What Type of Insurance Should You Have for Rental Property in Manitoba?

November 5, 2021

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Dreaming of having a rental home or owning multiple properties in MB? Then you’ll need to know a thing or two about saving, investing, and protecting the assets you acquire! This post covers everything you need to know about rental property insurance, landlord insurance, tenant’s insurance, and why standard home insurance isn’t enough in Manitoba. Read the post, secure your coverage, and bring in that rental income with total confidence!

Standard Home Insurance (And Why It’s Not Enough!)

When it comes to your primary residence, standard home insurance is key. It covers your physical house or condo, any additional buildings on your property, and all the personal belongings you keep in the house. And, they offer liability coverage for you, the homeowner. But, for a rental property, the standard homeowner policies you’re used to will fall flat because they can’t cover the renters residing in your home. That’s why the moment that you start renting your property, you need Rental Property Insurance!

Related: How much home insurance do Manitobans need?

All About Rental Property Insurance

Where standard home insurance covers your home and belongings, Rental Property Insurance (also known as Landlord Insurance or Revenue Property Insurance) goes further, adding on liability coverage in case your tenants or any visitors are injured on the property, as well as any loss for rental income.

Most rental properties are covered under what’s called a “Named Peril” basis. This means you’re only covered for the risks—or perils—that are explicitly listed on your policy. Often, these are things like fire, lightning, and hail. Insurance companies do this to protect themselves because with unknown people occupying the home, they’re taking on a higher level of risk.

Rental Property Insurance: What’s Covered?

Each rental property policy is different, so you’ll want to make sure the coverage you get reflects your specific situation. Before you pick a plan, take the time to talk to one of our Insurance Consultants about what’s important to you. They can give you the best answers on the coverage you need!

That said, generally speaking, your Rental Property Insurance will cover:

  • The home itself
  • Any additional buildings on the property
  • Your (the homeowner’s) possessions
  • Liability (in case the tenants or any visitors are injured on the property)
  • Loss (for lost rental income)

Rental Property Insurance: What’s Not Covered?

Unfortunately, a lot of things are not covered by a standard Rental Property Policy. Two main types of claims that are not included are:

  • Your tenants’ possessions
  • Any tenant-caused damage to your property


(For tenant possessions and liability, your tenants will need to
secure their own renter’s insurance.)

As we mentioned above, most rental insurance policies are covered on a “Named Perils” basis, meaning only very specific types of claims will be allowed. But, there are some providers that offer more comprehensive policies.

Comprehensive Rental Property Coverage covers your home and your belongings on an “All Perils” basis. This means the insurance company will cover most damage to your home and your personal property—as long as the “peril” that caused it isn’t explicitly listed as an exclusion on your policy. This is a great option, especially since renting out your property is riskier than living in it yourself! But it’s important to note that this increased coverage comes at an increased cost.

Additional Rental Property Coverage

We recommend looking into your policy to find out if it automatically includes coverage for any additional buildings on your property, the contents of all your buildings (if required), and liability. These are important coverages to have, but they’re not included under every policy automatically. If you need them, you may have to add them separately, at an additional premium.

Other additional coverages to consider are:


Related: Home Insurance & Fallen Trees

The Cost of Rental Property Insurance

The specifics of rental insurance are different for each person, so the cost of Rental Property Insurance can vary.  But, it’s worth noting that your Rental Property Insurance will likely cost more than your standard home insurance policy.

Considerations For Owners of Multiple Properties

There are no specific considerations for acquiring rental insurance for all your properties, but once you have a certain number of rental properties, you may need to move your policy to a specialty, commercial market.

Long-Term vs. Short-Term Leasing

Most landlords rent their properties out on a year-to-year basis. And, many insurance companies actually require that you rent your property out on a yearly basis, regardless of whether you take month-to-month or yearly lease payments. But, there are options available for month-to-month rentals, too.

If you’re looking to book short-term rentals, speak with one of our Insurance Consultants and explain your situation. (Just keep in mind that you’ll be looking at different requirements from your insurance provider and that many insurance providers won’t cover short-term rentals at all.)

Considerations for Home Shares, AirBnBs & VRBO Rentals

Short-term rentals like Home Share, Airbnb, Home Away, and VRBO are becoming more and more popular, but standard home and rental insurance policies don’t cover damage or injury resulting from short-term rental activity.

Whether you rent your whole house or just a portion of it, it’s best you talk to one of our Insurance Consultants to make sure you have the correct coverage in place!

Insurance for Tenants

Tenant’s insurance (also known as renter’s insurance) covers your tenant’s belongings—the contents of your rental property—and provides them with liability coverage, in case they’re responsible for any damage to your rental home.

Most insurance companies don’t require tenant’s insurance in order to cover you, the landlord, but it’s a very good idea to request your tenant’s purchase and show proof of their renter’s insurance.

Can You “Force” Your Tenants To Get Insurance?

No, you can’t force your tenants to purchase their own insurance coverage. But you can make it a rental requirement so that without it, they can’t rent from you.

Related: The Ultimate Guide to Tenant’s Insurance in Manitoba

Rental Property Sitting Empty? Get A Vacancy Permit!

A property becomes vacant the moment all occupants have moved out (and are not returning). It’s also considered vacant before new occupants move in. If your rental property sits vacant for more than 30 days, you’ll need to add a vacancy permit to your policy, to make sure the home remains insured throughout the vacancy. 

A vacancy permit is an endorsement from the insurance company that reduces coverages to your policy for a certain length of time. To issue one, most companies will require that you complete a vacancy questionnaire, and provide photos of the front and the back of your home. If your home is vacant and you don’t have a vacancy permit on your insurance policy, your home may be completely uninsured—meaning that any claim that arises could be denied.

Worth noting: A vacancy permit could cost you twice as much (if not more!) than your current insurance policy.

Secure Your Rental Property Insurance

Every rental situation is different, and the best insurance for you will depend on your individual circumstances. To find your best insurance solution, talk to one of our Insurance Consultants! We’ll help you sort through the noise and put the perfect coverage in place.