Can you afford to replace all your belongings if your rental home or apartment is vandalised or floods? Could you cover the costs of a lawsuit if a visitor sues you for a slip and fall? Tenant insurance is relatively cheap and helps you financially if you have to submit a claim.

Tenant insurance isn’t mandatory in Ontario. However, your landlord may require you to have coverage as part of your lease agreement. This ensures there is no legal trouble between you and your landlord if something is damaged, as each of you have your own insurance.

There are a few reasons why you should have renter’s insurance in Ontario:

1. It may be required by your landlord.
2. You may not be able to afford to replace your belongings if something unexpected happens.
3. Lawsuits are expensive. If a visitor to your rental space is hurt or their stuff gets damaged or you caused unintentional damage or injury, you may get sued.
4. You want to worry less about the what ifs.

Home insurance is sometimes used as a blanket term for all types of property insurance: house, condo and renter’s insurance. Renter’s insurance, often called tenant insurance, is property insurance designed specifically for tenants. Tenant insurance provides different coverage than traditional home insurance and is usually much more affordable.

Coverage under a traditional tenant insurance policy in Ontario will depend on your decisions when you buy your renter’s insurance policy and your insurance company. A peril is a cause of damage. Below are the perils most often covered in a tenant insurance policy: 

• Fire 
• Smoke 
• Explosion 
• Lightning 
• Electrical current 
• Wind 
• Hail 
• Weight of snow (causing a roof collapse) 
• Falling object 
• Impact by vehicle or aircraft 
• Riot, vandalism, theft and other malicious acts 
• Certain types of water damage (usually caused by plumbing or appliances) 
• Sewer backup* 
• Overland water (flooding)* 
• Earthquake and landslides* 

* This coverage is an additional coverage option under your tenant insurance policy. 

There are circumstances where damages won’t be covered by your tenant insurance policy. Common scenarios not covered, include:  

• Wear and tear of unit 
• Mould 
• Damage caused by insects, vermin and animals 
• Damages caused by a property left vacant and unmonitored 
• Any damages caused by illegal activities 
• War or terrorism 
• Nuclear incidents 
• If your home is left vacant for more than 30 days in a row, you may not have any insurance protection 

If you don’t have the add-on protection for earthquakes and landslides, sewer backup or flooding, you won’t be covered if that’s the cause of damage. If you’re unsure, always ask one of our experienced brokers for advice.  

Tenant insurance won’t cover anything that isn’t yours

Your landlord’s insurance will cover the structure of the home, condo or apartment, appliances and more. For example, if you rent a furnished apartment, your renter’s insurance wouldn’t replace the furniture after a fire. However, if you rent an unfurnished apartment or supplied some of your own furniture, your tenant insurance may cover it. Exactly what’s covered will depend on your renter’s insurance policy details. It’s essential to work with one of our Ontario insurance brokers to ensure you’ve got the protection you need and understand your coverage. 

The amount of tenant insurance you’ll need in Ontario will depend on how much it costs to replace your personal items and how much protection you require. We usually recommend an all-risk or comprehensive policy with content limits of at least $30,000 and a personal liability limit of at least $1,000,000. But it’s always prudent to speak to one of our tenant liability insurance brokers in Ontario for advice.  

As experienced Ontario tenant insurance brokers, we can help you decide what coverage best fits your needs and budget. Plus, we’re here to answer any of your questions and get you the best price for the protection you need. 

Are you considered a high-risk renter in Ontario? An insurance company will label you high-risk if you have: 

• Had multiple claims 
• Been cancelled for non-payment 
• Been cancelled by an insurance company for a reason other than non-payment 

You can still get renter’s insurance even if you’re considered to be high-risk, but it may be harder to get the premium and coverage options you want.  

Renter’s insurance policies in Ontario range from approximately $200 to $500 per year, or $10 to $50 per month. The cost of tenant insurance depends on several factors, including: 

• Your insurance and claims history 
• Your credit rating 
• How much it would cost to replace your items 
• The claim and crime rate of your area 
• The frequency and severity of natural disasters in your area 
• How close you are to risks like rivers 
• Eligible discounts 
• Policy options (e.g., loss settlement, policy limits, deductible and coverage)

• Bundle your tenant and car insurance policies 
• Raise your deductible 
• Ask about other discounts 
• Review your insurance annually 

Work with a Sharp Insurance tenant broker today — it’s the best way to lower the cost of your Ontario tenant insurance. We take care of the price shopping and make sure you’re getting the discounts you’re eligible for. 

In Ontario, you’ll need to pay a deductible before your insurance provider can cover the loss. Deductibles usually range from $250 to several thousands of dollars. The higher your deductible, the lower your tenant insurance premium. We recommend choosing the highest deductible you can comfortably afford. Your insurance company may offer you a benefit where your deductible is lowered each claims-free year you have.  

A policy limit is the maximum amount you’ll get if you submit an insurance claim that’s covered. There may be different limits for different areas of your policy. You often have a single limit for each item as well as different, separate limits for a personal liability claim. 

When you buy your renter’s insurance policy, you will need to choose your policy limits. You should choose an overall limit that will cover replacing your stuff but isn’t so high that you’re paying for coverage you don’t need. As Ontario tenant insurance brokers, we can help you choose the right policy limits for your needs and budget. 

The loss settlement determines the amount you’ll receive if your personal possessions are destroyed. Generally, there are two options available: 

• Actual cash value: This is the market price or purchase price minus depreciation. 
• Replacement cost: This is the cost to replace the item as is.