Renting out a suite or a carriage home changes what your insurance needs to cover. Here is the general picture, so you know what questions to bring to a broker.
Written by Serge, Founder, Kelowna Carriage Homes
A typical homeowner policy is priced and written for owner-occupied use. Once part of the property is rented to a tenant, that use generally falls outside a standard policy’s terms, and an insurer can decline a claim connected to the rented space if it wasn’t disclosed (landlord insurance overview).
Dwelling protection for the structure itself, landlord liability for injury or damage claims connected to the rental, loss-of-rental-income coverage if a covered event makes the unit temporarily uninhabitable, and coverage for anything the owner supplies in the unit, such as appliances or window coverings, are the standard components (landlord insurance in Canada).
A tenant’s own belongings are not covered under the owner’s policy. Most insurers expect the tenant to carry separate tenant’s or renter’s contents insurance, and many landlords make this a lease condition even though it isn’t a legal requirement everywhere.
Insuring a legal secondary suite inside an owner-occupied house is usually an endorsement added to the existing homeowner policy. Insuring a fully detached carriage home can sometimes need a separate landlord policy or a multi-unit dwelling form, depending on the insurer, since it is a second structure on the same title.
Published Canadian estimates put the added premium for a secondary-suite endorsement in a modest range, commonly cited around $150 to $400 a year (landlord insurance cost estimates). The number for any specific property depends on the insurer, location, and coverage limits chosen; a broker quote for that property is the only reliable figure.
Notify your insurer before the unit is occupied, not after. Confirm your mortgage’s occupancy and use clauses don’t conflict with renting part of the property. Keep your building permit and final inspection documentation on file, since an unpermitted unit can complicate a claim.
Builder’s risk, or course-of-construction, coverage during the build itself is typically the contractor’s responsibility under a fixed-price contract. Ask a builder to confirm this in writing rather than assuming it’s included, and ask for proof of their own liability coverage before construction starts.
We are not an insurance broker and don’t sell or recommend a specific policy or coverage amount for a project. The right approach is a conversation with a licensed broker who can quote a specific property once the unit is built, using the permit and inspection documents provided at handover. Licensed and insured; documentation available on request.
Budget for a modest ongoing endorsement cost, not a large one, but don’t skip the conversation with an insurer. It is a small step that closes a real gap in coverage.
See taxes & insurance for how this interacts with your property tax assessment.
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Costs, timelines, rents, and incentive amounts on this page are estimates from the sources cited, current as of September 2026. Each is confirmed in writing in your free feasibility study. Licensed and insured; documentation available on request.