Tenant insurance protects you when you’re renting a place. It is also known as renters insurance. Tenant insurance is not required by law. However, it is always a good idea to have tenant insurance. Tenant insurance can save you from covering the cost of repairing or replacing your valuable belongings if an unforeseen event occurs. The price of tenant insurance can range from $11 to $50 per month. In this article, we will explore almost everything about tenant insurance. Additionally, we will provide the best tenant insurance in Toronto, Canada.
What Is Tenant Insurance In Toronto?
Tenant insurance is also called renters insurance. Tenant’s insurance in Toronto is a type of property insurance. It is meant for the people who rent a place to live, like a house, apartment, condo, or basement. Tenant insurance protects the tenant from loss, liability, or damages to personal belongings. It provides insurance coverage against risks like fire damage and theft. Additionally, it covers personal injury to others on your rental property. Tenant insurance covers the cost of replacing or repairing your belongings in the event of a catastrophe.
Although landlords carry insurance for the property itself. But it doesn’t cover the tenant’s personal belongings. That’s why tenant insurance is necessary. It is not mandatory in Canada. But it is always safe to be insured.
How Does Tenant Insurance Work?
Tenant insurance covers the cost of damages that happen by accident on the rental property.
For example: Your dishwasher malfunctions and water damages the unit and your belongings. The tenant insurance will cover the damages to anything that’s yours.
The renters insurance also covers unintended damage to others who visit the property.
For example: If someone slips and falls in your unit, tenant insurance can cover it.
Most of the renters insurance covers three main areas:
This coverage will help you pay for the contents of your rental space that were lost or damaged through no fault of your own. You can receive this coverage if the loss or damage is the result of any of the following:
- Weather-related damage
- Electrical malfunctions
This coverage protects you if someone at your place has an injury. Or if their belongings were damaged by accident. It also covers any damages caused by your family, your pet, and yourself.
Expenses covered include any legal expenses or court judgments up to the policy limit.
Additional Living Expenses
If your rental space is unlivable because of a reason covered by tenant insurance, you can get additional living expense coverage. You may receive compensation for the following expenses:
- Temporary Rental
- Hotel Expenses
- Restaurant Bills
What Is Not Covered By Renters Insurance?
Some renter’s insurance policies cover the damages related to extreme weather conditions. Most of them don’t! The following damages are not covered by most renters insurance:
- Car damage
- Pest infiltrations like bed bugs
- Sewage backup into your rental home
- Extraordinarily expensive items like jewelry and electronics
- Injury caused by some “high-risk” dog breeds
- Damages caused by the tenant’s deliberate acts or negligence
Why Do I Need Renters Insurance?
The stuff you put inside your rented space is what makes it your home. Your landlord’s insurance policy only covers the building. You need to have tenant insurance of your own to protect your belongings. Here is why you need renters insurance:
- Your landlord’s home insurance policy doesn’t cover your belongings.
- Some landlords will require tenant insurance proof before handing over the keys.
- Renters insurance protects the insured from having to pay out of pocket in the event of unexpected events like fire or theft.
- It helps to build up an insurance history. So, it will be easy for you to get homeowner’s insurance if you buy a house.
- If a visitor gets hurt on your rented property, they may sue you for damages. Tenant insurance can cover any legal fees and damages for this.
- Tenant insurance covers your belongings even when you are away from home.
- Some renter insurance also covers personal items stored in your car.
- Without tenant insurance, tenants are liable for the damages to the rental property.
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Best Tenant Insurance Companies in Toronto
You might not deem it necessary, but tenant insurance can cover you for a lot of unexpected damages. Here are the 10 top tenant insurance providers in Toronto:
1. Square One Tenant Insurance
Square One offers tenant insurance for $ 12 per month. It is one of the cheapest tenant insurance in Ontario. It is a customizable tenant insurance policy. You get to choose your limits, coverages, and deductibles. The offered policies protect against major losses like:
- Inland Flood
- Water Backup
- Wind Damage
- Wear And Tear
- Other Accidental Damage
However, the coverage doesn’t include coastal floods and repeated leakage.
|Essential Coverage||Optional Coverage|
|Additional living expenses||Bicycles, watercraft, and sporting equipment|
|Identity theft and financial loss||Fine arts and collectibles|
|Personal and premises liability||Business property|
|Legal protection||Personal property|
|Jewelry and watches|
2. RBC Tenant Insurance
RBC tenant insurance is one of the best and most comprehensive policies. It covers your personal belongings inside your rental unit or car. Moreover, it covers living expenses and liability claims. Here is an overview of RBC’s Tenant Insurance Policy.
|Personal Belongings/Contents||All Perils Coverage, meaning you’re protected against the broadest range of risks. The coverage amount varies per policy.|
|Special Limits on Certain Personal Belongings||There are certain maximum coverage limits. View the full list here.|
|Personal Property at Other Location||Covered, while you’re temporarily away from home|
|Property in Your Vehicle||Up to 100% of contents|
|Additional Living Expenses||Up to 40% of contents|
|Liability Coverage||For $1 to $2 million|
|Voluntary Medical Payments||Up to $5,000|
|Voluntary Property Damage||Up to $1,000|
|Deductible Waiver||Covered, if the claim exceeds $25,000|
Additionally, RBC offers extensions of coverage and optional endorsements.
