How tenant insurance helps landlords and tenants lower their risk

Tenant insurance is affordable and and will feel like a life-saver for both landlord and tenants if things go sideways. Here's why every landlord and renter in Canada should consider tenant insurance.

Samantha Kohn, Freelance Blogger

January 28, 2025

With files from James Battison.

This post was originally published on January 21, 2021 and updated on January 28, 2025.

No matter how carefully a property is managed, unexpected disasters like fires or floods can still strike. While landlords worry about property damage, tenants face a different kind of stress – losing their stuff and scrambling to cover unexpected living expenses. Despite this, only 59% of renters in Canada have tenant insurance.

That’s because many think it’s a waste of money or their belongings aren’t valuable enough to insure. This is not the case.

Tenant insurance is affordable, essential, and it will feel like a life-saver for both landlord and tenants if things go sideways. Let’s clear up some of the biggest misconceptions and show why every landlord and renter in Canada should consider tenant insurance.

How much is renters insurance?

Renters or tenant insurance is surprisingly affordable, especially when you consider the protection it provides. Most policies in Canada cost between $20 and $50 per month, depending on your coverage needs, location, and insurance provider.

Several factors affect your premium, like where you live, the unit size, and the value of the belongings being insured. Opting for higher coverage limits or adding policy endorsements like earthquake insurance or flood protection insurance may bump up your costs. Keep in mind that bundling your insurance with other policies, such as auto insurance, can often earn you a discounted rate.

I am new to Canada. Can I get tenant insurance?

Yes, you can absolutely get tenant insurance as a newcomer to Canada. In fact, having coverage is a smart way to protect yourself while you settle into your new home. Tenant insurance is available to anyone renting a place to live, whether it’s an apartment, condo, or part of a house. It provides financial protection for your belongings and covers liability in case someone is injured while visiting your rental unit.

When shopping for tenant insurance, you’ll need to provide some basic information, like your address, the value of your belongings, and any risks specific to where you live (e.g., flooding or theft). If you’re unsure where to start, comparing quotes online can help you find a policy that meets your needs and budget.

Are you looking for the best tenant insurance rate?

Access some of Canada's best rental insurance rates. Find the coverage you need at an affordable price - it only takes a few minutes to save.

How can I get the cheapest renters insurance?

Whether you’re a life long citizen, permanent resident or a newcomer or preparing to immigrate to Canada, everybody likes a great deal. It’s not uncommon for prospective tenants to seek out the cheapest renters insurance. In order to get the best deal, start by comparing renters insurance quotes online from multiple providers.

The most affordable plans typically cover the basics, like coverage for your contents and personal liability, but you can customize the policy to suit your particular needs. Keep in mind that going for the absolute cheapest option isn’t always the smartest move. Look for a balance between cost and coverage to ensure you’re protected when it matters most.

Resources to newcomers in Canada

There are plenty of resources available to help newcomers find a place to live, and navigate tenant insurance in Canada.

Websites like Facebook Marketplace and Kijiji offer an easy platform to search for rental units. Plus, websites like Ratehub.ca make it easy to see your options and find a policy that fits your budget.

Many tenant insurance providers also offer multilingual support and newcomer-specific advice to make the process easier.

I plan to rent out part of my home – why should I get tenant insurance?

If you’re renting out part of your home, tenant insurance is worth considering as an added layer of protection. While your landlord insurance policy covers the structure and some personal liability, it likely doesn’t extend to the contents or actions of your tenants. Requiring tenant insurance as part of your rental agreement ensures your renters’ belongings are protected and provides liability coverage for them, which can reduce your risk as a landlord.

Should a landlord require renters insurance?

Requiring renters insurance is a smart move for landlords. While tenant insurance isn’t legally mandatory in Canada, landlords can include it as a condition in a lease agreement. This ensures tenants have coverage to protect their belongings and provide liability insurance, which can shield both parties in case of accidents, such as a kitchen fire or a visitor's injury.

It’s important to keep in mind – even if your lease requires tenants to have insurance, there’s no guarantee they’ll maintain it. A tenant might purchase a policy for one month, show proof of coverage, and then cancel it.

For landlords, requiring tenant insurance reduces disputes and potential out-of-pocket costs. For example, if a tenant accidentally causes damage to the property, their policy can cover repair costs, minimizing the landlord’s financial burden. Although some tenants may initially resist, explaining the benefits and affordability of tenant insurance can help ease concerns. Making tenant insurance a lease requirement ultimately creates peace of mind for both parties.

How to educate your tenants on the need for insurance

So how do you get the word out about the benefits of tenant insurance? Here are a few suggestions that can help you get the info out.

Including an easy-to-find link to information on your homepage is a great way to keep your residents informed, especially if you use your website to provide tenants with access to forms and building information. Whenever they log on, they’ll see information regarding renters’ insurance, learn about the benefits, and (hopefully) buy it on the spot.

A quick tip: When communicating with renters about tenant insurance, focus on the benefits to them instead of relying on scare tactics.

A simple brochure is a great way to communicate the benefits of tenant insurance. Highlight the key features of insurance policies and provide your contact information should they want to discuss it further. Make these brochures available in the lobby of your building and include them with every lease agreement.

A quick tip: Include the name and contact information of an affordable insurance provider in any literature you create. If people don’t have to do much legwork themselves, they’re more likely to take action.

Insurance companies and brokers are always looking for new customers, and most will be happy to help educate individuals about the benefits of their products. Reach out to a company to determine if they’ll partner with you to launch an informative awareness campaign directed at residents in your building.

A quick tip: When you approach a company and ask them to partner with you, ask if they can offer special rates for your residents. If you arrange a special discount, your tenants are more likely to see the value in purchasing insurance. Discounts are generally reserved for larger scale rental operations.

The bottom line

Tenant insurance is mutually beneficial for both the tenant and the landlord. If, after all the leg work, they’re still avoiding getting insurance, here’s one last tip. With many people working from home these days, they may write off tenant insurance costs on their tax returns. Be sure to highlight this in whatever way you choose to communicate with your tenants.

Categories	Home Insurance Insurance
Tags	rental property renters insurance tenant insurance