Lease and Rental Management
Rental property insurance claims differ from claims on owner-occupied homes in several ways. Understanding these differences helps landlords navigate the process effectively and receive appropriate compensation.
Notify your insurer promptly after any incident. Most policies require prompt notification as a condition of coverage. Delayed notification may affect your claim, particularly for events with ongoing damage (water leaks, vandalism).
Ontario Tenancy Law
Document the loss thoroughly before any cleanup or repairs. Photograph the damage from multiple angles, create an inventory of damaged items with estimated values, and preserve any evidence of cause (pipes, electrical components).
Tenant personal property is not covered by landlord insurance. Landlord policies cover the building structure and landlord-owned appliances and fixtures. Tenants' furniture, clothing, and personal items are their responsibility under their own tenant insurance.
Protecting Landlord Rights
Loss of rental income coverage applies when the unit is uninhabitable due to a covered event. The claim amount is based on the actual rent collected — have documentation of rental income available for the adjuster.
Adjuster cooperation: the insurance company will send an adjuster to assess the loss. Be factual and thorough in your description of the incident. Provide all requested documentation promptly. Avoid speculating about cause if you're not certain.
Restoration versus replacement: insurers may offer cash settlement for the loss value or restoration through approved contractors. Understand your policy's approach and the difference between replacement cost and actual cash value before finalizing any settlement.
Dispute resolution: if you disagree with the adjuster's assessment, you have rights. Your policy includes an appraisal or arbitration provision for disputes about loss amounts. Consulting with a public adjuster or insurance lawyer may be warranted for large claims.