3. Sonnet Tenant Insurance
Sonnet tenant insurance ensures that renters have all the basics covered. It is available across Canada. Sonnet renters insurance covers personal belongings, personal liability, and additional living expenses. Additionally, it covers sewer backup and overland water.
Their insurance cost is relatively lower and they are available only online. You can get a quote within 5 minutes. Sonnet Insurance offers standard and additional coverages. These include:
|Standard Coverages||Additional Coverages|
|Liability Insurance||Sewer Backup|
|Personal Belongings||Overland Water|
|Extra Expenses (Hotels or Lodging)|
The average cost of Sonnet insurance is $355 per year in Canada.
4. Apollo Tenant Insurance
Apollo tenant insurance starts from $11 monthly. It is relatively cheap compared to some other big companies. Still, it covers all the basic areas. Here are the three basic areas covered by Apollo tenant insurance:
|Contents||Additional Living Expenses||Personal Liability|
|Fire and smoke||Hotel expense||Property damage|
|Water damage||Food expense||Personal injury to others (at home or anywhere else)|
|Crime and vandalism||Temporary housing|
Not only that, but Apollo also provides coverage for computers, jewelry, and bicycles. The cost of insurance depends on location, coverage limits, and options you choose. Here’s an overview of Apollo’s tenant insurance coverages:
- Contents coverage: from $10,000 to $150,000
- Additional living expenses: Up to $5,000
- Personal liability: Up to $2 million
- Deductibles: From $500 to $2,500
- Water damage and full replacement value extensions
5. Desjardins Tenant Insurance
Desjardins tenant insurance is an all-risk tenant insurance to cover your needs. It covers almost all losses that can damage your belongings. With their optional coverages, you can have add-ons to your tenant insurance. You can customize your policy to meet your unique needs. The types of coverages and exclusions are given in the table below:
|Included coverages||Optional coverages||Exclusions|
|Liability||Ground water and sewer backup||Repeated water seepage or leaks|
|Fire, theft, vandalism||Flood||Landslides, subsidence, and other events|
|Accidental water damage||Rain, snow or sleet||Defects, deterioration, and wear and tear|
|Tornadoes, lightning, freezing rain, hail and wind||Personal property temporarily off-premises|
|Fire, smoke, or explosion after an earthquake||Home-based businesses and short-term rentals||Damage caused by certain insects and animals (vermin, rodents, bats, or raccoons)|
|Furniture and belongings||Earthquake|
6. Surex Tenant Insurance
Surex Tenant Insurance is quite an affordable renter’s insurance in Toronto. No matter where you live in Toronto, if you’re renting, you need tenant insurance. Surex is one of the best in Toronto and also relatively cheap. Still, it’s a comprehensive tenant insurance policy. Here are Surex tenant insurance offerings:
|Contents Coverage||If your belongings are damaged or stolen while in your rental unit, you can get the cost of repair or replacement.|
|Personal Liability Coverage||If an accident on your rental property causes injury to a third party, this coverage can help you pay for lawsuit and settlement costs.|
|Additional Living Expenses||If the property you’re renting becomes unlivable because of any insured reason mentioned in the policy, you will be reimbursed for additional living expenses. Such as:The costs of relocatingTemporary Housing or Hotel ExpensesFood Expenses|
Surex tenant insurance in Toronto doesn’t cover replacement costs above a certain amount for expensive items like jewelry.
