Landlord / Rented Dwelling Insurance


A rented dwelling is a property that is occupied by an individual, or a group of people, known as tenants. The owner of the property, known as the landlord, receives payment in exchange for the tenant(s) occupying their property.

A property that is rented out to the tenant(s) needs a special kind of insurance known as a rented dwelling insurance.

What’s Covered for the Landlord?

Similar to a homeowner’s insurance policy, these policies provide coverage for the building and detached structures. Many insurance companies offer Fire & Extended Coverage only on a rented dwelling, especially if the property is insured on its own (stand-alone). When combined with a primary property (such as a homeowner’s, condo or tenant risk), some insurers will offer Comprehensive Coverage for a rented dwelling.

A rented dwelling insurance policy will also provide coverage for the following:

Landlord Contents

This includes appliances (ie. washer, dryer, fridge, stove, dishwasher, etc) and in some cases furniture if the landlord is renting out the property furnished.

Landlord Rental Income

This provides coverage for the landlord’s rental income in the event the landlord is not able to collect rent due to an insured peril (risk).

Vandalism/Damage Caused by Tenants

This coverage is only available with certain insurance companies (and usually includes a higher deductible). Many rented dwelling insurance polices exclude damage caused by tenants, so it is highly recommended that landlords review their policy wordings carefully and also screen their tenants.

Note: a landlord has the right to do a regular walk-through of their property as long as sufficient notice is provided to their tenant(s). It is recommended that a walk-through is done once a month.

Landlord Liability

Personal liability occurs when there is an accident, whether inside or outside of the landlord’s property, that results in another person being injured or their property getting damaged by an action or failure to act for which the landlord is held legally responsible for. That means someone needs to sue the landlord and prove that they are responsible for their losses.

What About the Tenant(s)?

The tenant(s)’s personal property, liability, and additional living expenses are not covered under the rented dwelling insurance policy, and therefore it is highly recommended that all tenants carry their own tenant’s insurance policy.

A tenant insurance policy provides coverage for the following:

Tenant Contents

This provides coverage for the tenant’s personal property that they own, wear or use while residing in the property.

Tenant Additional Living Expense

This provides coverage for the necessary increases in living expenses (including moving expenses) so that the tenant can maintain a normal standard of living in the event their dwelling is unfit for occupancy due to an insured peril.

Tenant Liability

This provides coverage for any amounts the tenant is legally liable to pay as compensatory damages because of unintentional bodily injury or property damage arising out of their personal actions anywhere in the world and their ownership, use or occupancy of the rented premises.

Important Note:

The landlord and tenant(s) are not mutually exclusive when it comes to liability.  Liability depends on who, if anyone, is found negligent in the event of a loss.  The rental agreement may define who is liable in the event of certain situations.

Now What?

The information required to obtain a rented dwelling insurance quote for a landlord is not much different than that for a homeowner’s policy.  The information collected from the landlord and about the property depends on what type of dwelling is being insured (ie. condominium, single family dwelling, etc) and how it will be rented out (ie. to a single family, roomer and boarders, etc.).

If you have a rental property that you would like a quote on, or if you are considering renting out your home and would like to discuss your insurance options, please do not hesitate to contact us and one of our knowledgeable Brokers would be happy to assist you!

Thank you,

The Costen Insurance Team