Rental property
Cover for property that is rented out rather than lived in by the owner
A rented property is underwritten differently from an owner-occupied one. The owner is not on site, tenants change, and the income the building produces is itself exposed. Total Risk Managers looks at rental property risks for licensed brokers across Canada.
Houses to small multi-unit
Single dwellings, condominium units, and smaller residential buildings
Between tenants
If the property is standing empty, see our vacant property page
Broker only
Submissions reach us through a licensed broker
Appetite
What we look at
Rental property covers a wide range of arrangements. These are the ones to send us:
- Single-family homes rented out
- Condominium units rented out
- Small multi-unit residential
- Owner-occupied with a rented unit
- Newly purchased and being tenanted
- Between tenants
Student housing and short-term or nightly rentals are looked at case by case. Send the details rather than assuming the answer either way.
What the cover addresses
How rental property is usually insured
A landlord policy generally works across these areas. What applies to any one risk depends on the policy issued and the risk itself.
The building
Physical damage to the structure from insured perils.
Landlord contents
Appliances, furnishings and equipment the owner supplies, as distinct from the tenant’s own belongings.
Loss of rental income
The rent that stops arriving while a damaged property cannot be occupied.
Liability
Claims brought against the owner arising from the property, which a personal home policy would not respond to once the property is rented out.
Water damage
Often the largest source of loss in tenanted property, and usually where the underwriting questions concentrate.
Periods of vacancy
Cover changes when a property stands empty between tenants. That is treated separately, and it is worth flagging in the submission.
Before you send
What to include in a rental property submission
A submission that answers these upfront can be quoted without us coming back to ask.
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The property
Full address, construction, year built, number of units, and the values at risk.
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The systems
Age and type of roof, wiring, plumbing and heating, and the date of any updates. On older buildings this is usually the deciding factor.
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The tenancy
Who lives there, how long the current tenancy has run, whether tenants are screened, and whether leases are written.
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Occupancy right now
Whether it is tenanted today or standing empty. If it is empty, tell us since when and why — that changes which product applies.
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The owner and the history
How many rental properties the owner holds, whether they self-manage or use a property manager, and any losses in the last five years.
Common questions
Questions brokers ask about rental property
Why will a personal home policy not cover a rented property?
A homeowner policy is written on the basis that the owner lives there. Once the property is rented out, the occupancy has changed, the owner is no longer on site, and the property is producing income — three things the policy was not priced or worded for.
Insurers usually treat that as a different class of business, which is why a rented property needs a landlord form rather than an endorsement on a personal policy.
What happens when the property is empty between tenants?
An empty building is a different risk. Nobody is there to notice a leak, a break-in or a heating failure, so the same event tends to cost far more.
Most landlord wordings deal with vacancy specifically. If a property is going to stand empty for a stretch, flag it in the submission — we also write vacant property, so it may simply be the other product. See our vacant properties page.
Does the tenant need their own insurance?
A landlord policy covers the building and the owner’s interest. It does not cover the tenant’s belongings or the tenant’s own liability — that is what a tenant policy is for.
Many landlords now require proof of tenant insurance in the lease. Whether that requirement exists is worth noting in a submission, because it tells an underwriter something about how the property is run.
Does it matter how old the wiring, roof and plumbing are?
Yes, and on older rental buildings it is often the single most important factor. Aluminium wiring, knob-and-tube, galvanised plumbing and roofs past their expected life all drive both the price and whether the risk is acceptable at all.
Include the ages and any update dates in the submission. Where updates have been done, say who did them.
Who can approach Total Risk Managers about a rental property risk?
Licensed insurance brokers. Total Risk Managers is a Managing General Agent, which means we work through brokers rather than dealing with the public. If you own a rental property and are looking for cover, speak to a licensed broker, who can then approach us.
Have a rental property risk to place?
Email the details to submissions@totalriskmanagers.com and we will come back to you. Submissions are accepted from licensed insurance brokers.
This page describes coverage in general terms. Cover, limits and conditions vary by policy and by risk. Nothing here changes or replaces the wording of an issued policy. Coverage is arranged through a licensed insurance broker. If you are a broker, contact us. If you are not, please speak to your broker.