Landlord Insurance in Ontario (2026): What It Covers and What to Tell Your Insurer

Landlord insurance in Ontario is a policy for a property you rent out to someone else. It usually has three parts: coverage for the building (and sometimes appliances you supply), coverage for the rent you lose if an insured loss makes the unit unlivable, and liability coverage if a tenant or guest is hurt and makes a claim. It does not cover your tenant's belongings or their personal liability. Wording, limits and exclusions differ by insurer, so check your policy.

The Insurance Bureau of Canada (IBC) explains that a regular home policy does not include your tenant's contents or personal liability, and that a rental property you do not live in needs a separate policy. The rest of this guide covers what is specific to Ontario landlords. For the basic comparison with a home policy, see our landlord insurance page.

Building coverage pays to repair or rebuild the structure after an insured cause of loss, such as fire or a burst pipe. What counts as an insured cause depends on the policy. In Ontario, water is where landlords are most often surprised, because several water risks are optional add-ons that depend on the insurer and the address, not standard inclusions. Sewer backup is typically an endorsement, and overland flood is a separate option again. Check your policy for which ones you actually have.

Loss of rental income is the part many new landlords overlook. IBC says landlord coverage replaces lost rental income if tenants must vacate because of damage from an insured loss. Policies commonly set a dollar limit or a maximum number of months. Rent is lost only if the damage came from something the policy covers, so ask what the limit is, how it is calculated, and whether it applies if the unit is empty between tenants.

Landlord liability coverage responds when someone claims they were injured, or their property was damaged, because of the condition of your rental. An example is a visitor who slips on a poorly maintained step. It is usually the most important limit to review, because a serious injury claim can be far larger than a property loss.

Damage caused by a tenant is where policies differ most. Some cover accidental damage; many limit or exclude vandalism, intentional damage, or wear that builds up over time. Our guide on landlord insurance and tenant damage goes through the typical situations. When you compare quotes, ask directly what is excluded, whether any limit applies to tenant-caused damage, and whether a waiting period applies.

Ontario is different from some provinces on deposits, and it affects how you plan for tenant damage. According to the Landlord and Tenant Board's guide to the Residential Tenancies Act, the deposit can be no more than one month's rent for monthly tenancies, and it can only be applied to the rent for the last month before the tenant moves out. The guide states that it cannot be used for anything else, such as repairing damage to the unit. A landlord must also pay the tenant interest on it every year.

In practice, this means there is no damage deposit sitting behind your policy. If a tenant causes damage, the guide says the tenant must repair or pay for it, and the Board can order payment if they do not. Collecting that money is a separate process from an insurance claim. This is a general summary, not legal advice; for a dispute, start with the Landlord and Tenant Board.

Your policy protects you, not your tenant. IBC recommends that the rental agreement requires the tenant to have insurance for their possessions and liability, with proof each year. That gives the tenant's own policy a way to respond if they accidentally cause a fire or water loss.

In Ontario this is a lease term, not an automatic rule. The legal information service Steps to Justice says that if the landlord used the province's standard lease, section 11 shows whether tenant insurance is required, and notes that a landlord can require liability coverage but cannot require contents insurance. Because the enforceability of this clause is a legal question, you may want to get the wording checked before relying on it.

What you insure depends on what you own.

Renting out a house

You insure the whole building, any detached structures, rental income and liability. If the property has a basement apartment or a second unit, tell the insurer; we cover that below.

Renting out a condo unit

The condominium corporation insures the common elements and, depending on its declaration and bylaws, may insure parts of the unit. You usually insure your improvements, appliances you supply, lost rent and liability. The corporation's deductible can be passed on to owners in some situations, so ask your broker how your policy responds. Our guide to condo insurance for landlords goes into this, and our Toronto condo guide covers the local picture.

Two situations commonly change which policy you need. If you rent out a basement or other suite in a home you live in, the arrangement is different from a standalone rental, and some insurers treat it differently. Our guide to insuring a basement apartment explains what to ask.

Short-term rentals are the second. The City of Toronto says short-term rentals are allowed only in your principal residence, with registration required and renewal every year. It allows up to three bedrooms in your principal residence, or the entire home for a maximum of 180 nights per calendar year. Other Ontario municipalities have their own rules, so check yours. A standard landlord or home policy may not respond to paying guests, and insurers may require a specific endorsement or policy. See our guide to Airbnb and short-term rental insurance, and disclose the plan before you list.

IBC warns that failing to disclose occupancy may void your home insurance policy, and advises telling your insurance representative before your living arrangement changes and keeping a written record. For an Ontario rental, gather these details first:

• Who will live there: a long-term tenant, students, roommates, or short-term guests.
• Whether you live in the building, and whether there is a separate suite.
• The year built and updates to the roof, wiring, plumbing and heating. Older wiring or an oil tank can affect eligibility.
• Whether the unit will sit vacant between tenants, and for how long.
• The expected monthly rent, for the rental-income limit.
• Whether any business use is planned in the unit.

Compare the building limit, rental-income limit, liability limit, deductibles and optional coverages side by side, not only the price. Neither IBC nor Statistics Canada publishes an average cost for Ontario landlord policies that we could use here, so only a quote for your actual address will answer the price question. You can start online and a licensed BlueCouch broker follows up with you.