Condo Rental Property Insurance

A condo landlord insurance policy for a rental property typically includes the following types of coverage:

• Commercial General Liability (CGL) Insurance: CGL, or general liability insurance, protects condo rental property owners from third-party bodily injury and third-party property damage claims arising from incidents and accidents in your unit. For instance, if a tenant is injured after a fall inside your unit because of uneven floor tiles, they could hold you responsible for not fixing them and seek compensation for their injuries and medical rehabilitation.

• Commercial Property Insurance: Commercial property insurance covers condo rental landlords for damages to the unit and the contents you own in it if damaged or destroyed by fire, water, a natural disaster, theft, or vandalism. It includes coverage for your rental income if, following an insurable loss like a fire, the unit is uninhabitable, and tenants can only reside in the unit once repairs are completed.

• Equipment Breakdown Insurance: Equipment breakdown insurance is designed to pay for repairing or replacing the equipment in your unit, such as the kitchen appliances and HVAC system, if they cease to function properly due to an internal mechanical or electrical issue.

There may be other types of coverage you need to include in your policy to maximize your protection, such as:

• Flood Insurance: Although commercial property insurance covers water damage in your unit caused by a burst water pipe within the walls or ceiling, many condo rental unit property policies do not automatically include protection against overland floods. Adding this type of coverage to your policy can help pay for damages to your unit due to flood waters entering the dwelling from the floor, walls, roof, windows, and doors.

• Loss Assessment Insurance: This coverage is an optional endorsement that you can add to your condo insurance policy. It helps protect you if you live in a shared community, like a condo or homeowners association (HOA), where you’re responsible for a portion of damage or loss in a common area.

• Renovations Insurance: Any non-structural renovations taking place in your condo would require a separate, temporary renovations policy if the duration of the work is longer than 30 days.

• Legal Expense Insurance: If a tenant refuses to or cannot pay rent and you want to evict them, you may face a lengthy and expensive legal battle to evict them or receive the funds you’re owed. Legal expense insurance pays for legal advice and the cost of retaining an experienced lawyer. Furthermore, legal expense insurance can cover a lawyer’s fees if you are audited by the Canada Revenue Agency (CRA) and require help appealing a decision by the CRA.

• Airbnb or VRBO Insurance: If your condo corporation’s management board permits you to do short-term rentals through a home-sharing service like Airbnb or VRBO, you will need Airbnb insurance or VRBO insurance. These policies cover accidental damages to your unit, theft, and bodily injury or property damage caused by guests or visitors during their stay. Listing your property on Airbnb or VRBO makes your residence a business property, and you must inform your Zensurance broker if you intend to do so, or your insurer could cancel your condo rental insurance policy.