Compare cheap Toronto tenant insurance quotes for free.

Toronto tenant insurance 

Tenant insurance, also sometimes referred to as renter’s insurance, is a type of property insurance designed for someone who is renting a property, whether an apartment, duplex, or house.  

While many landlords in Toronto will have their own insurance policies, those policies will not cover you in the event something goes wrong. If, for instance, the property you’re renting burns down, with all of your goods inside, your landlord’s insurance will not cover those lost items, whether it’s your television, computer, or priceless collection of family heirlooms.  

That’s where tenant insurance comes in. While this coverage is not mandatory, many landlords will require you to have it and to provide proof if you are renting their properties.  

Tenant insurance can protect you in a variety of ways. It can cover you if you accidentally damage your rental property or an adjacent unit. It can protect you if a party injures themselves in your home and sues. It can also provide you with temporary accommodation such as a hotel in the event of something like a fire.  

Tenant insurance is usually a good idea if you’re a Toronto renter. The good news is LowestRates.ca can help you quickly find a policy at the best price possible.

Toronto tenant insurance coverage types & endorsement 

Wondering what a tenant insurance policy covers? We have the answers. Take a look at what you can expect to be protected from below.

Broad coverage  

• Contents: One of the big benefits of tenant insurance is that it’s designed to cover your belongings. This includes everything from furniture, clothing, electronics and even vehicle contents. Some more expensive items, such as fine art or jewelry, may require an additional endorsement to cover. Make sure you ask about this if you have anything especially valuable

• Tenant liability insurance: This will protect you if a friend or relative visits your home and hurts themselves, and then later decides to sue. Such lawsuits can run into the millions of dollars, so consider this endorsement.

• Additional living expenses:If your home burns down or floods, and is temporarily uninhabitable, this coverage is designed to give you shelter. It can help cover the cost of moving or staying at a hotel or another form of short-term rental.  

In addition to the broad coverages above, you can add on even more coverage, known as endorsements in the insurance world. We lay out some of the more common ones below.  

Additional tenant insurance coverage  

• Additional contents: High-value items are not always included in a standard insurance policy. These items may include things such as family heirlooms, fine art, jewelry, rare collections, etc. If you have something particularly valuable that’s not covered, you can pay extra and get an endorsement to ensure it’s covered.  

• Identity theft: Given the growing problem of identity theft in Canada, this coverage is worth considering. It can help cover the costs of damages if your identity is stolen. 

• Overland water: This is a relatively new coverage, but a required one given the growing risk of flooding due to climate change. Overland water damage specifically covers water damage from water entering your home due to a torrential downpour, or a river flooding its banks. Essentially it protects you if a sudden surge of water caused by weather finds its way into your property and causes damage. 

• Sewer back-up: This endorsement again protects you from water damage. In this case, it can protect you from sewage spilling back into your home, either because a storm overwhelmed the sewer near your home, or debris or tree roots have clogged your sewer pipes, leading to water backing up into your home. 

How to choose a tenant insurance policy

Tenant insurance types

Broadly, tenant insurance falls into two categories. They are:

• All perils

• Named perils

Perils refers to a specific thing that is covered under your policy. Let’s take a look at what the above two types of coverages mean.  

All perils: This is designed to protect you against, you guessed it, all the perils you can potentially face. It’s a wide net that’s being cast to protect you against things like fire or theft. Anything that’s not included must be explicitly stated in your policy.

Named perils: This one is more specific. Instead of broad coverage, very specific things will be named so that you know you’ll be covered for those things. If it’s not named, it’s not covered. 

Unsurprisingly, all perils coverage will cost you more than named perils. However, that price may be worth it for some, as it will offer you peace of mind that you will be covered no matter what goes wrong.  

Tenant insurance coverage amount 

This is the total value of coverage you can get for your possessions if they are destroyed. This coverage should be tailored based on the value of what you own in your rental home.   

You can start figuring out this amount by taking an inventory of everything you own, or at least, things you would want covered. You should also keep a record of anything that proves you owned these things, including photos and receipts. A good time of year to update your inventory is when your policy is up for renewal.  

