Primarily due to the high cost of homeownership, almost half of those who live in Toronto rent their homes. The rental market is competitive, with a low vacancy rate of 1.7% for purpose-built buildings and just 1.1% for apartments.
Despite the challenges of renting in Toronto, plenty do. And the main reason for this is that renting can be convenient and affordable. Also, since you don’t own the property, you don’t have to worry about maintenance and repairs, even in the worst-case scenario.
With that said, your landlord’s insurance only extends so far. If your belongings are damaged (or if you damage someone else’s) you’ll be out of pocket.
Fortunately, tenant insurance can help you cover the cost of replacing or repairing your assets and shield you from the financial blow of an insured peril. Learn more about how renters insurance in Toronto works, what it can do for you, and how you can get the best policy for your budget.
Why Do I Need Tenant Insurance in Toronto?
While tenant insurance isn’t always mandatory in Toronto, 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 Toronto tenant insurance:
How Does Tenant Insurance in Toronto Work?
There are three types of tenant insurance policies that you can buy in Toronto. Here’s a basic overview of each type:
What Is Not Included in a Typical Toronto 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 Toronto insurance companies.
Here are the most common tenant insurance exclusions:
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 Toronto. 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 Toronto?
The cost of Toronto 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 Toronto:
How Much Does Tenant Insurance in Toronto Usually Cost?
Tenant insurance in Toronto usually costs $209/year, which translates to monthly premiums of $17.50. This is lower than the average Ontario rate of $300 to $360/year or $25 to $30/month. For a pretty affordable rate, you can get a Toronto tenant policy that protects your personal belongings.
With that said, it’s important to remember that these are just average figures. How much insurers will actually charge you depends on a variety of factors, such as where in Toronto you live, what kind of dwelling you rent, and what kind of items you need to insure. Get personalized quotes and compare offers with MyChoice to find the best tenant policy in Toronto for your needs.
A Snapshot of Toronto Renters
According to the 2021 Census of Population, almost half (48.1%) of Toronto residents, translating to 557,970 households, are renters. High-rise apartments are the second-most popular housing structure, comprising a massive 46.7% of all dwellings. The 2023 rental report by the Canada Mortgage and Housing Corporation found that the ratio of completions to rentals for apartments has maintained at around 36%.
The vacancy rate of both purpose-built buildings and apartments both fell in 2023 to 1.7% and 1.1% respectively, despite a record number of apartments being added to the market. Meanwhile, the average rent for two-bedroom homes rose 6.5% to $1,765, while two-bedroom condos cost $2,671.
The CMHC attributes this to an increase in interprovincial migration, post-pandemic rental demand (especially as students return to school), and employment recovery for the youth – a group that accounts for most of the rental households in the GTA.
A lack of supply combined with rising mortgage costs are turning many away from homeownership. As more people rent for longer, we’ll likely see more pressure on the rental market in Toronto.
How You Can Get Cheap Tenant Insurance in Toronto?
If you’re trying to save money on your preferred tenant insurance coverage, here are some important steps to take:
Who Provides Tenant Insurance Quotes in Toronto?
There are different ways that you can get a tenant insurance quote in Toronto. Here are the four providers that you can use or contact for tenant insurance rates:
FAQs About Tenant Insurance in Toronto
How do I get tenant insurance in Toronto?
You can get tenant insurance in Toronto 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 Toronto.
What is the cheapest tenant insurance in Toronto as a student?
The cheapest tenant insurance in Toronto as a student costs $209. 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 Toronto?
No, landlord insurance doesn’t cover the tenant in Toronto. 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 Toronto?
Yes, a landlord can ask for tenant insurance in Toronto. 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 Toronto?
No, a landlord can’t evict you for not having tenant insurance in Toronto 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.
Do you need renters insurance in Toronto?
While renters insurance is not mandatory in Toronto, there may be some cases where you’ll need it. It’s common for landlords to require it as part of your lease, so you may find it difficult to secure one without a policy. Insurance can also be beneficial when the unexpected happens, such as if another tenant damages your property or you accidentally damage the building.
How quickly can I get renters insurance in Toronto?
You can get renters insurance pretty quickly in Toronto. In many cases, you can get a personalized quote in as fast as 15 minutes from submitting your information. Upon buying the policy, you can choose the effective date, which means you can get insured immediately or delay your coverage.
Keep in mind that some insurers won’t effectuate a policy if the start date is more than a few months away. If you can’t buy the policy you want just yet, do some of the legwork in the meantime – you’ll be much more prepared when the signing date comes.
How do I choose the right tenant insurance in Toronto?
You can choose the right tenant insurance in Toronto for you by assessing your needs and comparing quotes from different providers.
Different renters have different needs, so what works for someone else may not work for you. To determine the best policy for you, ask yourself the following questions:
– Do I have any special assets that I want to insure (e.g., textbooks, fine art, equipment for at-home business)?
– Is my home prone to natural disasters not covered by a typical tenant insurance policy?
– Do I have any pets that could cause damage to my or other residents’ belongings?
– Will identity theft leave me financially vulnerable?
– How much do I want to pay in premiums versus how much do I want to pay in deductibles?
– Do I want to be reimbursed for the cost of replacement or the actual cash value?
How much can I afford to spend on insurance every month?