Whether you’re renting out a basement suite, a condo, or a second home, becoming a landlord in British Columbia comes with financial opportunity—and added responsibility. Ordinary home insurance doesn’t fully cover the risks that come with renting out property, which is why landlords need tailored coverage that accounts for tenants, liability, and rental income.
If you’re renting out any part of your home, speak with a Park Insurance broker to ensure your coverage fits your new role as a landlord.
Why Landlord Insurance is Different from Homeowner Insurance
Many first-time landlords assume their regular home insurance is enough—but that’s rarely the case. When a tenant is involved, the risk profile of your property changes. You’re now responsible not just for the structure, but also for the safety of someone else living on the premises.
Unlike a homeowner policy, landlord insurance accounts for tenant-related risks and income protection. It helps you manage the financial impact of damages caused by tenants, legal claims, and lost rental revenue.
Key Coverages Every BC Landlord Should Consider
When you’re renting out a property—even just a basement suite or a condo you’re no longer living in—your responsibilities shift, and so do your insurance needs. As a landlord, you’re not just protecting a structure; you’re also safeguarding your financial stability and managing liability risks that come with having tenants. These aren’t theoretical concerns—accidents, property damage, and legal disputes happen more often than most new landlords expect. That’s why it’s important to be familiar with the core components of a strong landlord insurance policy.
Here are the coverages that every individual landlord in BC should consider essential:
- Landlord Property Insurance
Covers damage to the physical structure of your rental property due to fire, water, vandalism, or other insured events. - Landlord Liability Insurance
Protects you if a tenant or visitor is injured on your property and holds you legally responsible. This could include slip-and-falls, faulty stairs, or structural issues. - Loss of Rental Income Coverage
Compensates you for lost rent if your rental unit becomes uninhabitable due to a covered loss, like a fire or major plumbing issue. - Contents Coverage for Landlord-Owned Items
Covers appliances, furnishings, or equipment you’ve supplied in the unit (note: this doesn’t cover tenant belongings).
Before you finalize your policy, it’s worth considering a few optional coverages that can offer added peace of mind and protection depending on your location and circumstances.
Optional Add-Ons and Endorsements
Depending on the property and its location, landlords in BC may also benefit from additional coverage:
- Earthquake Insurance – Particularly important in regions like the Lower Mainland and Vancouver Island.
- Flood and Sewer Backup Coverage – Water damage can be costly and is not always included in base policies.
Protecting Yourself as a Landlord
Becoming a landlord isn’t just about earning income—it’s about managing risk. Many individual landlords in BC are surprised to learn that damage caused by tenants, or liability for accidents, may not be covered under their existing home insurance. Worse still, failing to disclose that your property is being rented out can invalidate your policy altogether.
By securing the right coverage, you protect your property, your income, and your peace of mind.
Key Takeaways
- Home insurance doesn’t fully protect rental properties—landlord insurance is essential.
- Key protections include property, liability, loss of income, and legal coverage.
- Optional endorsements like flood or earthquake protection may be critical in BC.
- Working with a broker helps you find the right balance of coverage and cost.
Renting out your property? Make sure you’re covered. Contact a Park Insurance broker today to customize a landlord insurance policy that fits your needs.
