Landlord and rental property insurance in British Columbia
A homeowner policy assumes you live in the home. The day tenants move in, that changes, and the policy has to change with it.
Landlord insurance is a policy written for a tenant-occupied property: the building, your rental income and your liability as an owner. Nikki Tehara, a licensed BC insurance broker, quotes and places landlord policies for owners across all of British Columbia by phone, email and e-signature.
What is landlord insurance in BC?
Landlord insurance is a property and liability policy written for a rented property rather than one you live in. It typically insures the building, the rent it earns and your liability as an owner. If tenants live in a property you own, this is the policy that fits; a standard homeowner policy is not built for that job and will typically not respond once the property is tenant occupied.
Three things separate it from a homeowner policy: rental income coverage, how tenant-caused damage is handled, and the higher liability exposure that comes with being a landlord. The property itself matters too. A single detached rental, a house with a suite, a fourplex and a rented condo are all placed differently.
What it typically covers
- The building itself, and detached structures such as a garage or a shed
- Loss of rental income when an insured loss makes the unit unfit to live in
- Contents you supply as the landlord, such as appliances, or furnishings in a furnished unit
- Your liability as a property owner if a tenant or a visitor is injured and holds you responsible
- Sudden and accidental damage from perils such as fire, windstorm and escaping water, subject to the wording
What it commonly excludes
- Wear and tear, gradual deterioration and damage from poor maintenance
- Your tenant’s belongings and your tenant’s personal liability; that is what their own tenant insurance is for
- Extended vacancy that has not been declared to the insurer
- Short-term rental use on a policy written for a long-term tenancy
- Earthquake, overland flood and sewer backup, unless added as optional coverages
- Rent a tenant simply does not pay; unpaid rent is not an insured loss
Landlord insurance in British Columbia: what actually matters here
The most important thing to know: a standard homeowner policy will typically not respond once the property is tenant occupied. It is written on the assumption that you live there. Rent the home out without rewriting the policy for rental use and you may find there is no coverage at the moment you need it most.
- Loss of rental income. If a fire or a burst pipe makes the unit unfit to live in, the mortgage does not pause. Rental income coverage replaces the rent while repairs happen, and the limit should reflect what the unit actually earns.
- Tenant-caused damage. Policies treat it differently. Sudden, accidental damage is often covered; deliberate damage by a tenant may be optional or limited. It is a detail worth checking before you bind the policy, not at claim time.
- Liability sits higher. As a landlord you are responsible for a property other people live in. Stairs, decks, railings, snow and ice: if a tenant or a visitor is hurt and holds you responsible, the liability section of the policy is what responds.
- Vacancy between tenancies. An empty property is a different risk from an occupied one, and most wordings restrict coverage once a vacancy runs past the period stated in the policy. Declare a gap between tenants so it can be handled properly.
- Short-term rentals are a separate question. A policy written for a tenant on a lease is not written for nightly guests. If any part of the year involves short-term rental use, the policy needs to be placed with that use disclosed.
Tenancies in BC run under the provincial rules for residential tenancies. The insurance side is separate from the legal side, but they meet in your lease: many landlords make tenant insurance a condition of it, which protects both you and the tenant.
What Nikki needs to quote you
- The property address
- Property type and the number of units
- Year built and square footage
- Roof, heating, electrical and plumbing details, including any updates
- Whether the property is tenant occupied right now, or vacant
- The lease term, and whether the unit is rented furnished
- Whether the property is professionally managed
- The monthly rental income
- Your mortgage lender, if there is one
- Any claims in the last 10 years
- Your current insurer and renewal date
Common questions
Can I use my homeowner policy for a rental property?
No. A standard homeowner policy is written for a home you live in, and it is generally not designed to respond once the property is tenant occupied. When a home becomes a rental, the policy needs to be rewritten for rental use. If you have converted a former home into a rental, tell your broker before the tenants move in, not after something goes wrong.
Does landlord insurance cover loss of rental income?
Many landlord policies include rental income coverage, which can replace the rent you lose while the unit is uninhabitable after an insured loss such as a fire. Limits and time periods vary between insurers, so it is worth confirming the amount matches your actual rent. It does not cover rent a tenant simply fails to pay.
What happens if the property sits empty between tenants?
Vacancy changes the risk, and most policies restrict or suspend parts of your coverage once a property has been vacant beyond the number of consecutive days stated in the wording. If you expect a gap between tenancies, or the property is being renovated, tell Nikki so the right permit or wording can be arranged before the gap starts.
Does landlord insurance cover damage caused by a tenant?
It depends on the policy. Sudden, accidental damage is often covered, while some insurers treat deliberate damage by a tenant as an optional coverage or apply special limits to it. Wear and tear is not covered. This is one of the details worth comparing between quotes rather than assuming, and it is a question Nikki checks on every landlord policy.
Can I rent my property on Airbnb with a landlord policy?
Not automatically. Short-term rental use is a different exposure from a long-term tenancy, and most landlord policies are written for tenants on a lease. If you plan to list the property on Airbnb or a similar platform, even for part of the year, say so up front so the policy can be placed with an insurer that accepts short-term rental use.
Should I require my tenants to carry tenant insurance?
Many landlords make tenant insurance a condition of the lease, and it protects both sides. Your policy covers the building and your interests; it does not cover what belongs to the tenant, or their personal liability. A tenant with their own policy is less likely to look to you after a loss, and their liability coverage can respond if they cause damage.
Do I need landlord insurance for a condo I rent out?
Yes, if you rent out a condo you need a policy written for a rented unit. The strata insures the building; your policy covers your unit improvements, contents such as appliances, your rental income and your liability, plus your exposure to the strata deductible. A standard condo owner policy written for owner occupancy does not fit a rented unit.
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Start my quoteQuotes are estimates based on the information provided. Coverage is subject to underwriting and is not in force until confirmed in writing by a licensed broker.