Tenant insurance in Toronto: cost, coverage & why it’s a must
What is tenant insurance?
Tenant insurance, also known as renter's insurance, protects your belongings and liability while you're renting a home or condo. In Toronto, it's become a standard lease requirement, especially with rising repair and legal costs. The new normal for coverage is a $2 million liability policy, up from $1 million just a year or two ago. If you're searching for tenant insurance in Toronto, this guide will break down what you need to know.
Why it’s not just for the landlord (It’s for YOU)
Many tenants think insurance is just a landlord checkbox. It’s not. Tenant insurance protects you in case something goes wrong; flood, fire, theft, or accidental damage. One of our clients had a dishwasher overflow from using the wrong soap. It damaged the floor and leaked into the unit below. Thankfully, they had insurance. Without it? You’re paying out of pocket.
Tenant insurance in Toronto isn’t about protecting the landlord, it’s about protecting yourself from unexpected costs.
What does tenant insurance in Toronto typically cover?
Here’s what a typical policy includes:
Personal property (electronics, furniture, clothing, etc.)
Additional living expenses (if you have to move out temporarily)
Personal liability (if someone gets injured in your home or you damage another unit)
How much does tenant insurance cost in Toronto?
Monthly premium comparison: $1M vs $2M liability coverage
Estimated monthly premiums by provider
Prices vary depending on:
Location (Toronto postal codes may have different risks)
Amount of contents insured
Age of the building
Past claims history
Optional add-ons like theft protection or higher coverage limits
Why $2M liability is the new standard
Due to inflation, repair and legal costs have gone up. Insurance providers now recommend (and often require) $2 million liability coverage as standard in tenant insurance in Toronto policies.
What I recommend
My go-to is Square One Insurance, simple, affordable, and easy to set up. But feel free to choose any provider you’re comfortable with or transfer a policy you already have.
Just make sure your policy starts the day you get your key, as issues tend to happen on move-in day, so being covered from day one is key.
We’ve had clients who thought it wasn’t necessary, until a leak, fire, or even theft happened. You never think you need it, until you do.
Is tenant insurance mandatory in Toronto?
Short answer: Yes.
Most Toronto lease agreements include a clause that requires tenant insurance with minimum $2M liability. Removing it is not standard practice and often a dealbreaker for landlords.
Imagine you’re the landlord, wouldn’t you want your tenant covered if something unexpected happened? It’s peace of mind for both sides. Without coverage, some landlords may even skip your application entirely.
Final thoughts
Tenant insurance in Toronto is more than just paperwork, it’s your safety net. We don’t just suggest it because it’s required; we suggest it because it matters. It's an affordable way to protect yourself, and it often costs less than dinner out.
Tenant insurance in Toronto is for your benefit; yes, it protects the landlord too, but more importantly, it protects your belongings, your finances, and your peace of mind.
Need help or have questions?
If you’re just starting your search and figuring things out on your own, I’m here if you need a hand. Whether it’s tenant insurance, lease questions, or understanding how the rental process works in Toronto, feel free to reach out anytime.
