Tenant Insurance Ontario: What It Covers and Who Needs It

Tenant insurance (also called renters insurance) is a home insurance policy for people who rent. In Ontario it typically covers three things: your belongings, your personal liability if you accidentally injure someone or damage someone else's property, and additional living expenses if your place becomes unliveable after an insured loss. It isn't required by law, but your lease can require liability coverage.

Here's what's usually covered, what isn't, how it works with roommates and how to pick a policy.

Key takeaways

• Your landlord's insurance doesn't cover your things. It's written for the landlord's building and liability.
• Three core parts: contents, liability and additional living expenses (ALE).
• A lease can require liability insurance. Section 11 of the standard lease covers this, and you must show proof if asked.
• Roommates usually need separate policies. Unrelated roommates aren't normally covered under yours.
• Read the exclusions. Flood, sewer backup and high-value items often need add-ons or have limits.

This is general information, not legal or insurance advice. For your situation, talk to a licensed insurance agent or broker, and for tenancy questions contact the Landlord and Tenant Board or a community legal clinic through Legal Aid Ontario or Steps to Justice.

What tenant insurance covers

1. Your belongings (contents)

Clothes, furniture, electronics, kitchen gear and most household items, both in your unit and, under many policies, while you're away from home. You'll usually choose between two styles of coverage:

• All risks (comprehensive): covers loss from any cause except those the policy specifically excludes.
• Named perils: covers only the causes listed, such as fire, theft, smoke, vandalism or sudden water damage from plumbing or appliances.

All-risks coverage is broader and usually costs more.

2. Personal liability

If you're found legally responsible for injuring someone or damaging their property, liability coverage pays, up to your chosen limit, what you'd owe plus the cost of defending you in a lawsuit. For renters, a common example is a kitchen fire or overflowing bathtub that damages the unit below or the building itself. You can often raise your liability limit.

3. Additional living expenses (ALE)

If a fire or other insured loss makes your home unliveable, ALE pays the extra cost of living elsewhere, such as a hotel or temporary rental and higher food or laundry costs. It doesn't pay all your expenses, only the increase, and it's subject to limits. Keep every receipt.

What it usually doesn't cover

The building itself, and appliances the landlord owns, are the landlord's to insure. Your policy covers your property and your liability.

Can a landlord require tenant insurance in Ontario?

Yes, if it's in the lease. Section 11 of Ontario's standard lease lets the landlord and tenant agree whether the tenant must have liability insurance. If you agreed to it and the landlord asks for proof, you must provide it. Contents insurance for your own belongings is up to you.

A few practical points:

• Check section 11 of the lease before signing. If it's ticked, budget for a policy from move-in day.
• Ask what liability limit the landlord wants and get it in writing.
• Changes to a lease after it's signed must be agreed to in writing by both of you. Our guide to Ontario's standard lease walks through each section.
• Insurance isn't a deposit. A landlord in Ontario can't ask for a damage deposit instead of, or on top of, insurance. See rent deposit rules in Ontario.

Tenant insurance with roommates

Shared homes create shared risks, but insurance is usually individual.

• Each roommate buys their own policy. Home and tenant policies typically cover the policyholder, a spouse or partner, children and relatives living in the household. An unrelated roommate isn't on your policy, and their laptop isn't covered by yours.
• Liability still matters for shared spaces. If a roommate's candle starts a fire in the living room, the damage to the building and to other units can be large. Everyone carrying liability coverage protects the whole household.
• Agree on minimums. Put "each of us keeps tenant insurance with at least $X in liability" in your roommate agreement, and share proof once a year.
• Students: some home policies extend coverage to dependants under 21 who are students temporarily living away from home. Ask your parents' insurer before buying a separate policy, and confirm whether liability applies at your Toronto address.

If you're forming a household from scratch, it's a good topic to raise early. When you ask a potential roommate questions, add "Do you have tenant insurance?" to the list.

How to choose a policy

1. Make a home inventory

Walk through each room and list what you own, with rough replacement values. Take photos or a video and keep receipts for expensive items. This tells you how much contents coverage you need and makes a future claim much easier.

2. Decide on the key choices

• Contents amount: enough to replace everything you own.
• All risks or named perils.
• How claims are paid: ask whether belongings are paid at replacement cost or at a depreciated value.
• Liability limit: at least what your lease requires.
• Deductible: a higher deductible lowers the premium but means you pay more per claim.
• Add-ons: sewer backup, overland water, and scheduled items like jewellery or a bike.

3. Understand what affects the price

We're not quoting prices here because they vary widely by insurer and situation. The factors insurers commonly weigh include:

• the value of your contents and the coverage type you choose
• where you live, since insurers track claims by neighbourhood
• the building, including its age, wiring, plumbing, heating and whether there are smoke and CO alarms
• your personal claims history
• your deductible and any add-ons
• any discounts the insurer offers

4. Buy from a licensed provider

In Ontario, insurance providers must be licensed. Brokers compare policies from several insurers; agents represent a single company. You can check a broker's licence on the Registered Insurance Brokers of Ontario (RIBO) directory.

Before you sign, ask:

• What exactly is excluded?
• Are my belongings covered when I'm away from home?
• What are the limits on electronics, bikes and jewellery?
• Does ALE have a dollar or time limit?
• Do I need to tell you if I sublet, take in a roommate or work from home?

If you need to make a claim

1. Report it quickly to your insurer, with complete and accurate details. For theft, also report to police.
2. Document everything: photos of damage, a list of damaged or stolen items, receipts and any police report.
3. Keep damaged items unless they're unsafe, and check with your insurer before throwing anything out.
4. Ask about ALE if you can't stay in your home.
5. Complete the proof of loss form. It's typically due within 30 days.

If you disagree with a decision, use your insurer's internal complaints process first. If that doesn't resolve it, the General Insurance OmbudService (GIO) offers independent dispute resolution for its member insurers.

Bottom line

Tenant insurance protects the things your landlord's policy doesn't: your belongings, your liability and your costs if you're displaced. Check whether your lease requires liability coverage, have each roommate get their own policy and choose coverage based on a real inventory, not a guess.

Setting up a shared home? On ColivEase you can match with roommates by area, budget, move-in date and shared language, form a team and apply together, then sort out insurance and a roommate agreement before move-in day. It's free to get started on ColivEase.