Actual cash value vs, replacement cost

While you're figuring out how much coverage you need, you’ll also want to figure out if you want an Actual Cash Value (ACV) plan or a replacement cost plan for your possessions. 

An actual cash value (ACV) plan is designed to reimburse you for the claimed value of your possessions at the time they were damaged. ACV plans account for depreciation, so the money you get from a claim might not be enough to replace the items. 

On the other hand, replacement cost plans pay you the full replacement value of any lost or damaged possessions. If your old TV is stolen from your insured property, the insurance provider will provide coverage so that you can buy a new TV of a similar make and model.  

The main benefit is that you can guarantee that your claim will be enough to replace anything stolen or damaged. 

How much does tenant insurance cost on average?

Your pay will depend on what’s included in your policy. Prices can range from as low as $20 to as high as hundreds of dollars a month.  

Tenant insurance is designed to be tailored to a specific person, the rental unit they live in, and the city or town they are located in. All these factors help determine the final price, which makes it difficult to determine the Toronto average.  

One thing to remember when shopping for a tenant insurance policy is that coverage is just as important as price. If you cannot afford to replace your jewelry collection if it is stolen or damaged, then sometimes it’s worth paying the extra $10 a month to ensure it is covered.  

Also, keep in mind some coverages, such as liability, can help cover you from financially devastating lawsuits. If a guest were to hurt themselves in your home and sue you for loss of income due to being unable to work, you could be on the hook for hundreds of thousands or even millions of dollars. A tenant insurance policy can help protect your financial future in such an event.  

At the end of the day, if you have to make a large claim, the amount you pay for a tenant insurance policy will seem like a small price to pay in comparison. So make sure you’re protected.  

Factors that determine your tenant insurance rate

As mentioned, tenant insurance policies are a tailored product, meaning your individual circumstances are taken into account when determining price.  

Let’s look at some of those circumstances.  

• Claims history: Have you ever filed an insurance claim before? If you have, insurance companies will take this into account and likely increase your monthly or annual premium. That’s because insurance companies try to determine how likely you are to file a claim, and past claims suggest you may make future claims.

• Credit score: Ontario allows insurance companies to use credit scores to determine discounts for consumers, as long as you consent and your credit score meets the insurer’s threshold. The good news is your credit score can never be used to raise your insurance rate; it can only be used to offer you a discount. So, if you have a good credit score, inquire with your insurer about any savings you may be eligible for.

• Home inventory: What you include in your contents list and your total coverage amount will determine the rate insurance companies give you. If you possess many valuable heirlooms and ask for a large coverage amount, expect to pay a lot more for you insurance policy.

• Location: Insurance companies will look at where you live to determine pricing. Live in a neighbourhood that has been prone to floods? Expect to pay more for insurance. This is also true if you live somewhere that has a lot of break-ins.

How to get the cheapest tenant insurance

How to get the cheapest tenant insurance

1. Bundling: If you have multiple insurance products, such as car insurance, make sure you inquire about a bundling discount. Many insurance companies offer these, and savings can range from 5-15%.

2. Compare: Your policy will come up for renewal every year. This is a great time to shop and compare the market. Make sure you’re always comparing rates from multiple insurers before you commit to a policy. You can save hundreds or even thousands of dollars annually by doing so. Using a site like LowestRates.ca makes this process easy. 

3. Customize coverage: We listed some common endorsements above. Adding or removing these will have an immediate impact on your insurance pricing. While having the right coverage is important, make sure you’re also getting insurance that is within your monthly budget. 

4. Improve safety: Have an alarm system? You may be eligible for a discount. Taking steps to secure your rental unit, such as installing a deadbolt, may lead to an insurance discount for you. It lowers the likelihood of theft and, thus, of you making a claim. 

5. Increase deductible: A deductible is an out-of-pocket amount you pay before the insurance company covers you for your claim. The higher this is, the lower your annual premium will be. A good rule of thumb is to set aside the amount of your deductible in an emergency account so you can pay it whenever you make a claim.