Do you own investment property but live outside of Ontario, or even Canada?

Rental properties provide their own unique insurance challenges. We can help protect your income source from disasters, lawsuits, and income loss.

Our exclusive absentee landlord insurance program for residential rental properties can provide you with the exact coverage you need at the best possible price.
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What Is Absentee Landlord Insurance?

Absentee landlord insurance helps people who own property in Ontario protect their assets while living elsewhere. 

What Does Absentee Landlord Insurance Cover?

Similar to standard landlord insurance, these policies cover rental properties for a variety of issues, such as property damage for unforeseen events or acts of nature.

Absentee landlord insurance is designed to cover the physical property you own, including buildings and improvements. Policies can include coverage for:

  • The primary residence
  • Other buildings on the property like garages and sheds
  • Contents of the owner such as appliances or maintenance equipment
  • Liability arising from ownership of the property
  • Damage from events such as fire, vandalism, or other perils
  • Loss of rental income during repairs from a covered loss

It’s important to note that these policies differ from home insurance in that they generally don’t cover personal possessions within the home that are owned by the occupants. Even if your property is subject to a covered event such as a fire, any personal belongings of your tenant(s) are usually not covered by a landlord insurance policy.

Do You Need Absentee Landlord Insurance?

While not required by law in Canada, if you have a mortgage on your rental property, it is likely that your mortgage loan agreement will require you to have insurance. Otherwise, if your property is damaged and you default on your mortgage, there’s no guarantee your lender will recoup the money they’ve lent you by selling the property.

Even without a mortgage, maintaining insurance on your property is a smart move. Home repairs can be prohibitively expensive — especially with a catastrophic loss such as a fire — so it’s wise to have a policy that protects your real estate investment should the worst happen.

Types of Properties Absentee Landlord Insurance Covers

Our policies cover residential properties like single-family homes and condos throughout Ontario that are less than 35 years old. Sutherland Insurance’s landlord policies come with a standard $2,500 deductible, with a $5,000 sewer backup deductible. 

With all of our insurance products, Sutherland is committed to finding coverage options that suit our clients’ needs. We understand managing a rental property in Ontario while living far away can be stressful, and we take pride in helping clients gain peace of mind.

How Much Does Absentee Landlord Insurance Cost?

Every policy is different, whether you’re a small business in Cornwall or have locations throughout Ontario. The cost of your insurance depends on:

  • The age of your property
  • Where your property is located
  • The cost to rebuild your property
  • Whether you rent on a short- or long-term basis

To get an accurate quote, it's important to speak with one of our qualified brokers to understand your needs. 

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Frequently Asked Questions

Do my tenants need their own insurance?

Legally, no, your tenants are not required to have their own insurance policy. Keep in mind, however, that your policy only covers your personal property — not theirs. 

It’s up to you whether you require them to carry a tenant or renter’s insurance policy as a condition of their lease or not. Keep in mind doing so can protect you from costly legal fees should they not have adequate property coverage and try to sue you.

What isn’t covered by absentee landlord insurance?

Beyond tenant personal property, there are other things your absentee landlord policy will not cover. Typical exclusions include tenant negligence or intentional damage, normal wear and tear, and flood or earthquake damage (depending on where you live).

What is the difference between landlord and homeowner’s insurance?

Homeowner’s insurance protects your home and possessions with the understanding that you are occupying the home as your primary residence. Landlord insurance protects your real estate investment against covered losses under the assumption you are not using the property for personal use.

What happens if my property is vacant for a long period of time?

If a rental unit is vacant for an extended period, it’s good practice to let your insurance provider know. Vacant properties are often at a higher risk for vandalism, theft, and other perils, especially if you don’t live in Ontario and can’t monitor your property yourself. While an extended gap between tenants may not change your rates, notifying your insurance can help prevent any issues should a loss occur during the vacancy.