Tag: Insurance Costs

For a lot of Laurentides plex owners, insurance is the expense that jumps the most at renewal. A duplex in Saint-Jérôme, a triplex near downtown Sainte-Agathe-des-Monts, a rented bungalow in Mirabel: each gets a very different price, and two quotes for the same building can be far apart.

This guide explains what landlord insurance costs in Quebec based on the figures we could source, why premiums vary so much, what’s specific to plexes, how to lower your premium without losing protection, and how premiums are treated for tax purposes. For what the coverage includes, read our guide on landlord insurance in Quebec.

Key takeaways

• KBD Insurance, a Canadian broker, says landlord insurance in Quebec can range from $1,300 to $5,000 per year. Your own price may fall outside that range.
• The biggest cost drivers are location, building value and construction, number of units, claims history and the deductible.
• Living in one of the units versus renting out the whole building changes the type of policy and the price.
• Higher deductibles, upkeep, security devices and bundling can lower premiums.
• The CRA lets you deduct the insurance premium for your rental property, but only the portion that applies to the current year.

Landlord insurance cost in Quebec: what we could source

Few insurers publish landlord insurance prices, because every building is rated individually. The one Quebec-specific figure we found comes from KBD Insurance, which states that “the cost of landlord insurance in Quebec can range anywhere from $1,300 and $5,000 per year.” The page doesn’t say what size of building, coverage limits or deductibles that range assumes, so treat it as a rough order of magnitude, not a quote.

We didn’t find a reliable source for average prices per unit, per duplex or per triplex, so we don’t publish any. The only way to know your price is to request quotes for identical coverage. Our guide on how to shop for home insurance in the Laurentides explains how to compare offers line by line.

What affects the cost of landlord insurance?

KBD and Hardbacon’s guide to rental building insurance list similar rating factors. Here’s how they translate for a Laurentides rental property.

Plex specifics: why duplexes and triplexes price differently

Plexes (plex is the Quebec shorthand for a duplex, triplex or quadruplex) are a large share of the rental stock in older Laurentides towns, and they come with particular questions on a quote.

Owner-occupant vs non-occupant

If you live in one unit, your policy combines your own home coverage with landlord coverage for the rented units. If you live elsewhere, you need a non-occupant policy (assurance propriétaire non occupant). Insurers price these differently, partly because an owner on site tends to spot leaks and problems sooner.

Basement units

A rented basement raises the stakes for sewer backup and ground water. CAA-Québec notes that sewer backup is only covered with a specific endorsement (the avenant refoulement d’égout) and recommends a backwater valve (clapet antiretour). Some insurers may ask whether one is installed. See our guide to sewer backup coverage in Quebec.

Older buildings and systems

Many plexes in Saint-Jérôme or Saint-Eustache date back decades. Insurers commonly ask about the age of the roof, electrical panel and wiring, plumbing, oil tank and heating system. Wood stoves in a rental unit can also lead to extra questions. Our article on insuring an older home in Quebec covers what to prepare.

Vacancy and turnover

Units sitting empty after July 1 or during renovations can trigger vacancy conditions in your policy. These don’t usually raise the price directly, but they can reduce coverage if you don’t notify your insurer.

Deductibles: how much should a landlord choose?

Hardbacon notes that raising your deductible (franchise) can lower your premium. The trade-off is simple: you pay more yourself when something happens.

• Choose a deductible you could pay tomorrow without borrowing, ideally from a building reserve fund.
• Check special deductibles: water damage and sewer backup often have their own, higher deductible.
• Remember the tenant side: a small water leak may cost less than your deductible, so who’s responsible and whether the tenant’s liability insurer pays becomes important.

How to lower your landlord insurance premium

1. Compare quotes for identical coverage from at least one broker and one direct insurer. See broker vs agent vs direct insurer.
2. Raise the deductible if you have the cash reserve.
3. Bundle your own home or auto with the rental property, where available.
4. Keep the building claim-free: handle small repairs yourself rather than filing tiny claims, if your policy and budget allow.
5. Maintain and document: roof, gutters, water heaters, washing machine hoses, exterior stairs. Keep receipts and photos.
6. Install protection devices: monitored alarms, smoke and CO detectors, water leak sensors and a backwater valve.
7. Screen tenants and require tenant insurance: Hardbacon points out that careful tenant selection can reduce damage and liability claims. A lease clause requiring tenant liability insurance, explained in our guide to landlord vs tenant insurance, also gives your insurer someone to recover from after a tenant-caused loss.
8. Declare everything accurately: unit count, basement unit, short-term rentals. A cheaper premium based on wrong information can lead to a refused claim.

Don’t cut the coverage you most need to save a few dollars. In a plex, building, loss of rents, liability and sewer backup are usually the core.

Is landlord insurance tax-deductible?

Generally, yes, for the rental part of the property. The Canada Revenue Agency’s page on rental expenses you can deduct (line 8690, Insurance) says you can deduct the premium you pay in the current year to insure your rental property. If the policy covers more than one year, you deduct only the part that applies to the current year and the rest in the years it relates to. The CRA’s example: someone who prepays a three-year policy deducts $700 in the current year and $700 in each of the next two years.

