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The cost of tenant insurance by province in Canada
To compare the cost of tenant insurance across Canada, here are four different quotes we received in 2024 for one renter's profile – with the changing factor being their location. Keep in mind that insurers calculate individual rates based on the risk you bring and the coverage you need. You won't know how much you'll be paying until you get a quote yourself.
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What is tenant insurance?
Matt Hands, VP, Insurance
Tenant insurance (otherwise known as renters insurance, contents insurance, or apartment insurance) gives you the benefits of a homeowner's insurance policy but without coverage for the physical dwelling. The landlord's insurance covers the building, not yours.
Generally speaking, there are three types of coverage on a basic tenant insurance policy: liability insurance, contents insurance, and additional living expenses. By paying our regular premiums to your provider, you'll be protected financially from all different types of tenant-related emergencies.
If you're looking for tenant insurance in Canada, we’re here to help. You can get a customized tenant insurance quote online with us in under five minutes today – all from the comfort of your couch.
Is tenant insurance mandatory?
Tenant insurance isn't mandated by law in Canada, but many landlords will require you to purchase coverage as a stipulation in the lease agreement. And even if that's not the case for you, it's a good idea to get insurance anyway.
While your landlord may have their own home insurance policy, that doesn't mean you're immune to risks as a renter. Landlord insurance (or rental income property insurance) is only there to protect your landlord from their own financial implications, such as building damage or a tenant liability claim. You could still face your own financial troubles as a renter for all different reasons, such as the loss of your belongings due to a break-in.
What does renters insurance cover in Canada?
As a renter, it's important to understand the coverages on your tenant insurance policy. While a standard package may be enough, you can also add optional endorsements to better suit your coverage needs.
Included types of renters insurance coverage
Generally speaking, a standard renters insurance package includes three types of coverages: contents insurance, living expenses, and liability protection.
Contents
Living expenses
Liability
Optional types of renters insurance coverage
Depending on your provider, some coverages may be excluded unless you pay extra. Here are a few popular options you can ask your insurer about.
Overland water
Sewer backup
Identity theft
Personal valuables
How much is tenant insurance?
So what is the average cost of renters insurance? Renters insurance across Canada typically ranges between $20 to $50 each month, but this will depend many different factors. Be sure to compare renters insurance quotes before you purchase a policy to make sure you get the best rate on the market.
compare quotesFactors that impact your tenant insurance quote
There are many different factors that will impact the cost of your tenant insurance coverage. Here, we cover eight main ones, so you can better understand the quoting process for your policy.
- Property type
A studio apartment comes with different risks than a basement unit. So your provider will take your property type into account when calculating your tenant insurance rate.
- Location
Renting in a neighbourhood prone to theft and vandalism can increase your rate substantially. And flood-prone areas also won't reflect well on your tenant insurance premium.
- Personal belongings
The more items you have to insure, the more expensive your coverage will be. Some valuables (e.g. artwork) may also require extended coverage limits for an added cost.
- Credit score
Not all tenant insurance companies look at credit to calculate your renters insurance rate. But if you can opt-in for a soft credit check, you may see a discount for having a good score.
- Pets
Did you know owning a pet can increase the cost of your renters insurance? This is especially the case for vicious dog breeds – due to the added risk of a liability claim.
- Living situation
Do you live with others? The more people there are to insure, the more expensive your coverage will be. Also, keep in mind that it's often a better idea to buy separate policies when living with roommates.
- Insurance history
If you've made several property insurance claims in the past, this will reflect poorly on your tenant insurance rate – providers like to see low-risk customers.
- Applicable discounts
Be sure to ask your provider about any available discounts. For instance, just having a fire extinguisher on hand can save you a few bucks each month.
Tenant insurance misconceptions
In a recent survey conducted for our Digital Money Trends Report, we found that less than 50% of renters in Canada actually have tenant insurance in place. Only 48% of renters surveyed claimed to carry coverage.
If you're part of this group, you may be under the impression that tenant insurance isn't a necessity. And while it isn't mandated by law, this is not true. Statista reported four reasons why tenants in Canada believe they should forego coverage, and here, we explain the invalidities behind each one and why you should highly consider getting a policy anyway.
"Renters insurance is too expensive."
"I don't have enough contents to need renters insurance."
"My landlord has coverage, so I don't need renters insurance."
"My roommate has renters insurance, so I don't need it."
How to get cheap tenant insurance online
While insurance companies are the ones to quote you, that doesn't mean you can't take matters into your own hands. Here are eight different tips you can test out to ensure you're getting the cheapest tenant insurance rate on the market.
- Shop and compare
At Ratehub.ca, we take the work out of monotonous phone calls and visits to many different brokerages. By entering your information once, we can show you quotes from Canada’s top insurers.
- Bundle policies
Insurance companies often give discounts to customers who get multiple products from them (e.g. tenant and auto insurance). Look to bundle multiple policies for a cheaper rate.
- Install monitored alarms
Having a monitored alarm system installed – one that is connected to a central station – can lead to a discount on your policy. This typically won't include your own cameras and motion sensor lighting.
- Increase your deductible
The standard tenant insurance deductible is about $500. If you increase the deductible (the amount of money you cover before insurance pays the rest), you'll see a decrease in your premium.
- Limit your claims
A clean claims history looks good to insurers. If you submit a claim, make sure it's worth it. Never submit one for less than your deductible – claims should be reserved for times of significant financial distress.
- Pay annually
Paying your premiums on an annual basis, as opposed to monthly, reduces your insurer's administrative costs while showing loyalty – so you may be rewarded with a cheaper rate.
- Review your coverage
Make sure you aren't overinsured. Document your contents properly and review their value with an annual audit of your belongings – you won't need $1,000 in coverage for a TV that's only worth $500.
- Get a group rate
Some insurance companies offer special discounts to school alumni and working professionals (e.g. CPA). It won't hurt to ask your insurance representative about any eligible discounts.
Common tenant insurance claims in Canada
While tenant insurance can cover various different risks, here are three different examples of common claims in Canada – and how having the right coverage in place can protect you financially.
Stolen property
In 2022, over 132,000 cases of burglary were reported nationwide. With tenant insurance, however, you won't be on your own when it comes to replacing all your prized possessions.
Basement flood
Basement floods cost an average of $40,000 to repair. And while tenants might not be financially responsible for building damage, you'll still want coverage for all your contents.
House fire
In 2021, residential fires across the country amounted to over 10,800 incidents. If your unit burns down, a renters insurance policy can help replace your items and pay for temporary accommodations.
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A snapshot of Canadian renters
Now that you've become an expert on all things tenant insurance, let's take a quick look at the rental market in Canada. Here are some interesting facts we found, according to the Canadian Rental Housing Index (2021).
The average cost of rent and utilities in Canada is $1,208 – While this is representative of Canada as a whole, the average cost is slightly higher in the most populated province, Ontario – tenants here see an average monthly payment of $1,406.
The average renter household income in Canada is $68,100 – Across the country, 33% of tenant households spend over 30% of their income on rent and utilities. Meanwhile, 15% of this population still uses up over half their income on these living expenses.
33%
of Canadian households spend over 30% their income on rent and utilities.
15%
of Canadian households spend over half their income on rent and utilities.
Canadian renting statistics by province and territory
Below, we also break down different Canadian tenant statistics by province and territory – including the number of renting households, as well as the average household income and average rent and utilities cost per household. Once again, all numbers were sourced from the Canadian Housing Index (2021).