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7 minute read Published on Jan 16, 2026 by BrokerLink Communications
Tenant insurance in Canada offers more than peace of mind--it's a practical and affordable safeguard for renters in case the unexpected occurs. Whether you're living in a high-rise condo, basement suite, or townhome, this home insurance coverage is specifically designed to protect your interests and finances.
Let's take a look at what's protected under tenant insurance:
Protects your belongings: Whether it's your laptop, clothing, furniture, or other items, if your stuff is stolen or damaged, you'll be covered.
Covers temporary living costs: If something happens to your rental home that makes it unlivable, tenant insurance will help cover living expenses and short-term rentals.
Shields against liability claims: If someone gets hurt in your rental home or you accidentally cause damage to someone else's property, tenant insurance coverage has your back.
Stick around to learn more about tenant insurance.
Tenant insurance, also known as renters insurance, does more than protect the place you call home. While your landlord's insurance policy covers the physical building, it doesn't cover your personal belongings or any liabilities. That's where the importance of tenant insurance comes in. According to 2024 data, 41% of Canadian renters have yet to purchase tenant insurance. That's millions of people potentially unprotected against theft, vandalism, fires, water damage, and liability claims.
For example, let's say a renter named Emily lives on the second floor of your Toronto apartment building. One night, her apartment floods due to a burst pipe in the unit directly above hers. While her landlord pays for the repairs to the actual rental unit, as it is part of their landlord responsibilities, Emily's electronics, clothing, and furniture all suffer water damage. Because she doesn't have tenant insurance, she had to pay $8,000 in replacement costs for her items out of her own pocket and the cost of a hotel room for a week while repairs were conducted. If she had purchased a tenant insurance policy, the cost of replacing her belongings and her hotel room would have been covered by her insurance company.
Legally speaking, tenant insurance is not mandatory in Canada, like how auto insurance is. However, you may be required to present proof of coverage to your landlord as a condition of your lease agreement. If you are unable to provide coverage proof, you may lose out on your rental home. Regardless, even if tenant insurance policies aren't legally required, having this coverage is a smart, affordable way to ensure you are protected financially in the event something happens that's out of your control.
Ask your landlord directly or ask a broker to review the terms of your lease agreement to ensure you purchase coverage that complies with these terms. If a landlord requires you to have tenant insurance and you sign a lease with this landlord, then you are contractually obligated to purchase coverage.
Standard renters insurance typically includes the following coverages:
Contents coverage is specifically designed to protect your belongings from risks like fire, theft, vandalism, water, wind, and other natural disasters. Policies often start with $30,000 to $50,000 in coverage, but many renters underestimate how much stuff they own and the value of their items. For example, the replacement cost for a two-bedroom apartment's items averages to around $50,940. When you purchase basic coverage, you'll have the option of choosing between:
Replacement cost value: Reimburses you for the full cost of buying new items. For example, if your 2-year-old laptop is stolen, you'll get enough money to buy a new one.
Actual cash value: Accounts for depreciation, so you’ll receive less compensation from your insurance company. For example, if your 2-year-old laptop is stolen, you'll get its depreciated value in compensation, not the cost of a new one.
Personal liability, also known as third-party liability coverage, is a type of insurance designed to protect policyholders against third-party claims or lawsuits. These could arise if a guest or visitor enters your home and injures themselves while there. It could also arise if someone’s personal property is damaged due to your rented home.
The reality is that one incident that ends up in a lawsuit can be extremely expensive unless you have tenant insurance. With a tenant insurance plan that features liability coverage, you will be compensated for the cost of legal fees, medical bills, property repair bills, etc., if a third party sues you for bodily injury or property damage. Most policies have liability limits of $1 million, but some landlords may request $2 million in coverage if you live in a luxury rental home.
Additional living expenses will help cover costs if your rental becomes uninhabitable due to an insured loss, including:
Hotel or short-term rental costs.
Meals.
Transportation expenses.
For example, if a fire forces you out of your rental home for 3 weeks, your additional living expenses coverage will help pay for your Airbnb and daily meals until you can safely move back in.
