Is tenant insurance mandatory in Ontario? (2024)

FAQs

Is tenant insurance mandatory in Ontario? ›

Tenant insurance is not mandatory for tenants in Ontario. However, there are many great reasons to get a policy as it helps protect your personal belongings, covers certain personal liability, covers additional living expenses, and can make finding suitable rental accommodation easier.

Is Tenant Insurance Mandatory in Ontario? 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 has your own insurance.

If a lease agreement includes a clause about renters insurance and you fail to comply, the landlord may choose to pursue eviction on the basis of a lease violation. However, they would still need to follow the proper eviction procedures and obtain a decision from the LTB before a tenant can be legally evicted.

Landlord insurance in Ontario is not required by law, but purchasing this protection is wise. If you are not insured and suffer a loss, there may be considerable damages that you would be required to pay yourself. These expenses can add up quickly and may potentially far exceed your initial investment.

While Ontario does not have any specific legal requirements for tenants to carry liability insurance, it is highly recommended to protect yourself financially. Typically, a minimum coverage of $1 million is recommended. This is a standard amount that provides reasonable protection in case of liability claims.

According to the Investopedia article mentioned above, most renters insurance policies cover personal items, living expenses, and liability insurance (typically from $100,000 to $300,000 in damages).

If urgent repairs or conditions make the rental property uninhabitable (such as severe water damage, fire damage, or critical failures of essential services), the landlord may need to pay for a tenant's temporary accommodation, such as a hotel room.

Just as you would have to pay for any repairs to your home caused by an unexpected event, without home insurance, you would also bear the full financial responsibility for replacing or repairing any belongings within the home that were lost or damaged as a result.

Your personal property, personal liability, additional living expenses, and guest medical expenses are usually covered under your renters insurance. It typically does not cover earthquakes, floods, bedbugs, mold, or damage to the exterior of the building.

On average, renters in Toronto can expect to pay anywhere between $20 and $35 per month for a basic tenant insurance policy. This adds up to an annual cost of $240 to $420. However, keep in mind that these figures are an average estimate and the actual cost could be lower or higher based on personal circ*mstances.

How much is landlord insurance in Ontario? ›

Average landlord insurance costs approximately 20% more than house insurance. You can expect to pay around $1,500 per year in Ontario for a house policy. An apartment will be about $350 per year.

The short answer is no. In Ontario, home insurance isn't required by law. In general, though, it's highly recommended. If something happens to your property – like a fire , windstorm , or hail damage – house insurance is there to repair or replace it.

If the landlord gave you Ontario's standard lease, you can check section 11 to see if tenant insurance is required. In your rental agreement your landlord can require you to have tenant insurance with liability coverage. Liability coverage pays for costs if you accidentally cause damage or injure someone.

The minimum requirement for mandatory auto insurance in Ontario is $200,000 in Third Party Liability, Direct Compensation – Property Damage, Accident Benefits, and Uninsured Automobile coverage.

Whether you own expensive electronics, furniture, clothing, or other valuables, renters' insurance can help cover the cost of replacing or repairing these items if they are damaged, destroyed or stolen, or lost due to fire, theft, vandalism or natural disasters like hurricanes or tornadoes.

Tenant Insurance (also known as Contents Insurance) is not a necessity by provincial law, but a growing number of landlords require it before forming a lease agreement – and with good reason.

If you're a renter in Quebec, you may be wondering if tenant insurance is mandatory. The answer is no, it's not legally required by the province. However, it is strongly recommended to protect yourself and your belongings, and is nearly always required by landlords to keep your lease in good standing.