Can Landlord Force You to Get Renters Tenant Insurance?

Yes, the landlord can make it a mandatory requirement to get renters or tenant insurance for your leased premise, prior to moving in. A tenant or renters insurance policy will include liability coverage, break-ins, theft, fires, and hailstorms. As the tenant, you can negotiate these terms on the lease.

In general, a base level policy for tenant insurance will include liability coverage at the minimum. For example, this basic tenant insurance is offered by from Square One insurance. They offer the basic liability coverage, plus a range of other options.

A landlord will require this so that both the tenant and their neighbors remain fully protected. A tenant insurance will insure any damage caused by the tenant to the neighbor or the building. It also covers incidents such as fire and theft.

Landlords will have their own insurance for the building, but this will not cover the personal items of the tenant. To avoid any let downs, the landlord will make it mandatory for each renter to have their own renters insurance.

A landlord will ask the renter to provide proof of insurance prior to moving in. Depending the landlord, the tenant may be required to provide this proof at every lease renewal.

Should Tenants Have Renter’s Insurance?

It is recommended that tenants have renter’s insurance to protect themselves from incidents such as fire, break-ins, theft and liability for damage to the property. Without renter’s insurance, a tenant may be liable for covering the cost of personal property.

In general, a tenant insurance policy will cost $12/month. Square One Insurance offers exceptionally low rates with above basic coverage for renters. It is a good idea to have tenant insurance – even if the landlord does not make it a requirement. At the end of the day, if something were to happen; your protection will cover your belongings.

For example, if a theft were to occur and your personal items such as laptop, cellphone and jewelry were stolen – a tenant or renters insurance policy would compensate you for the loss. It is always advisable to stay safe and keep your belongings protected.

In Ontario, renters are not required to have tenant insurance when renting an apartment or house. However, a landlord can request proof of tenant insurance as a condition within the lease agreement. A lease agreement is a legal binding agreement and the conditions do need to be met by renters. The renter can choose to sign the lease and obtain tenant insurance or look elsewhere.

If a landlord is requesting renters insurance, it is good sign that they are serious about who they accept into their premise.

What is the Average Cost of Tenant Insurance?

Based on information from the Insurance Information Institute, the average renter pays $15/month for tenant insurance. In Canada, we’re seeing customers pay anywhere from $12/month to $40/month for renters insurance.

At the time of us writing this, a few people across Canada obtained insurance at the following monthly rates for various types of properties:

  • $16/mo – 1998 Semi-Detached Duplex ($40,000 for personal property, $30,000 for additional living expenses and $1 million for liability)
  • $16/mo – 2010 Apartment ($15,000 for personal property, $5,000 for additional living expenses and $500,000 for liability)
  • $12/mo – 2000 Apartment ($15,000 for personal property, $25,000 for additional living expenses and $1 million for liability)

As you can see, the prices for tenant insurance is very affordable in Canada.

Your premium will demand highly on the coverage. You may choose to cover additional items such as your engagement ring, watch, laptop and piano. The greater the value of your belongings, the greater your premiums will be to protect them.

A tenant insurance policy can also cover a range of other additional coverages such as earthquakes, broad water damage, inland flood, wind and hail as well as water backup. If you live in an area where earthquakes are more prone, such as British Columbia – you should highly consider earthquake insurance.

How Quickly Can I Get Renters Insurance?

You can get renters and tenant insurance very quickly – usually within 10-15 minutes. Most insurance companies have online applications that can process your tenant insurance within minutes and send you proof of renters insurance to your email.

In Canada, this insurance company offers one of the best tenant insurance policies on the market. They have free additional coverage and you’re accepted online within minutes. Most renters use them in Canada for their apartment insurance.

If your landlord is requesting proof of tenant insurance – you can apply online for insurance within minutes.

Can You Be Evicted For Not Having Renters Insurance?

Yes, you can be evicted for not having renters insurance if it is a clause in your signed lease agreement. If you and the landlord have signed a lease agreement with a clause to have renters insurance; the landlord can evict you for not having it. You must renew the renters insurance if you are renewing the lease agreement under the same conditions.

In general, a landlord will offer you a grace period to obtain tenant insurance. However, if you are unable to obtain renters insurance due to things such as your credit – you need to inform your landlord.

A tenant with bad credit can potentially get denied for insurance, but this insurance company has a good track record of accepting most renters. You can always offer your insurance company the option to pay your premiums upfront for the year.

Does Tenant Insurance Cover Damage to Landlord’s Property

Yes, tenant insurance will cover damage to the landlord’s property. Every tenant insurance policy has a liability coverage, which covers damage to the property caused by tenant. This coverage will also cover living expenses as a result of the property being inhabitable.

According to the Insurance Board of Canada, as a tenant, you can be liable for any damage that you cause to the property or to anyone who visits the property. If your landlord is requiring you to get tenant insurance, it should be included in the lease as a clause.

In order for the lease agreement to be binding and in affect, both the tenant and landlord need to sign off on the conditions set forth.