Tenant Insurance: Average Cost in Canada - APOLLO Insurance (2024)

Learn about the importance of tenant insurance for tenants in Canada, the average cost by province, and how to find the best policy to safeguard your personal property and liability.

Tenant insurance is one of the most crucial things to think about when renting a property in Canada. Renting a home comes with its fair share of responsibilities. Tenant insurance, which is sometimes ignored, offers renters and their possessions vital protection. This post will examine the typical cost of renter insurance in Canada, the variables that influence its cost, and advice on selecting the best coverage for your need.

What is Tenant Insurance?

Tenant insurance, also known as renter’s insurance, is a type of insurance policy designed to protect renters and their personal property. It typically covers three main areas:

• Personal property: This coverage guards against theft, damage, and loss from calamities like fire, vandalism, or water damage to your possessions, which include clothes, devices, and furniture.

• Liability: Liability coverage can assist with paying for court expenses and settlements in the event that someone is hurt on your rental property or if you inadvertently cause damage to someone else's belongings.

• Additional living expenses: This coverage can assist with covering the cost of additional living expenses and interim housing if a covered occurrence renders your rental unit unusable.

The idea that the tenant's personal belongings will be covered by the landlord's insurance coverage is a frequent one. However, that isn't the case. Usually, a landlord's insurance only protects the structure; it does not cover the contents of the rented space.

Factors Affecting Tenant Insurance Cost in Canada

Several factors can influence the cost of tenant insurance in Canada. Some of the most common factors include:

• Location of the rental property: Urban areas with higher crime rates or regions prone to natural disasters may have higher insurance premiums.

• Value of personal belongings: The more valuable your possessions, the higher the coverage limit you’ll need, which can increase the cost of your policy.

• Type of coverage and policy limits: Choosing higher coverage limits or additional endorsem*nts for specific items will raise your premium.

• Deductible amount: A higher deductible can lower your premium, but it means you’ll have to pay more out of pocket in the event of a claim.

• Insurance provider: Different insurance companies offer different rates, so it’s essential to shop around for the best deal.

Average Cost of Tenant Insurance in Canada

The average cost of tenant insurance in Canada varies by province. Generally, you can expect to pay between $15 and $30 per month for a basic policy. Here’s a breakdown of average costs by province:

• British Columbia: $20 – $35 per month

• Alberta: $15 – $25 per month

• Saskatchewan: $15 – $25 per month

• Manitoba: $15 – $25 per month

• Ontario: $20 – $30 per month

• Quebec: $15 – $25 per month

• Atlantic Provinces: $15 – $25 per month

It’s important to note that tenant insurance costs are typically lower than homeowners insurance costs, as tenant policies do not cover the building itself.

How to Choose the Right Tenant Insurance Policy

To select the best tenant insurance policy for your needs, follow these steps:

• Assess your coverage needs: Make a list of your belongings and their value to determine the coverage limits you require.

• Research insurance providers and their reputation: Look for customer reviews and financial ratings to find a reliable insurer.

• Read policy documents carefully: Understand the coverage, limitations, and exclusions of the policy before signing up.

• Consider endorsem*nts for additional coverage: If you have high-value items or specific risks, consider adding endorsem*nts to your policy for extra protection.

APOLLO offers tenant insurance policies designed to protect renters in Canada. Get your free quote in less than a minute and we’ll send your policy documents right to your inbox.