On the Quebec side, Revenu Québec explains that expenses incurred during the year to earn rental income can be deducted if they’re current expenses, while capital expenditures aren’t deductible in the year they’re incurred. Revenu Québec also has specific rules for changing the use of a property, such as starting to rent out a home you lived in.

If you live in one unit of your plex, only the portion related to the rented units is a rental expense. The CRA’s rental income guide (T4036) explains how to handle expenses for a property you partly occupy. An accountant can confirm how to split the premium for your situation.

Frequently asked questions

How much is landlord insurance in Quebec?

KBD Insurance says landlord insurance in Quebec can range from about $1,300 to $5,000 per year. Your price depends on the building, its location, the number of units, your claims history, the deductible and the coverages you choose.

Is landlord insurance more expensive than home insurance?

A rental property is usually rated differently from an owner-occupied home because of the added tenants, units and loss of rents coverage. Compare quotes for your exact property to see the difference.

Why is insurance so expensive for my triplex?

More units means more kitchens, plumbing and occupants, so more potential claims. The age of the building, its systems, its location and any past water or fire claims also weigh heavily.

Can I deduct landlord insurance from my rental income?

Yes. The CRA allows you to deduct the insurance premium for your rental property for the current year. For multi-year policies, you deduct only the portion for the current year.

Does a higher deductible lower my landlord insurance?

Usually, yes. A higher deductible generally reduces the premium, but you pay more out of pocket for each claim. Check whether water damage has a separate deductible.

Does requiring tenant insurance lower my premium?

It doesn’t always change the price directly, but it helps protect you, since a tenant’s liability insurer can pay for damage the tenant causes. Ask your insurer whether it affects your rate.

Have a question we didn’t answer? Contact us.

Sources: KBD Insurance: landlord insurance, Hardbacon: assurance immeuble locatif, Canada Revenue Agency: rental expenses you can deduct, Revenu Québec: rental income and expenses, CAA-Québec: dégâts d’eau et assurance

This article is for general information only and is not insurance advice. Laurentides Insurance Guide does not sell insurance. Always confirm with a licensed broker or your insurer.

In the Laurentides, a lot of people become landlords almost by accident. You buy a duplex on a quiet street in Saint-Jérôme and live upstairs, you keep your first condo in Blainville when you move in with your partner, or you finish the basement of your Mirabel bungalow and rent it out to help with the mortgage. In each case, your regular home insurance may no longer fit the way the property is actually used.

This guide explains how landlord insurance works in Quebec, the difference between owner-occupied and non-occupant policies, what the main coverages do, what you can ask of your tenants, and the vacancy and short-term rental conditions that cause the most surprises at claim time.

Key takeaways

• If you rent out all or part of a property, tell your insurer: a standard owner-occupied home policy may not reflect the rented units.
• Owner-occupied plex policies and non-occupant landlord policies are priced and worded differently.
• The core coverages are the building, loss of rental income and civil liability.
• Your policy does not protect your tenants’ furniture or their liability.
• You can require tenant insurance through a clear lease clause accepted at signing.
• Vacancy clauses and short-term rentals (Airbnb-type) need to be declared and checked.

Owner-occupied plex vs non-occupant landlord policies

In Quebec, a duplex, triplex or quadruplex is often simply called a “plex.” Insurers look first at who lives in the building.

You live in one of the units

If you occupy one unit and rent the others, many insurers offer an owner-occupant policy adapted to a small rental building. It generally combines what a homeowner needs (your own contents, your own living expenses if you have to move out) with landlord coverages for the rented units, such as the building and loss of rents. Being on site also means problems like a leaking pipe tend to be noticed quickly.

You don’t live in the building

If you rent out a whole house, a condo or every unit of a plex, you generally need a non-occupant or rental property policy (in French, assurance propriétaire non occupant). As Hardbacon’s overview of rental building insurance puts it, regular home insurance is designed for residences occupied by their owner, and it generally doesn’t cover tenants’ personal property. A non-occupant policy focuses on the building, the rents and your liability as owner.

Condo owners who rent their unit should also read our guide on condo insurance in Quebec, since the syndicat de copropriété insures the building and the rules on liability and deductibles affect landlords too.

What does landlord insurance cover?

The building

Building coverage pays to repair or rebuild the structure after an insured loss such as fire, wind, hail or vandalism, depending on the wording. Insure for the cost to rebuild, not the market value or municipal assessment. In older Laurentides plexes, rebuilding to current code can cost more than people expect.

Loss of rental income

If a fire or water loss makes a unit uninhabitable, the tenant stops paying rent while repairs are done. Loss of rents coverage compensates the owner for that lost income after a covered event. Check how long it pays, whether there’s a maximum amount, and whether it applies to every unit.

Civil liability as owner

Liability coverage protects you if a tenant, a visitor or a passer-by is injured and you’re held responsible, for example after a fall on an icy outdoor staircase, a classic winter claim in Saint-Jérôme and Sainte-Agathe-des-Monts. Snow removal, lighting and railings on exterior stairs are worth a close look every fall. See also our article on roof snow load and winter insurance.

