Landlord insurance gap check
Learn what a typical landlord policy covers, which gaps are often missed, and what to ask a licensed broker. This page does not recommend a policy or an insurer.
What a typical landlord policy covers
The building and fixtures
The structure and built-in fixtures, such as kitchen cabinets and furnace, if they are damaged by a covered event like fire. Ask: Is the building insured at replacement cost, and does the policy pay the full cost to rebuild?
Loss of rental income
Rent you lose while the unit cannot be rented after a covered loss. Ask: What is the waiting period, how long does it pay, and is there a total limit?
Liability
Costs if a tenant, visitor or passer-by is hurt or has property damaged because of your building. Ask: What is my liability limit, and do I need more coverage for a larger building or more units?
Water damage and sewer back-up
Damage from a burst pipe or water that backs up through drains or sewers. Sewer back-up is often an add-on or has a lower limit. Ask: Is sewer back-up included, and is there a sub-limit?
Deductible
The amount you pay toward each claim before the insurer pays. Ask: What is my deductible for each type of claim, and does it change for water or liability claims?
Gaps that are often missed
- Vacancy: Many policies limit cover when a unit is empty for a set number of days. Ask how many days, and what changes when the unit is between tenants.
- Tenant-caused damage: Ask whether damage by a tenant, a guest or a tenant's pet is covered, and whether the tenant's own insurance is expected to respond first.
- Flood and overland water: This is often a separate policy or an add-on, not part of the standard policy.
- Rental use: Confirm the policy is written for a rental unit. A homeowner policy may not cover rented property.
- Short-term rentals: Many policies exclude short-term stays. Check the wording before you rent by the night.
- Condo units: The condominium corporation's policy usually covers common areas and sometimes the building. Ask what the condominium corporation carries and what it expects owners to insure.
- Tenant's belongings: Your policy does not cover tenants' belongings. Your lease can ask tenants to carry their own tenant insurance.
Check your lease and mortgage
Ask whether your lender requires particular coverage, and whether the lease requires tenants to carry insurance. Keep copies of the policy and any proof you give tenants.
Self-check
Tick what you have already confirmed. The ticks are for your own reference only and are not saved or sent.
Unticked items mean there is something to ask about before you renew or change your policy.
Next: prepare your rent increase
If you are raising rent, the N1 checklist covers the 12-month rule, the guideline, the form, the serve-by date and what to keep.
N1 rent increase checklist