According to a June 2023 national rent report, North York is within the top ten most expensive cities in Canada for rentals. Its rental market is also one of the fastest-growing markets in the country, meaning there’s still a lot of interest in rental properties.
People prefer living in rentals for various reasons, from flexibility to high home prices. One of the most enticing perks of renting a home is that the landlord is responsible for property maintenance. If something gets damaged in a fire, flood, or other perils, you can rest assured since their home insurance will pay for repairs.
However, the landlord’s home insurance policy doesn’t cover your belongings. If they get damaged in the same event, you won’t get coverage from their policy. Fortunately, you can get tenant insurance to protect your things. Tenant insurance can cover repair or replacement costs if various perils damage your belongings.
Tenant insurance isn’t mandatory, but it’s a good idea if you have valuables to protect. Learn more about the ins and outs of tenant insurance for North York renters to ensure you make the right insurance decisions.
Why Do I Need Tenant Insurance in North York?
While tenant insurance isn’t always mandatory in North York, it’s highly recommended that you get coverage for your rented home anyway. Here are some of the most compelling reasons why you should get North York tenant insurance:
Protection for your belongings
While building maintenance and repair is your landlord’s responsibility, they aren’t responsible for your possessions if they get damaged or lost within the rental premises. Tenant insurance can give you much-needed funds to replace or repair your lost or damaged belongings in the event of an insured peril such as a fire or a windstorm.
Some landlords will require you to get tenant insurance as part of your lease. If you don’t want to spend for tenant insurance, this may limit your rental options and get you in trouble if it’s already part of your existing lease agreement.
If someone gets injured in your rental property or you accidentally damage the rented property, you may be facing hefty bills. A tenant insurance policy can help you pay for costs, repairs, medical bills, or even legal fees if you’re sued.
How Does Tenant Insurance in North York Work?
There are three types of tenant insurance policies that you can buy in North York. Here’s a basic overview of each type:
This is usually the most affordable type of tenant insurance, where you can choose coverage only against specific perils. If it’s not listed in your basic policy, your insurer won’t give you coverage for that risk.
This is typically the most expensive option but also the one that offers the most protection for your rental and your belongings in it. Under comprehensive tenant insurance, you’ll have protection against all risks that aren’t explicitly excluded, as well as risks that don’t require optional add-ons.
This mid-price option offers comprehensive coverage for your rented home but basic coverage for your personal belongings. This means your home will be protected from all risks except those that need add-ons or are specifically excluded, while your possessions are only protected against risks listed in your policy.
The typical North York tenant insurance policy comes with these types of coverage. Here’s a quick description of how each standard inclusion works and what it may cover:
- Liability: In case someone is injured in your rental’s premises or there’s accidental damage to the rental property, this will cover expenses that you may be found liable for. Examples of such expenses covered by tenant insurance are medical bills, the cost of repairs, and legal fees in the event that you’re sued.
- Personal belongings: This coverage protects your personal possessions in your rental property from covered perils like fire, theft, and vandalism. Personal belongings that may be covered include appliances, furniture, and clothing. In the event that your personal belongings are stolen or destroyed or damaged by covered perils, standard tenant insurance will reimburse you up to your policy’s coverage limits.
Home insurance coverage for your belongings can be for actual cash value or replacement cost, depending on your policy’s terms. An actual cash value policy determines the value of your items by taking the cost to replace them, then reducing that cost because of depreciation due to causes like wear and tear. On the other hand, a replacement cost policy covers the cost of restoring your items to their previous condition or replacing them with similar items.
- Additional living expenses: In case your rental property suddenly becomes uninhabitable due to a covered loss, this coverage will help you pay for the cost of temporary accommodations while the property is being restored or repaired.
- Unit improvements: If you’ve made improvements to your rental property like custom fixtures or upgraded appliances, this coverage will protect your investment in case of damage or loss.
Apart from the standard coverage offered by North York tenant insurance policies, there are other types of coverage you can purchase for extra protection for your rented property. These are some of the most common coverage add-ons:
- Claim protector: This add-on allows you to keep your claims-free discount on your quotes after you’ve made your first policy claim.
- Credit and debit card forgery: This additional coverage will offset any financial losses or other damage you suffer because of credit or debit card forgery.
- Earthquakes: This add-on covers damage or losses due to earthquakes.
- Flooding: Protection from flooding typically includes both overland water and sewer back-up coverage. While you may opt to purchase these water-related add-ons separately, you may want to combine them into a flooding protection package because of severe weather and other regional risks.
- Home-based business: If you run a home-based business from the property you’re renting, this add-on covers items and equipment related to the business.
- Identity theft: This covers the cost of replacing crucial documents for identification, such as your birth certificate and driver’s licence.
- Mass evacuation: If the government issues an evacuation order due to an incident like a flood, this add-on covers some expenses incurred during your absence from your home.
- Overland water: Rainfall or thawing snow can cause nearby freshwater and wastewater sources to overflow beyond their typical levels. This add-on covers damage caused by this excess water when it seeps into your property.