Optional coverages

Sewer backup, overland water and earthquake are usually optional. In a plex with a rented basement, sewer backup coverage is especially important; see our guide to sewer backup coverage in Quebec. You may also want coverage for appliances you supply (fridge, stove, washer) and for bylaw upgrades after a loss.

What your policy does not cover: the tenant’s side

Your landlord policy protects your property and your liability. It doesn’t cover your tenants’ belongings, their additional living expenses after a fire or their liability if they cause damage. If a tenant’s forgotten pot sets fire to the kitchen, your insurer may pay to repair the building and then try to recover the amount from the tenant (subrogation). A tenant with civil liability coverage is far better placed to respond.

That’s why many Quebec landlords now ask tenants to carry their own policy. Our guide on tenant insurance in Quebec explains it from the renter’s point of view.

Can a landlord require tenant insurance in Quebec?

No Quebec law makes tenant insurance (assurance locataire) mandatory. However, the lease is a contract. Promutuel Assurance, in its guide for landlords, explains that you can include a clause requiring the tenant to have insurance and to provide proof, as long as it’s clearly written and accepted when the lease is signed. Adding it in the middle of a lease could be considered unfair if the tenant disputes it, and changes at renewal must follow the notice rules for lease modifications.

Practical points:

1. Write the clause clearly in the lease (or its schedule), stating that civil liability coverage is required and, if you wish, a minimum amount.
2. Ask for proof before the keys are handed over, and again at each renewal.
3. Don’t confuse insurance with a deposit: Quebec rules don’t allow landlords to demand a damage or security deposit, so insurance is often the main protection against tenant-caused damage.
4. Keep records of proofs received. If a dispute arises over the lease, the Tribunal administratif du logement (TAL) is the body that hears it.

When in doubt about wording, consider legal advice or the TAL’s information resources before using a clause.

Vacancy clauses: the trap between two tenants

Most property policies contain conditions about buildings or units that are empty. Wording varies, but a common rule in Canadian policies is that a dwelling left vacant for more than 30 consecutive days may lose some or all of its coverage unless the insurer has been notified. Western Financial Group’s explanation of the 30-day vacancy rule distinguishes an unoccupied home (someone intends to return, furniture and utilities are in place) from a vacant one (no one lives there, often emptied), and notes that freezing-related water damage is often excluded when a home is left unheated or unchecked.

For a landlord, this matters after a tenant leaves on July 1, during long renovations, or while a unit is on the market. To stay protected:

• Read the vacancy and unoccupancy conditions in your own policy.
• Tell your insurer before a unit or the building stays empty longer than the policy allows.
• Keep the heat on in winter, and have the unit visited regularly.
• Ask whether renovations need to be declared, especially major work.

Short-term rentals are a different risk

Renting a chalet in Mont-Tremblant or Saint-Sauveur by the night or the week is not the same as a residential lease. Many standard and landlord policies exclude or limit coverage for commercial short-term rental activity unless it’s declared, and Quebec has registration rules for tourist accommodation. Hardbacon also notes that short-term rental units may need specific coverage. Read our detailed guide on short-term rental chalet insurance in Quebec before listing a property.

What affects the cost of landlord insurance?

We don’t publish prices because they vary widely. Insurers commonly look at:

• Location, rebuilding cost and construction of the building.
• Number of units and whether you live on site.
• Age and condition of the roof, wiring, plumbing and heating (wood stoves included).
• Claims history and the deductible you choose.
• Optional coverages such as sewer backup.
• Upkeep and how you screen and manage tenants.

To compare offers properly, request quotes for the same coverages and limits. Our guide on brokers vs agents vs direct insurers explains how each channel works, and you can verify any representative on the AMF registers.

Frequently asked questions

Do I need landlord insurance if I rent out my basement?

You need to declare the rental to your insurer. Depending on the insurer, it may be handled within your home policy or require a policy designed for a rental dwelling. Not declaring it could create problems at claim time.

Does landlord insurance cover my tenant’s belongings?

No. It covers the building, your property and your liability as owner. Tenants need their own tenant insurance for their contents and their liability.

Can I require my tenant to have insurance in Quebec?

Yes, through a clear clause in the lease that the tenant accepts at signing. Adding it during an existing lease can be challenged. You can ask for proof of insurance.

Does landlord insurance cover unpaid rent?

Generally, loss of rents coverage applies when a unit becomes uninhabitable after an insured loss, such as a fire. Rent a tenant simply refuses to pay is a different matter, usually handled through the TAL.

What happens if my rental unit is empty for several weeks?

Many policies have vacancy conditions, often around 30 consecutive days, after which coverage may be limited. Notify your insurer and keep the unit heated and checked.

Is Airbnb covered by my landlord policy?

Often not unless it’s declared. Short-term rentals usually require a specific policy or endorsement. Check with your insurer before your first booking.

Have a question we didn’t answer? Contact us.

Sources: Promutuel Assurance, Hardbacon, Western Financial Group

This article is for general information only and is not insurance advice. Laurentides Insurance Guide does not sell insurance. Always confirm with a licensed broker or your insurer.