How to Prepare Your Rental Property for the 2025 Insurance Market

Insurance costs for rental properties in Canada are under growing pressure. The combination of more frequent extreme weather events and sharply higher repair and replacement costs means that risk management is becoming a necessity. Rental owners who take proactive steps now can protect their income and avoid insurance surprises down the road.

Why Insurance Is Getting More Expensive

Insured losses from severe weather in Canada reached record levels in 2024, totaling more than C$8.5 billion, the highest amount ever recorded (The Home Insurance Market and Severe Weather Events in Canada, June 16 2025).

The trade group Insurance Bureau of Canada (IBC) reports that 273,000 weather‑related claims were filed in 2024—188 % above historic averages. At the same time, residential construction costs have increased dramatically: the Statistics Canada Building Construction Price Index shows a 67 % rise over the past five years. Higher replacement costs combined with more claims mean insurers are raising premiums, tightening underwriting standards, and favouring properties that can demonstrate strong risk management.

What Insurers Want to See

In this changing environment (no pun intended), insurers are looking beyond the standard policy terms. They are increasingly assessing a property owner’s proactive behaviour and maintenance record when underwriting or renewing rental property coverage. Key indicators include:

• Routine maintenance schedules and documentation. Insurers prefer properties that show regular inspections of major systems (HVAC, plumbing, roof) and clear records.
  
  
• Low claims history. Properties with fewer past claims tend to receive more favourable terms and lower premiums.
  
  
• Functional life‑safety systems. Working smoke alarms, carbon monoxide detectors, proper egress and secure windows reduce risk exposure.
  
  
• Preventive measures. Simple steps such as regular gutter cleaning, checking downspouts, verifying sump pumps and scheduling HVAC service visits demonstrate risk awareness and often influence renewal rates.
  
  

These actions signal to insurers that the owner actively manages risk, which can translate into more stable premiums or improved renewal terms.

What You Can Do Now

To position your rental property favourably in the 2025 insurance market, consider the following actions:

• Schedule annual property inspections. A January review of heating systems and drains, followed by a summer inspection of exterior and water management systems, helps catch issues early.
  
  
• Document everything in a central system. Whether you manage the property yourself or work with a professional, keep date‑stamped records of inspections, vendor work orders, receipts and tenant correspondence. This creates a paper‑trail that insurers value.
  
  
• Require tenants to carry valid tenant insurance. While this doesn’t reduce your property’s premium directly, it reduces your exposure and demonstrates to insurers that you are managing risk comprehensively.
  
  
• Review coverage and ask questions at renewal. If your property is aging or exposed to flood/wildfire risk, ask the insurer how your risk profile compares to similar properties. Use this conversation to negotiate or shop around if you’ve maintained a good claims record.
  
  

Insurance is becoming a major line item for rental property owners. At Maximum Inc. we treat insurance readiness as part of our service model. We keep track of all maintenance receipts, have an in-house maintenance team and provide regular maintenance checks. Get in touch today so you can benefit from professional property management.

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