- Personal valuables: Standard plans offer limited coverage known as riders for items like jewelry and artwork. This add-on increases the limits for these items in the event of loss or damage.
- Sewer backup coverage: If sewage or wastewater comes up from a main sewer, this add-on will cover the damage and losses caused.
- Watercraft: If you keep watercraft like boats and jetskis on the rental premises, this option will cover the cost of repairs or replacement up to your add-on’s limits.
What Is Not Included in a Typical North York Renters Insurance Policy?
Even if you’ve opted for a highly comprehensive tenant insurance policy, there are some risks that insurers explicitly don’t include as a covered peril. These are called “exclusions” by North York insurance companies.
Here are the most common tenant insurance exclusions:
If your rented home was damaged due to criminal activity, it won’t be covered by your insurance policy.
Most policies exclude this risk, but you can cover earthquake losses and damage as an add-on to a standard policy.
Failure to maintain your home
Damage or losses caused by poor home upkeep (e.g., water damage from frozen pipes, broken bannisters) won’t be covered.
Flooding is typically not covered by a standard policy, but it may be included as an add-on.
Home business activities
Home businesses will need separate business insurance coverage to protect you from rental property or equipment damage.
Because this is considered a preventable risk, most insurers don’t cover damage or loss caused by insects, vermin, and animals.
Mould caused by poor home maintenance is typically excluded by insurance policies. Note that this is separate from mould caused by an insured peril, which will be covered by your policy.
Vacant property risks
Many insurers may void your tenant insurance if you leave the property vacant for over 30 days in a row.
Note that a tenant insurance policy doesn’t cover loss or damage to items that aren’t yours, so it won’t cover a roommate’s belongings or your landlord’s possessions. Also, the list above is by no means an exclusive enumeration of risks typically excluded from a tenant insurance policy in North York. Talk to your tenant insurance provider to see what’s covered by your policy in case of loss or damage.
What Determines the Cost of Renter’s Insurance in North York?
The cost of North York renter’s insurance will vary based on several factors, such as your location, your past claims history, and your rented property’s internal construction. Here are some of the different considerations which may make your renter’s insurance quotes more or less affordable in North York:
The majority of Canadian provinces use your credit score to determine your tenant insurance premium. This is because it’s often perceived that a bad credit score increases the risk of providing tenant insurance, as it increases the odds of late or non-payment of premiums.
If you’re renting a property that’s older, in poor condition, or needs to update systems like heating and plumbing, it may be pricier to insure. This is because older electrical, heating, and plumbing systems increase the risk of certain accidents like fires and water damage from leaks.
If you live in an area prone to natural disasters like earthquakes or flooding, your premiums may be higher. Insurers also tend to charge higher premiums in areas where more residents have filed claims over recent years.
Past Claims History
Simply put, the more claims you have in a certain period, the higher your monthly premiums will be. As a general rule, make sure that the cost of your potential claim is higher than your policy deductible, which is the amount you have to pay before your insurer covers the rest.
Some insurance providers will ask you to disclose the number, type, and breed of any pets you may have, as some pets are considered an additional liability risk.
Whether you’re renting a one-bedroom condo unit, a large basement suite, or a single-detached home, different types of dwellings will be evaluated differently by a North York insurer as each comes with different risks.
Smoking Or Non-Smoking Policyholders
If you’re a non-smoker, an insurer may offer lower premiums as they consider it less likely that a cigarette or other smoking device will start a fire in your rented property.
While conducting business in your home won’t always increase your tenant insurance premiums, this depends greatly on the kind of business you’re running. For example, you can expect to pay more if you’re running a home-based catering company because there is more risk of liabilities or accidents.
Type Of Coverage You Choose
If you get a policy with a higher deductible, this will result in a lower premium. Additionally, the higher the coverage and the more risks you are protected against, the higher your premiums will be.
Your Chosen Insurer
Different insurers may offer varying quotes even for the same type of policy. Coverage costs vary between companies, so it’s important to shop around to find the best deal.
How Much Does Tenant Insurance in North York Usually Cost?
On average, the annual cost of tenant insurance in North York is $400. This means it’s about $100 over the Ontario average renters insurance rate, which ranges between $300 and $350 annually. If you break it down into a monthly fee, tenant insurance protection costs around $300/month.
$400/year is just the average tenant insurance rate, though. Your quotes may be lower or higher depending on factors like what insurance company you work with, your rental home’s location, and what belongings you have in the house. Compare insurance deals from multiple companies with MyChoice to find the best tenant insurance policy that fits your protection needs.
A Snapshot of North York Renters
Is it a good idea to rent a home in North York? Examining a city’s rental statistics is a good way to learn about its rental landscape. North York is a part of the City of Toronto, so it wasn’t surveyed separately in the 2021 Census of Population. However, we can still look at its statistics in the 2016 City Planning Census.
There’s a good balance between renters and owners in North York, with 46% renters and 54% homeowners.
Apartments are very popular in North York. Out of the 254,240 households surveyed, 48% lived in apartments in buildings over five storeys, while 12% and 3% lived in low-rise apartments and duplexes, respectively.
