Compare Tenant Insurance Quotes in Canada

What is tenant insurance?

Safeguarding property is something homeowners think about all the time. They’ve made a huge investment in their home and its contents, and they want to secure it for years to come.

But home insurance isn’t just for homeowners. Tenants also have belongings to protect. That’s where tenant, or renter’s, insurance comes in. Tenant insurance in Canada can cover belongings against risks such as fire, theft or loss. Tenant insurance can also help with expenses if your home is unlivable.

Is tenant insurance mandatory in Canada?

Although tenant insurance is not mandatory, having it can help cover expenses that may come up accidentally or unexpectedly. Costs can add up when it’s time to repair or replace items and tenant insurance can ease that burden should the need arise.

Some landlords may also require their renters to get tenant insurance as part of the lease agreement. Either way, the peace of mind that comes with knowing your possessions are protected, to some degree, is worth the added expense in the long run.

What does tenant insurance cover?

Tenant insurance covers:

1) Contents for your possessions

Stuff happens and having someone break into your home or take your belongings is a very real threat in many areas. Tenant insurance will cover the contents of your home. Without it, you will pay out of pocket to replace items, which is one more added stress after having lost the items in the first place. Tenant insurance coverage also extends beyond your home, so if your bike is stolen from outside of your office, or you leave your laptop in the back of a cab, tenant insurance will help with replacement costs.

If you acquire more expensive items or need further coverage, you can always talk to your insurance provider about adding more coverage later.

2) Renter’s liability if you’re sued for property damage or personal injury

Liability coverage helps cover costs associated with lawsuits resulting from accidental damage to someone’s property, or if someone gets hurt in your home. For example, if you forget to turn off a tap and the overflowing water floods the apartment below, your downstairs neighbour could sue you for the damage caused. Or, if a visitor slips and gets hurt in your home, they could sue for the cost of rehabilitation, loss of earnings, and anything else resulting from the accident. These lawsuits can cost thousands, even millions of dollars, and can easily bankrupt individuals who don’t have personal liability insurance.

The minimal recommended coverage is $100,000 but if it is within your means, it might make sense to go higher for potential liability risks.

3) Living expenses, should your home become temporarily uninhabitable

If there is a problem with your unit caused by an insured peril, you may have to leave until the matter is resolved. If you are lucky, you could stay with friends or family, but this aspect of tenant insurance helps with temporary accommodation, transportation, and even the cost of meals until you can return home.

Some insurance policies cap living expenses so make sure to talk to your provider and understand what is available to you should you need to move temporarily.

What does tenant insurance not cover?

Tenant insurance policies limit the coverage provided to high-value items (e.g. expensive jewelry, antique watches, fine art or sports equipment). A $5,000 limit is common for these types of things, so if you lose $20,000 worth of jewelry, you will have to pay $15,000 out-of-pocket to replace it.

To insure these possessions for the actual replacement cost, you have to purchase a floater, also called a rider, which is an amendment to your standard policy. Examples of other items tenants purchase riders for include: musical instruments, expensive bicycles, and electronics. Always check your coverage limits on specific items to ensure your prized possessions are fully protected financially.

How can I get the cheapest tenant insurance?

Follow these tips to keep the cost down:

1. If you have a car, consider bundling your auto insurance together with your tenant insurance. By using the same provider, you could save up to 15% off both policies. This is called a multi-line discount.
2. If you are willing and able to pay a higher deductible in the event of a claim, insurers will reward you with a cheaper rate. A higher deductible usually results in lower premiums, but you'll have to pay more out of pocket if filing a claim; a lower deductible usually results in a higher premium, but you'll be paying less out of pocket if filing a claim.
3. Some insurers offer reduced rates for members of certain organizations or professional groups. Ask about discounts available and see if you qualify. For example, your insurance provider might offer a discount if you are an alumnus of University of Toronto. You don’t want to miss that.
4. Every insurance company will offer a different rate. The best way to save money is to shop around on RATESDOTCA.