Being a landlord in Ontario comes with opportunity — steady rental income, long-term appreciation, and the chance to grow wealth through real estate. But it also comes with risk. From tenant damage to liability lawsuits, the unexpected can quickly turn a profitable rental into a financial burden.
That’s where landlord insurance Ontario comes in. Unlike standard home insurance, landlord insurance is designed specifically for rental properties, covering the risks that come with tenants and rental income.
In this guide, we’ll cover everything landlords need to know about landlord insurance Ontario in 2025 — why it matters, what coverage you need, where to get it, how much it costs, and how to build it into your pro forma.
👉 Learn more about our approach to protecting investments at AVS Hospitality.
What Is Landlord Insurance Ontario?
At its core, landlord insurance (sometimes called rental property insurance or let property insurance) protects rental property owners from risks not covered by standard homeowners insurance.
If you’re renting out a house, duplex, triplex, or multiplex, your regular homeowners policy likely won’t protect you. Instead, you need real estate rental insurance that accounts for:
Tenant-caused damage.
Loss of rental income after an insured event.
Liability if someone is injured on your property.
Specialized coverage for rental properties.
👉 Discover more about our property management services and how we help landlords prevent risks before they escalate.
Why Landlord Insurance Ontario Matters
Landlord insurance isn’t just an extra cost — it’s an investment in stability. Here’s why it’s essential in Ontario’s rental market:
1. Tenant Risks Are Real
Even great tenants can cause accidental damage. From kitchen fires to burst pipes, having the right rental house insurance coverage means you won’t shoulder repair costs alone.
2. Rental Income Is a Business Asset
If a fire or flood forces your tenants out, landlord insurance Ontario can cover lost rent until repairs are complete. Without this, you’re still paying the mortgage — with no income.
3. Liability Protection
If a tenant or visitor slips on icy stairs or trips on uneven flooring, you could face a lawsuit. Rental home insurance protects you from legal costs and settlements.
4. Peace of Mind
Owning rental properties comes with enough stress. With property insurance for rental property, you focus on growth, not what could go wrong.
👉 For a complete overview of how we integrate insurance into rental operations, visit our Rent Collection page.
What Does Landlord Insurance Ontario Cover?
Coverage varies by provider, but most rental property insurance Ontario policies include:
Property Coverage: Protects the building itself against fire, storms, theft, and vandalism.
Liability Coverage: Protects you if a tenant or guest is injured.
Loss of Rental Income: Replaces income if your property becomes uninhabitable due to an insured event.
Contents Coverage: If you provide appliances, furnishings, or fixtures, these are covered.
Optional Add-Ons: Sewer backup, earthquake coverage, or rent guarantee insurance.
📖 According to the Insurance Bureau of Canada, homeowners insurance does not extend to tenant-occupied rental properties — meaning landlords must carry specific protection.
How Much Does Landlord Insurance Ontario Cost?
Premiums depend on factors like location, property size, age, and tenant type. On average, Ontario landlords can expect:
Single-family rental: $900–$1,200 annually.
Duplex/Triplex: $1,200–$2,000 annually.
Multiplex or small apartment building: $2,000+ annually.
👉 Rule of Thumb: Landlord insurance costs 15–30% more than homeowners insurance.
Failing to switch from homeowners insurance to rental property insurance coverage could void claims entirely. Ratehub provides updated comparisons for Ontario landlords.
Where to Get Landlord Insurance in Ontario
Several reputable providers specialize in landlord insurance Ontario:
TD Insurance – Offers customizable rental property insurance.
Intact Insurance – Strong reputation in Ontario’s rental market.
Aviva – Popular for multi-unit rental homeowners insurance.
Economical Insurance – Affordable and flexible coverage.
Brokerages like BrokerLink or Surex – Great for comparing multiple real estate rental insurance policies.
🔎 The Financial Services Regulatory Authority of Ontario also provides helpful guidance on regulated insurance practices.
How to Bake Landlord Insurance Into Your Pro Forma
As a landlord, every expense affects your ROI. To ensure accurate projections, landlord insurance Ontario must be built into your pro forma.
Example:
Triplex in Kingston
Gross Rent: $5,000/month
Mortgage: $2,800/month
Taxes: $400/month
Maintenance: $300/month
Landlord Insurance Ontario: $150/month
Net Operating Income (NOI): $1,350/month
👉 As REIN points out, too many landlords overlook insurance when analyzing rental returns. Build it into your numbers from day one.
Common Mistakes Landlords Make with Insurance
Using Homeowners Insurance – Regular home insurance doesn’t cover rental risks.
Ignoring Liability – Tenant injury claims can cost hundreds of thousands.
Underinsuring – Skipping loss-of-rent coverage leaves cash flow vulnerable.
Not Reviewing Annually – As rents increase, coverage needs change.
How Much Coverage Do You Really Need?
For Ontario landlords, appropriate coverage depends on your property type:
Single-family homes: Basic landlord insurance with liability and loss of rent.
Student rentals: Higher liability coverage (more foot traffic, higher risks).
Multiplexes: Full rental property insurance coverage plus common area protection.
Minimum recommendation:
$1M–$2M liability coverage.
Full rebuild cost of the property.
Loss of rental income for at least 12 months.
Let Property Insurance vs. Homeowners Insurance
“Let property insurance” is just another term for landlord insurance Ontario. The distinction matters:
Homeowners Insurance: Covers an owner-occupied residence.
Landlord Insurance: Covers rental units with tenants.
If you’re renting — even to family — you need rental property insurance.
The Future of Landlord Insurance Ontario
Ontario’s rental market is becoming more regulated, and insurers are adapting. Expect to see:
More rent guarantee products (covering tenant non-payment).
Digital claims systems for faster turnaround.
Specialized coverage for multiplex and student rentals.
Final Thoughts
Being a landlord in Ontario is a business. Like any business, insurance is non-negotiable. Landlord insurance Ontario protects your property, your income, and your peace of mind.
From liability protection to loss-of-rent coverage, having the right rental property insurance coverage is the difference between stability and disaster.
At AVS Hospitality, we’ve seen landlords thrive with strong insurance and struggle without it. Whether you own a single rental or a portfolio of multiplexes, the message is the same: don’t cut corners on insurance.
👉 Explore our full property management services for landlords.
Get in Touch
📞 Call: 647-294-5111
📧 Email: contact@avshospitality.ca
📲 Instagram: @avs_hospitality
▶️ YouTube: AVS Hospitality Channel
👉 Website: AVS Hospitality
