Landlord insurance is a specific type of home insurance in Canada for people who own rental properties. Though you don't need coverage for the belongings your tenants keep within their units (this can be covered by tenant insurance), the building itself will likely require coverage – especially if you have a mortgage.
And even if you don't have a mortgage, it's a good idea to keep such a huge investment covered – you never know when a natural disaster or a break-in can occur.
The right insurance provides as much peace of mind as it does protection.
Key Takeaways
- The best landlord insurance in Canada is Square One Landlord Insurance.
- Landlord insurance is designed to specifically cover buildings used as rental properties.
- This kind of insurance protects the property itself against damage, liability, and loss of rental income.
- Landlord insurance does not cover a tenant’s personal belongings.
The best landlord insurance companies
Picking the right company can sometimes be just as important as getting a reasonably priced policy. If it ever comes time to file a claim, you want your insurer to actually help you – or you risk making a difficult time even more stressful.
Here's an overview of three top companies you should consider in Canada, whether you're looking for landlord insurance in Ontario, Alberta, or elsewhere.
How we ranked the best landlord insurance
To evaluate landlord insurance, we analyze over 15 data points to generate a trustworthy Genius Rating. We consider all aspects of a landlord insurance policy, including overall coverage, natural disaster coverage, loss of rental income coverage, customer satisfaction, and legal protection, to assess its overall value. Then, the landlord insurance policy’s features are rated based on how they stack up against other available options.
Best landlord insurance 2025 winner – Square One Landlord Insurance
Personal Liability Coverage
Loss Of Rental Income Coverage
Landlord's Belongings
Landlord Legal Protection
If you own a rental property, you know how important it is to get the right insurance to protect investment. You need more types of coverage than regular home insurance, and valuable figuring out exactly what you need can be complicated. Square One landlord insurance can be a great place to start, with a comprehensive selection of coverages available.
Pros
Cons
Provinces
BC, AB, SK, MA, ON, MB, QC
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Get an online quote quickly + Choose from personalized coverage options.
Special Features
- Rental portal for landlords to keep track of tenants' policies
- Legal advice helpline
Personal Liability Coverage
Loss Of Rental Income Coverage
Rented Dwelling Coverage
Detatched Structures
Sewer Backup
Overland Water
Landlord's Belongings
Earthquake
Water Damage
Appliances
Landlord Legal Protection
Without the overhead costs of commissioned agents or offices coast to coast, Square One Landlord Insurance passes the savings on to their customers in the form of lower rates.
You can get a customizable online quote in just minutes and all your claims and support will be available 24/7. The website even claims that 80% of all phone calls are answered in less than one minute, so it seems they have a clear commitment to customer service.
Square One, founded in 2011, is an online-only company based out of Vancouver that operates in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec.
Sonnet Landlord Insurance
Personal Liability Coverage
Loss Of Rental Income Coverage
Landlord's Belongings
Landlord Legal Protection
Since you can never really know what will happen, landlord insurance is good for some extra peace of mind for your rental investments. In most cases, it will help protect you from property damage, loss of rental income, personal liability, and other related unexpected costs.
Pros
- Covers all the basics of landlord insurance
- Optional extra coverage that’s easy to customize
- Cheap rates
- Quick and easy online quote
Cons
- Everything is done online
- Reports of them upping rates
- Not a thorough quote process
Provinces
BC, AB, ON, QC, NS, NB, PE, MB, SK, NL
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Customize your coverage options + Easily lock in low insurance premiums online.
Special Features
See Issuer for Details
Personal Liability Coverage
Loss Of Rental Income Coverage
Rented Dwelling Coverage
Detatched Structures
Sewer Backup
Overland Water
Landlord's Belongings
Earthquake
Water Damage
Appliances
Landlord Legal Protection
Sonnet is another online-only insurance company, which again could help you save on premiums. Like Square One, Sonnet Landlord Insurance provides a quick, easy online application process, low rates, and customizable options.
Among other types, Loss of Rental Income is standard with Sonnet Landlord Insurance, which means you'll have coverage and peace of mind if your tenants are forced out due to property damage, etc. And with a 4.4-star rating from Trustpilot, it seems like Sonnet lives up to its claims of excellent customer service.
Landlords in British Columbia, Alberta, Ontario, Quebec, New Brunswick, Nova Scotia, and Prince Edward Island can take advantage of Sonnet Landlord Insurance.
Allstate Landlord Insurance
Personal Liability Coverage
Loss Of Rental Income Coverage
Landlord's Belongings
Landlord Legal Protection
A rental property can be a valuable investment, but there are always risks involved. Allstate Landlord Insurance – also known as Allstate Rental Insurance – will help protect you against personal liability, and your rental property against damage. Allstate Landlord Insurance includes a few basic forms of insurance, including dwelling protection and coverage for detached private structures. Further optional protections are also available.
Pros
Cons
Provinces
AB, ON, QC, NB, NS
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Get basic coverage + Add optional water damage or appliances protection.
