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Landlord / Rental Insurance

Landlord / Rental Insurance

As a landlord, you have a lot to consider, such as having the right tenant, property maintenance, and taxes. When an unexpected loss happens, having the right insurance can help protect your investment.

Building Insurance

Provides coverage for repairs and/or replacement of the building structure itself.

In general, here’s what’s included for repairs and rebuild expenses when you have a claim.

  • Site clean up and debris removal
  • Construction and repair costs such as:
    • The home itself
    • The home’s systems such as electrical, heating and plumbing
    • Finishings such as flooring, counter tops, paint, or wallpaper, doors, carpets and more
  • Landscaping and fencing

What are the exceptions?

We try to offer Comprehensive Coverage whenever possible. This is subject to underwriting rules from our insurer partners, the occupancy type and the condition of the property at the time of application.

Guaranteed Replacement Cost for the Building

Also known as Guaranteed Replacement Cost coverage (GRC), this ensures that your investment property is rebuilt regardless if the amount of insurance coverage stated on the declaration is exceeded. This protects homeowners from losses from increased reconstruction costs should they suffer a loss.

Replacement Cost for the building

Depending on a variety of variable factors, your rental property may only be eligible for Replacement Cost for the building. Replacement Cost will only pay to the stated policy limits on your insurance policy.

Actual Cash Value for the building

In certain situations like claim frequency, vacancy, or lack of recent updates, your rental property may only qualify for Actual Cash Value depreciated settlement. ACV will pay a depreciated settlement based on the stated limits of insurance.

Outbuildings

Can include an unattached garage, gazebo, shed or other structures that do not form a part of the home.

Outbuildings may be as complex as a heated and powered shop or as simple as a shed that is not attached. Sometimes the outbuildings are so significant they require additional insurance to insure them fully.

Not all insurers include outbuildings so it is always good to talk to an Allwest Broker about your options and product availability.

Premises Liability

Even as a landlord, you are responsible for the condition of your property and safety of those that come on to it. Liability coverage pays damages for personal injury or property damage that you are legally obligated to pay that occurred on the rental property.

Coverage provides defense and settlement costs if you are deemed legally responsible for the loss. Your liability coverage includes property damage and personal liability protection:

  • Premises liability will provide you financial protection for claims of bodily injury and personal property damage against others
  • For example, if someone slips on the stairs, or driveway, you could be deemed legally responsible for their injuries
  • If you have liability exposures in your home such as a swimming pool, or trampoline you must disclose these to your insurer so you can ensure you are properly covered
  • Liability claims are complicated and can be lengthy, but the insurer will help you through the process

Landlord Personal Property / Contents

The policy provides protection for some landlord contents or equipment that are on the rental property.

This includes appliances and window coverings. If you have more content requirements it is important to speak with an Allwest broker.

Rental Income

If you ever have a claim, you’ll be glad you purchased rental income protection coverage.
  • Should your tenant have to move out because the home is unlivable during the repairs or rebuild, your rental income will continue for a period of time.
  • This coverage provides the monthly declared rental income until the home is repaired or rebuilt and a tenant can move back.
  • All ongoing costs, such as the mortgage, property taxes, insurance and all expenses associated with upkeep continue even during and after the loss. Rental income protection will help you continue to pay those ongoing carrying costs.

Sewer Back-Up

If you ever need it, this is one insurance coverage you’ll be glad you have.

Sewer Back-Up coverage will clean up and fix resulting damage including:

  • Clean up of grey and black water damaged areas
  • Removal and disposal of damaged materials
  • Repair and rebuild costs to make you whole again

Overland Water

There’s a lot of water in BC. This coverage will provide protection against a variety of water damage threats.

Coverage will usually include damage from:

  • Rising waters from fresh water sources that enter at ground level through windows or doors
  • Rain water, runoff and melting snow or ice
  • Rivers/lakes that overflow their banks
  • Coverage can vary from insurer to insurer so it is important to speak with your broker about your coverage needs

Is there any Overland water damage not covered?
Yes, and every policy will vary. However, in general there is no coverage for salt water flooding including tsunamis, waves or tidal waves. This is not available on a residential policy

Earthquake

If your home shakes, rattles and rolls off the foundation, sustains damage or is levelled in an earthquake, you can be protected…

Earthquake insurance protects you for:

  • Building – total and partial losses that require, repair or full replacement
  • Contents – your landlord contents are protected as well when damaged by an earthquake

This is optional coverage is subject to percentage deductibles. They are usually in the range of 5-25% calculated on the coverage limits of your building and contents amount. These deductibles will vary depending on where you live in BC.

Why is earthquake insurance expensive?
Did you know that the coast of BC is in one of the prime earthquake hot spots in the world? Our exposure to an earthquake event is much higher on the coast and thus insurers charge rates that reflect our risk.

Landlord Insurance FAQ’s

Is there any Overland water damage not covered?

Yes, and every policy will vary. However, in general there is no coverage for salt water flooding including tsunamis, waves or tidal waves. This is not available on a residential policy

Why is earthquake insurance expensive?

Did you know that the coast of BC is in one of the prime earthquake hot spots in the world? Our exposure to an earthquake event is much higher on the coast and thus insurers charge rates that reflect our risk.

Should my tenants get Renters insurance?

Yes, your Landlords insurance covers you and your location. Your tenants should get a renter’s insurance policy to cover their belongings and protect themselves with for any potential liability exposures.

Terms and conditions apply and rates, coverage, underwriting guidelines and product availability are provided by the insurance companies represented by Allwest Insurance. They are subject to change without notice.

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