7. Duuo Tenant Insurance
Duuo tenant insurance is flexible, easy, and online. Unlike other tenant insurance providers in Canada, Duuo has no cancellation fees or annual commitments. At Duuo, the basic tenant insurance costs $12-20 per month. Here’s the summary of the coverages provided by the Duuo:
|Liability coverage||Limits of Personal Liability:$1,000,000 or $2,000,000|
|Personal property – Contents||Limits of coverage available:$25,000; $50,000; $75,000 or $100,000|
|ALE (Additional Living Expenses)||Up to 40% of the limit of insurance for personal property (selected contents)|
|Additional coverages||Personal property temporarily away from rental unit: max limit $10,000. Personal property in Storage: max limit $10,000 for 60 days. Personal property temporarily removed from the rental unit for safety: max limit $10,000 for 90 days|
8. Allstate Tenant Insurance
Allstate is one of the largest insurance companies worldwide. The premiums are a little higher than other insurance companies. However, you have the option to customize your plan. Allstate also offers additional coverage for jewelry and electronics. Here’s an overview of tenant insurance coverages provided by Allstate:
|Standard Coverages||Optional Add-Ons|
|Personal Property (Contents)||Earthquake Damage|
|Additional Living Expenses||Home Business Coverage|
|Tenant Liability Insurance||Water Protection Coverage|
|Property in a Storage Facility|
|Personal Articles Coverage|
9. TD Tenant Insurance
It is another big bank, but it’s neither very expensive nor very cheap. You will be provided a comprehensive list of the items that are not covered under their tenant insurance policy. For a big bank, its prices are quite average. For students, TD provides the cheapest tenant insurance policies. TD tenant insurance provides two types of coverages:
|Standard Coverage||Optional Coverage|
|All Risks||Enhanced Home Coverage|
|Additional Living Expenses||Identity Theft Recovery|
TD provides protection for specialized items such as jewelry, fine art, some collectibles, wine and spirits, and more. The enhanced protection can also extend to situations like cyberbullying.
10. Wawanesa Tenant Insurance
Wawanesa Insurance has been in service since 1896, so it’s certainly got a reputation. Here are the types of coverages offered by Wawanesa Tenant Insurance:
|Standard Coverages||Tenant-specific Coverages|
|Belongings(Anything you bring into your rented place)||Tenant Improvements (Optional)Protection against any upgrades to the rented unit that you have made.|
|Liability(Incurred if someone gets injured on your rental property)||Damage to Dwelling (Optional)Protection against any permanently installed items that you have installed into the rented unit.|
|Loss of Use / Additional Living Expenses|
What Affects Your Insurance Rate?
The following seven factors decide your insurance rate:
- Property Type: The insurance company will rate its risk according to the type of property.
- Location: Location also affects the rate. The rate is slightly higher in Toronto than outside the city. This is because of the high theft rates.
- Belongings: There will be a higher rate for high-value belongings and vice versa.
- Credit Score: If you have a higher score, the insurance rate might be slightly lower.
- Previous Claims: You might be seen as a high-risk customer if you’ve submitted claims in the past.
- Postal Codes: The insurance company checks the crime rate in your neighborhood using your postal code.
- Other Risks: Some areas experience more natural disasters than others. In these areas, the rate is high because of the higher risk. The insurance company will assess the risks based on the information you provide.
Should I Get Tenant Insurance?
If you’re renting a property, it is always a good idea to buy renters insurance. Although it is not required by law, you can get covered if something goes wrong. Suppose you don’t have tenant insurance and some accident happens. You will have to pay the damages from your pocket.
Tenant insurance costs only about $11 to $50 per month. However, you can also customize your policy with some providers. Although it’s always a great idea to buy renters insurance, you may not want to get it because of the following:
- If you don’t own valuable belongings, it may not be a good idea to pay a monthly premium.
- If you’re trying to save money, insurance costs can disturb your budget.
- Also, the deductibles can be very high.
How Can I Get a Tenant Insurance Quote?
You can either get it online or call an agent to get a quote. Most of the insurance providers have online forms for you to fill out. It takes no more than 5 minutes to fill the personal information. Once you fill it out, you get the quote. Every tenant insurance provider is different. But generally, you might need to give the following information first:
- Postal code
- Type of property (Apartment, Condo, House)
- How long have you lived there?
- When do you want your coverage to start?
How Can I Save on Tenant Insurance?
Tenant insurance in Canada does not cost you much. But it can be costly if you have other insurance. Like life insurance or car insurance. The monthly cost of rent is also there. Here are some useful tips if you want to save on your tenant insurance:
- Buy online! It can cost you less and it is not time-consuming.
- Look at multiple providers and find the price that is best suited for you. Go with the cheapest!
- The long-term costs can be lower if you increase the deductibles.
- Some providers offer tenant and car insurance together.
- If you are a student or alumni, TD tenant insurance is best suited for you. It is cheaper than regular ones.
- If you have a home security system, your tenant insurance cost may decrease.
- Finally, make sure only those belongings are covered that need to be covered.
So, it is accomplished that tenant insurance is a very good idea. Although tenant insurance is not mandatory, you will feel safe if any unforeseen event occurs. There are many tenant insurance companies in Canada. All have their unique offerings. The average cost of tenant insurance varies depending on where you live.
We have outlined the 10 top renters insurance providers in Toronto. Get a free quote in less than 5 minutes. However, it is wise to weigh the pros and cons before buying it. You must consider all the factors that can lower your overall tenant insurance cost. And most importantly, if you don’t need it, don’t buy it. Additionally, you don’t want to over-insure yourself. If you buy it, only get the coverage you need.
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