Depending on where your rental property is located and what personal items you own, you may want to customize your tenant insurance with additional coverage options:
By adding overland water insurance to your policy, you can receive an insurance payout if your items are lost or damaged due to above-ground water flooding, such as overflow from a nearby lake or river, melting ice, or heavy precipitation. For example, spring thawing causes water to seep into your balcony door, causing water damage to your floors and walls. Unless you have this coverage, you'll be responsible for paying for any repairs or replacements.
Identity theft coverage offers many advantages to tenants. For example, if a third party steals your ID, like your driver’s licence or passport, or other information, like your credit card number or social insurance number, this type of coverage can compensate you for the associated costs. These costs may range from the expenses incurred to get your identity back to the money lost or spent by the thief who stole your identification.
If sewage or wastewater backs up into your home, flooding it and damaging your belongings in the process, your insurer will issue a payout to help you replace your damaged belongings under this optional tenant's insurance policy.
Valuable items coverage is specially designed to protect items of high value, like jewellery or artwork. So, if you have lots of expensive items in your rented unit, then it may be worth adding this type of coverage to your tenant insurance plan.
Tenant insurance in Canada is generally very affordable, but your premiums can vary based on the following factors:
Apartment buildings with secure access often cost less to insure than older homes in areas with higher crime rates, severe weather conditions, and areas prone to natural disasters. In Ontario, tenant insurance quotes range from $20 to $30 a month, whereas in the Atlantic provinces, rates range between $15 and $25 a month.
If you own more items and have items with high values, you'll need more coverage. For example, a student may only need $20,000 in coverage, whereas an older professional couple with high-end electronics and clothing may need $100,000 or more.
The higher your deductible amount is, the lower your monthly premium will be. Most renters choose a deductible of $500, but increasing it to $1,000 can reduce your costs.
In some provinces, like Nova Scotia, insurance companies are able to use your credit score when calculating your premiums. This soft credit check can allow you to get a lower insurance rate, as having a high credit score shows that you are responsible with your money. If you live in a province where credit scores are considered, you're likely to be eligible for a lower rate if you have a higher credit score.
Dogs, especially certain breeds, and roommates may increase liability risks, which can slightly raise your premiums. By bundling your coverage with other policies like car insurance or pet coverage, you may be able to qualify for discounts! Make sure to speak with a broker or your insurance company for more information.
No, only your items and interests will be covered under your insurance policy. It's recommended that your roommate purchase separate coverage.
To file a claim, you'll need to provide:
A police report (if applicable).
Receipts or proof of ownership.
Invoices for repairs or replacements.
Photos and videos/other evidence of the loss.
Buying tenant coverage is quick and easy, especially when you work with BrokerLink. Here's how to purchase coverage:
Do a walk-through of your rental property and add up the estimated value of your belongings.
Don't just settle for the first policy you find. Instead, request a quote from at least three insurance companies to give you an idea of exactly how much the same type of policy will cost from each company. If you don’t have time to do this, BrokerLink can do it for you. Having a broker reach out to their list of contacts is usually even more efficient than doing it yourself. Plus, you'll receive free advice from a BrokerLink professional about which policies are right for you.
Carefully assess and compare your options to make sure that the one you select offers the best coverage at the lowest price. Once you’ve chosen your preferred policy, choose a start date. The start date of your new policy should be the day that you move into your rented home.
Depending on the payment plan you selected, you will either be required to pay for the full cost of the policy upfront or pay for one month. You can avoid lapses in coverage by setting up automatic renewal and renewal reminders, along with auto-deposits from your bank account for each monthly payment.
If you still have questions about how to buy tenant insurance, call BrokerLink today. We can help you buy the best possible policy for your needs, as well as offer tips for first time renters and explain how other types of home insurance work, like additional interest home insurance. Find your ideal tenant insurance policy today by reaching out by phone, email, or in person. You can also use our online quote tool to request and receive a free tenant insurance quote in minutes.Need help? BrokerLink can manage this for you and notify you of any changes or discounts each year.
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