Insurance Every Ontario Landlord Should Actually Carry

By Solutions Property Management — Fri Jun 26 2026

The four insurance products that matter for a rental property, and one that most landlords don't know exists.

Home insurance is not landlord insurance. If your policy says "owner-occupied" and you have a tenant, you're not covered. Read your policy today.

**1. Landlord policy (building + liability)**

The core product. Covers the structure, liability for injuries on the property, and loss of rental income if the unit becomes uninhabitable. Expect to pay 15-30% more than an owner-occupied policy on the same building. Coverage minimum: $2M liability, replacement cost on the building.

**2. Loss of rental income**

Usually a rider on the landlord policy. Pays your rent if a fire or flood forces the tenant out. Non-negotiable on any rental you can't afford to carry empty for three months.

**3. Umbrella liability**

An additional layer of liability above your primary policy — typically $2-5M for $200-$500/year. Cheap insurance against the low-probability disaster. Slip and fall on your icy walkway becomes a much smaller problem when you're carrying $5M in liability.

**4. Sewer backup + overland water**

Not automatic in most policies. In Hamilton, where a lot of stock has older lateral connections to the city main, this is worth adding. Sewer backups are the #1 cause of insurance claims on residential properties in this region.

**The one most landlords don't know about**

**Rent guarantee insurance.** Products from a handful of Canadian providers that pay you the rent when a tenant defaults, through eviction. Premium is roughly one month's rent per year. On a portfolio, it's rarely worth it. On a single unit that would sink you if it went into arrears for six months, it's a lifeline.

Talk to a broker who specializes in landlord policies. A general home insurance agent will sell you the wrong thing 80% of the time.