North York is the eighth-most expensive city for rentals in Canada as of June 2023. The average rent for a one-bedroom apartment is $2,192 (up 18.9% from June 2022), while the average for a two-bedroom apartment is $2,711 (up 15.1% from June 2022).
Rental vacancies are also low in North York, with a January 2022 report giving North York a 2.3% vacancy rate. Low supply and high demand make you more likely to encounter expensive rent.
How You Can Get Cheap Tenant Insurance in North York?
If you’re trying to save money on your preferred tenant insurance coverage, here are some important steps to take:
Comparison shopping between different providers will help you find the best rate for your desired policy type. Use an insurance aggregator like MyChoice to get and examine immediate quotes from various North York tenant insurers.
Increase your deductible
You can ask your insurer if you can increase your deductible, a.k.a. the amount you pay before your insurer pays out the claim. Increasing this reduces the risk for your insurer that you’ll submit a claim, so they may offer to lower your premiums.
Bundle with auto insurance
Some companies offer bundled tenant and auto insurance at a good discount for both policies.
Renovate old home systems like wiring and plumbing
Renovating to remove known risks like faulty wiring and old plumbing may help reduce your premiums. Note that you’ll need your landlord’s permission to make certain renovations, so read the fine print of your tenancy agreement and let them know before you start making any changes.
While hefty annual premium payments may be daunting, some insurance providers give you a discount in exchange as it reduces their administrative costs.
Install monitored alarms
The safer you make your rented property against thieves, the higher the chances that you’ll go claim-free. This may convince your insurer to offer lower premiums. Ask your landlord if you can install monitored home security systems to deter break-ins and get immediate notifications of disturbances.
Who Provides Tenant Insurance Quotes in North York?
There are different ways that you can get a tenant insurance quote in North York. Here are the four providers that you can use or contact for tenant insurance rates:
Insurance brokers can represent you as a buyer and get quotes from multiple insurance companies, as well as advice on choosing a policy.
A direct writer is an insurance company that doesn’t have independent agents offering their quotes and policies. Typically, direct writers offer their products through their official websites and/or their call centres.
Insurance agents are independent professionals who can provide quotes and policy information from the companies they work with.
Insurance aggregators are online platforms like MyChoice that allow you to compare rates and coverage options from multiple providers. Because these allow you to input your information and receive quotes from multiple providers in one place, this can save you time and effort.
FAQs About Tenant Insurance in North York
How do I get tenant insurance in North York?
You can get tenant insurance in North York by looking for an insurer that provides this type of coverage. While processes vary between providers, here’s a general guide:
1. Compare providers: If you already have an insurer, ask if they also offer tenant insurance. They may offer to bundle tenant insurance with your existing policy for a discount. Otherwise, you can start comparing quotes from brokers, agents, direct writers, or aggregators to find the best deal.
2. Provide all necessary information for your application: Once you’ve settled on your desired coverage and insurer, you’ll need to fill in vital information such as identification cards and your rental address. Don’t forget to attach any requested additional documents.
3. Review your application and pay: If you’ve reviewed the policy and are satisfied with the terms, pay your first premium through your insurer’s preferred payment channels.
4. Get proof of insurance: After you’ve paid for your policy, your insurer will give you a certificate of insurance. You can now present a copy to your landlord as proof that you have tenant insurance in North York.
What is the cheapest tenant insurance in North York as a student?
The cheapest tenant insurance in North York as a student costs $400. Note that this is an average quote, but your own premiums may differ due to factors such as property type, desired coverage, and the location of your rental. Use MyChoice to compare quotes from different providers to get the best deal for your needs and budget.
Does landlord insurance cover the tenant in North York?
No, landlord insurance doesn’t cover the tenant in North York. Landlord insurance covers damage to the landlord’s property, their belongings (a.k.a. contents coverage), and liability in case someone gets injured on the rented property. Tenants should still get tenant insurance to cover their possessions in the event of loss or damage, and to have liability coverage if they are responsible for damage to the landlord’s property.
Can a landlord ask for tenant insurance in North York?
Yes, a landlord can ask for tenant insurance in North York. Tenant insurance isn’t mandatory to rent property in Canada. However, a landlord may require you to get it as a condition in your lease agreement. Failure to comply with your lease conditions can result in eviction, so it’s best to read your lease’s terms and check if you need tenant insurance.
Can a landlord evict you for not having tenant insurance in North York?
No, a landlord can’t evict you for not having tenant insurance in North York as tenant insurance is not a legal requirement. However, your landlord may evict you if you agreed to get tenant insurance as part of your lease and you fail to do so. Read the conditions of your lease contract carefully, as it’s common for landlords to require tenant insurance.
Is tenant insurance cheaper in North York compared to Toronto?
No, tenant insurance isn’t cheaper in North York compared to Toronto. The average cost of tenant insurance in North York is $400 annually, while the average cost in Toronto is $209 annually. Note that your own premiums may be higher or lower than the city average depending on factors like property size and the value of your possessions.