-operators that offers on-demand landlord insurance. Particularly interesting for short-term rental hosts, but also offers standard landlord policies.
How to Choose the Right Policy
- Get multiple quotes: Contact at least three providers or use a broker who can compare on your behalf
- Verify replacement cost coverage: Make sure the building coverage reflects what it would actually cost to rebuild, not the market value
- Add sewer backup coverage: It is inexpensive and the damage it covers is not
- Check the vacancy clause: Understand what happens to your coverage if the property sits empty between tenants
- Review liability limits: $2 million minimum is recommended for rental properties
- Ask about discounts: Multi-policy, claims-free, and updated systems (electrical, plumbing, heating) often qualify for discounts
- Read the exclusions carefully: Know what is NOT covered before you need to make a claim
Requiring Tenant Insurance
While you cannot force tenants to have renter's insurance under the Ontario Standard Lease (it is not a mandatory term), you can strongly recommend it. Tenant insurance typically costs $20 to $40 per month and covers their personal belongings plus personal liability.
When tenants have their own insurance, they are less likely to file claims against your policy for incidents involving their belongings, which helps keep your premiums stable.
Landlord Insurance and Tax Deductions
Your landlord insurance premium is fully tax-deductible as a rental expense on the CRA T776 form. Keep your annual policy statement or premium receipts for your records. This deduction applies regardless of whether you make any claims during the year.
Landlord insurance is not optional. It is a fundamental cost of doing business as a rental property owner. The right policy protects your investment, your income, and your personal assets from the unpredictable events that every landlord eventually faces.