Smart Money Podcast
Once you've found a property you like, you will need property or home insurance to protect your asset against accidents and other unforeseen events. The type of insurance depends on whether you will live there yourself, whether you will rent it out, and whether the tenants will have their own insurance. Whatever the case, you will need property insurance: it is the best way to protect your asset, and often a requirement of your lender.
FindOffMarket finds off-market and wholesale properties across Canada and the US, so you can see new deals before they're gone.
Insurance will typically cover you in the case of:
- Theft
- Fire
- Liability
- Contents (depending on the policy)
- Rental income (depending on the policy)
What is property insurance?
Property insurance protects a property you own but typically don't live in. It differs slightly from a homeowners policy, which is what people usually get for the home they live in.
How is it different from homeowners insurance?
Homeowners insurance usually covers more, including things you don't need when you don't live or store anything at the property. Landlord or property insurance can also include a rental income clause, which covers lost rent under the terms of the policy.
How much does property insurance cost?
Property insurance is usually affordable. The premium, the amount you pay each month or each year, depends on the policy: the limit, the deductible and any add-ons. As a rule of thumb, for a fairly basic policy expect to pay around 0.25% of the property's value per year.
Where do I find the best investment properties?
You can work with a real estate agent and look at listed properties. Those usually draw many competing offers, and the agents' commission adds to the cost.
You can also join the mailing lists of individual wholesalers, but then the deals are spread across many inboxes and you have to keep checking all of them.
Or use FindOffMarket: we bring off-market and wholesale listings from across Canada and the US into one place, check that they're still up, and tag each one with the investment strategies it fits. Start with: