Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Tenant insurance in Ontario covers your belongings, your personal liability if you injure someone or damage property, and extra living costs after a covered loss. Under Ontario’s standard lease, a landlord and tenant can agree that the tenant must carry liability insurance and show proof, but contents insurance is the tenant’s choice. Your landlord’s policy does not cover your things.
This guide is for renters in Toronto and across Ontario, and for landlords who rent out a condo, basement or house. You will learn what tenant insurance covers, what your landlord’s policy does not, whether a landlord can require it under Ontario’s standard lease, what it roughly costs, and how to choose a good policy.
What is tenant insurance?
Tenant insurance, also called renter’s insurance, is a home insurance policy for people who rent. It does not insure the building. It insures you: your belongings, your legal liability to other people, and some of your extra costs if you have to move out for a while after a covered loss.
The Insurance Bureau of Canada (IBC) describes three main parts:
- Contents. Your belongings in the unit, and in many policies while you are away from home. Contents can be insured against all risks or only against named risks.
- Personal liability. If someone successfully sues you for an injury or for damage you caused, this pays what you owe plus your legal defence costs.
- Additional living expenses. If a covered loss makes your unit unliveable, this helps pay extra costs, such as a hotel, within the policy limit.
What does tenant insurance cover in Ontario?
Every insurer writes its own policy, so wording differs. As one real example, here is how RBC Insurance describes its comprehensive tenant policy online.
| Coverage part | What it does | Example from one insurer (RBC Insurance) |
|---|---|---|
| Contents | Replaces or repairs your belongings after a covered loss | All-perils cover; amount set per policy |
| Belongings away from home | Covers items temporarily outside your unit | Covered; property in your vehicle up to 100% of contents limit |
| Additional living expenses | Hotel, meals and moving costs while repairs are done | Up to 40% of contents coverage |
| Personal liability | Injury or damage you accidentally cause to others | $1,000,000 to $2,000,000 |
| Voluntary medical payments | Small medical costs for a guest, without a lawsuit | $5,000 |
| Deductible | What you pay first on a claim | $1,000 standard |
Source: RBC Insurance tenant insurance page, checked November 2026; IBC, Types of home insurance coverage. Other insurers’ limits differ. Always read your own policy wording.
Does my landlord’s insurance cover my belongings?
No. Your landlord’s policy covers the landlord’s building and the landlord’s own liability. Insurers are blunt about this. RBC Insurance says a landlord’s insurance will not pay for a tenant’s clothes, furniture or electronics after a fire or flood. Sonnet makes the same point: a landlord’s policy does not give tenants contents or liability coverage.
The same is true in a condo. The condo corporation’s policy covers the building and common areas. The unit owner’s policy covers the owner’s improvements and liability. Neither one covers the tenant’s belongings or the tenant’s liability. If you are a landlord, my guides on landlord insurance in Ontario and condo insurance and the deductible explain your side.
Can a landlord force you to get renters insurance in Ontario?
A landlord can make liability insurance part of the lease, if you both agree to it. Ontario’s standard lease, which is required for most residential tenancies signed on or after 30 April 2018, has a section on tenant insurance (section 11). According to the Ontario government’s guide to the standard lease:
- The landlord and tenant can agree that the tenant must carry liability insurance.
- If the landlord asks for proof of that coverage, the tenant must provide it.
- Contents insurance is up to the tenant. The guide says it is the tenant’s choice whether to buy it.
So the honest answer is: a landlord can require liability coverage as a lease term you sign, but the standard lease treats contents coverage as optional. In practice, most tenant policies bundle both together, so meeting the liability requirement usually gets you contents cover too.
Two limits apply to any lease term. The guide says a lease cannot take away a right or responsibility under the Residential Tenancies Act, 2006, and any extra term that tries to do so is void. And a landlord cannot evict anyone on their own. Disputes go to the Landlord and Tenant Board, and only the Court Enforcement Office (the sheriff) can enforce an eviction order.
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Why do tenants need liability coverage?
Because tenants are responsible for damage they cause. The Landlord and Tenant Board’s own guidance says tenants must repair or pay for undue damage, meaning damage beyond normal wear and tear, caused by them or their guests. Landlords can also apply to the Board to recover damage costs from a former tenant who moved out on or after 1 September 2021.
Think about a kitchen fire, an overflowing bathtub or a washing machine hose that bursts. In a condo or a house with a basement suite, the water can reach the units below. Without liability coverage, the bill for damage to other people’s property could land on you. My guide to what happens when a tenant damages a unit covers the landlord’s process at the Board.
Liability coverage also follows you. RBC says its tenant liability cover applies if you accidentally injure someone or damage their property at home or anywhere in the world.
How much does tenant insurance cost in Ontario?
There is no reliable published average for Ontario as of November 2026. Industry groups such as IBC do not publish one, and the figures you find online come from individual insurers or quote sites using their own samples.
The clearest dated figure I could verify is from Sonnet, which reports a median tenant insurance premium of $382 a year across Canada, based on its own policies as of February 2024. That is one insurer’s customers across the whole country, not an Ontario average, so use it only as a rough reference point. It works out to about $32 a month. For comparison, TRREB reported an average GTA one-bedroom condo rent of $2,273 a month in Q2 2026. If you are weighing renting against buying, my renting now, buying later timeline helps you plan.
What actually drives the price:
- Where you live and the type and age of the building.
- How much contents cover you choose, and whether it is all-risks or named-perils.
- Your liability limit and your deductible.
- Your claims history, and, with some insurers, personal factors such as age or credit.
- Optional water cover, such as sewer backup, which matters for basement units.
What does tenant insurance usually not cover?
- The building itself. Walls, floors, built-in fixtures and the roof are the owner’s responsibility.
- Sewer backup and overland flooding, unless you add optional coverage. IBC says sewer backup cover pays to replace and decontaminate contents after a backup, and it is an optional add-on.
- Earthquake, which is excluded from standard policies.
- High-value items above special limits. IBC says items such as jewellery, fine art and collections have specific coverage limits, so list them separately if they are worth more.
If you rent a basement apartment, ask specifically about sewer backup coverage for your contents. A basement is where backup water arrives first, and a standard tenant policy may not include it. Also ask how your policy values a claim, because that changes what you get for an older laptop or sofa.
How do you choose the best tenant insurance in Ontario?
The best policy is the one that fits your stuff and your building, not the cheapest one. Use this checklist when you compare quotes:
- Add up your belongings. Walk through each room and list what it would cost to replace. Most people underestimate.
- Pick a liability limit. Sonnet recommends at least $1 million. Check whether your lease names a minimum.
- Check additional living expenses. Is it a percentage of contents, a dollar cap or a time limit?
- Ask about water. Sewer backup and overland water are often optional.
- Compare the same deductible across quotes so the prices are comparable.
- Ask about roommates. Find out whether a roommate is covered under your policy or needs their own.
IBC notes that brokers compare several insurers, while agents represent one. Either can help you set the right limits. Tell the insurer about anything unusual, such as a home business run from your unit, because IBC lists home businesses among the features insurers consider when pricing a policy.
When I help a landlord client lease a condo, we usually ask for proof of tenant liability insurance before the keys are handed over, and we write the requirement clearly in the lease’s additional terms. For tenants, my advice is simple: buy it even if your lease does not require it. A single kitchen fire or water leak can cost far more than years of premiums, and the liability cover protects you anywhere, not just at home.
What to do next
- Read section 11 of your Ontario standard lease to see whether liability insurance is required.
- Make a quick inventory of your belongings with photos and rough replacement costs.
- Get two or three quotes with the same contents limit, liability limit and deductible.
- Add sewer backup cover if you live in a basement or ground-level unit.
- Send proof of coverage to your landlord if asked, and set a reminder to renew each year.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Can my landlord make renters insurance mandatory in Ontario?
A landlord can require liability insurance only if it is an agreed term of the lease. Section 11 of Ontario’s standard lease lets the landlord and tenant agree that the tenant must have liability insurance, and the tenant must show proof if asked. The Ontario government’s lease guide says contents insurance is the tenant’s own choice.
What is covered by renters insurance in Ontario?
Ontario tenant insurance usually covers three things: your belongings (contents), your personal liability if you accidentally injure someone or damage their property, and additional living expenses if a covered loss forces you out of your unit. It does not cover the building. Limits, deductibles and optional water coverage vary by insurer, so read your policy.
How much is tenant insurance in Ontario?
There is no reliable published Ontario average as of November 2026. Sonnet reports a median of $382 a year for its own tenant policies across Canada, as of February 2024, which is about $32 a month. Your price depends on location, building type, contents and liability limits, deductible, claims history and optional water coverage.
Does my landlord’s insurance cover my belongings in Ontario?
No. A landlord’s insurance in Ontario covers the landlord’s building and the landlord’s own liability, not a tenant’s belongings. Insurers such as RBC and Sonnet state that a landlord’s policy will not pay for a renter’s clothes, furniture or electronics, or protect the renter from lawsuits. You need your own tenant policy for that.
Is tenant insurance mandatory in Ontario?
No Ontario law requires every tenant to carry insurance. It becomes required only if your lease says so. Ontario’s standard lease, used for most tenancies signed on or after 30 April 2018, lets the landlord and tenant agree that the tenant must carry liability insurance. Contents insurance remains optional under the lease.
Can I be evicted for not having tenant insurance in Ontario?
A landlord cannot evict you on their own. In Ontario, a landlord must apply to the Landlord and Tenant Board for an eviction order, and only the Court Enforcement Office (the sheriff) can enforce it. If your lease requires liability insurance and you do not have it, get advice from a legal clinic and buy a policy quickly.
Does tenant insurance cover water damage to the unit below?
Usually, under the personal liability part, if you are legally responsible for the damage. Ontario tenants must repair or pay for undue damage they or their guests cause, according to the Landlord and Tenant Board. Liability coverage can pay for damage to other people’s property, such as a neighbour’s unit, up to your policy limit.
Does tenant insurance cover sewer backup in a basement apartment?
Not unless you add it. The Insurance Bureau of Canada says sewer backup coverage is optional and pays to replace and decontaminate contents after a sewer or drain backup. Tenants in Ontario basement or ground-floor units should ask for this endorsement and check its dollar limit when buying a policy.
How much liability coverage should a tenant have in Ontario?
At least $1 million is a common recommendation. Sonnet recommends a liability limit of at least $1 million, and RBC Insurance offers $1 million to $2 million on its tenant policy. Check your Ontario lease too, because a landlord may set a minimum liability amount as an agreed term.
Sources
- Ontario: Guide to Ontario’s standard lease
- Insurance Bureau of Canada: Types of home insurance coverage
- Insurance Bureau of Canada: How home insurance rates are set
- Insurance Bureau of Canada: How to buy home insurance
- Tribunals Ontario: Landlord and Tenant Board FAQs
- RBC Insurance: Tenant insurance
- Sonnet: Tenant insurance
- TRREB Rental Market Report, Q2 2026
Related reading
- Average Home Insurance Cost in Toronto and Ontario (2027)
- Basement Flooded? What to Do in the First 48 Hours (Toronto)
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.