Special Features
See Issuer for Details
Personal Liability Coverage
Loss Of Rental Income Coverage
Rented Dwelling Coverage
Detatched Structures
Sewer Backup
Overland Water
Landlord's Belongings
Earthquake
Water Damage
Appliances
Landlord Legal Protection
If you prefer a traditional insurance company, take a look at Allstate Landlord Insurance.
Their rates might be higher than the others listed here, but they're a full-service insurance company with in-person service. If you're in a stressful situation, being able to see someone face-to-face to figure it out could be a huge help.
One unique add-on they offer is appliance coverage, which pays out if the appliances in your rental stop working.
What is landlord insurance?
Landlord insurance is insurance purchased by the owner of a rental property. It typically covers the building/structure itself as well as your personal liability, with some extra add-ons available.
It may not be mandatory by law, but it's generally recommended that landlords at least consider insurance, since there's a lot of money on the line. If you have a mortgage on the building or the condo unit, your lender may require that you're insured (similar to home insurance).
What does landlord insurance cover?
Here's a look at the typical coverage included in landlord insurance:
| Coverage type | What it covers |
|---|---|
| Property Damage | Damage to the property itself – floors, walls, attached fixtures |
| Liability | Claims for injury or damage if caused by your ownership of the property |
| Rental Income | Lost rental income, if your property is not livable because of damage |
Here are examples of some add-on options for landlord insurance, depending on your insurance company and policy:
| Coverage type | What it covers |
|---|---|
| Landlord’s Belongings | Equipment, appliances, and furnishings owned by the landlord and kept in the rental property. |
| Water Damage Protection | Damage caused by water such as flooding, burst pipes, and sewer backup. |
| Additional Construction Expense | Covers the cost of bringing a property up to code following damages |
| Non-payment of Rent | Covers landlords if tenants refuse to pay their rent |
| Earthquake Protection | If your property sits in an earthquake-prone area, this insurance covers you for damage from such an event |
| Short-term Rental Coverage | Protection for any damage or accidents incurred while the property is occupied by short-term tenants/guests |
What does landlord insurance NOT cover?
Here's a list of common landlord insurance exclusions:
- Maintenance and repairs for general wear and tear
- Damage caused by tenants
- Damage caused by termites, rodents, and insects
- Tenant's personal belongings
- Buildings under construction (get "Builder’s Risk" insurance for this)
Landlord insurance vs. homeowners insurance
Landlord insurance and homeowners insurance are very similar, but not the same.
Homeowner’s insurance covers:
- A home’s physical structure
- Personal property
- Liability
- Owner’s living expenses if the home is damaged by fire, weather, etc.
Landlord insurance covers:
- A rental property’s physical structure
- Rental income
- Third-party liability
That said, you can sometimes opt for add-ons that cover any equipment you may keep at the property.
Another difference – landlord insurance does not include Living Expenses coverage, which covers the owner's living expenses in case the residence is unlivable. Since landlords don't live in the rental property they insure, this coverage type isn't necessary.
Other than that, coverage for property damage and personal liability is largely the same between the two types of insurance.
What factors go into the price of landlord insurance?
Like any insurance, the cost is based mainly on the insurer’s judgement of the risk and the amount they'd likely have to pay in the event of a claim.
Some considerations are:
- Location: This portion usually includes the claims history of the area the property is in, and if it's close to fire hydrants and a fire station
- Age and type of construction: Older homes and those built of wood typically have more issues – upgrading the electrical system, plumbing, roof, etc., can help
- Monitoring devices: Home alarm systems can reduce perceived risk
- Risk factors: Can include smoking, pets, or having a pool
- Amount of insurance required: Typically based on estimated replacement costs
How to get cheap landlord insurance
These are a few ideas for how you can save a few dollars on your landlord insurance:
- Multi-policy discount: If you insure more than one rental property with the same insurance company, it may offer a sort of bundle discount
- Loyalty discounts: If you've had insurance with the company for a while, you might be rewarded
- Claims-free discount: Offered to landlords who've had insurance for a while without making any claims
- Mortgage-free discount: A few dollars can be shaved off for those who don’t have a mortgage on the property
- Lump-sum discount: If you pay for a full year upfront, the cost can be lower than if you pay monthly
- Increased deductible: Taking on more of the risk yourself sometimes means lower premiums
You can always ask your insurer if there are other ways to lower your cost of insurance.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
FAQ
Do you need landlord insurance?
Though you're not legally required to get landlord insurance, regular home insurance won't cover anything related to renting. And if you have a mortgage on the property, it's likely the lender will require insurance as extra security.
What does landlord insurance cover?
A typical landlord insurance policy covers damage to the building that may result from theft, damage, disaster, etc. It also provides liability coverage in the event that damage or injury occurs to people or items on your property.
What doesn't landlord insurance cover?
The main thing that landlord insurance doesn't cover is damage or loss of the tenant's belongings – this is covered by the renter's tenant insurance instead. Many landlords make tenant insurance a requirement for all of their renters.
What's the difference between landlord insurance vs. homeowners insurance?
Though similar, the main difference between the two types of insurance is that, as a landlord, you don't need coverage for living expenses or personal belongings. Instead, you're mostly focused on the building structure itself.
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