8) Insurance

Protect Your Investment

Every lender requires proof that you have obtained home insurance before finalizing your financing arrangements and allowing you to close. A Landlord Insurance policy covers the physical structure of the property and landlord-specific risks such as loss of rental income, tenant damage, and third-party liability

It's advisable to have at least $2 million in general liability coverage given recent inflation and today’s replacement costs.

For a typical landlord insurance policy in Calgary, expect annual payments around:

• Condo: $650 - $1,000 (I’m paying about $700 for each of my Calgary condos)

• Townhome (Condo): $800 - $1,200

• Townhome (Freehold): $1,000 - $2,000

• Detached & Semis: $1,200 - $2,500+

First Loss Payable

You are typically required to provide a copy of your Condominium Insurance for contents, liability and betterments/improvements showing First Loss Payable to your mortgage provider. Your lawyer will tell you what is required and have your insurance provider add this to your policy.

Vacant Condo Insurance Rider

Most insurance policies in Alberta require that your unit is not vacant for more than 30 days. This means that if your tenancy takes longer than this to start from your closing date, you should get an extra Vacant Condo Insurance Rider to extend your home insurance coverage.

Insurance Broker Referral

Consult with an experienced insurance broker for advice tailored to your specific situation as there are many factors that can impact pricing and coverage.
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