Is tenant insurance mandatory in Ontario?

Whether you are moving out for the first time or consider yourself a veteran renter, moving into a new rental quickly adds many things to one’s to-do list – packing boxes, hiring a moving company, and buying furniture for the new place. It’s no wonder that often, tenant insurance doesn’t make the list. Though at first glance it may seem like little more than an added expense, tenant insurance is actually quite affordable and is highly recommended. This article provides a brief outline of why you might consider tenant insurance.

What is tenant insurance? What does it cover?

Tenant insurance (also referred to as content insurance or renter’s insurance) has many similarities to a home insurance policy, but one key difference is that it does not cover the building or house itself. Insuring the building is the responsibility of the owner. Tenant insurance covers liability (protection in the case of accidents that cause bodily harm), and the contents of the home, such as furniture, electronics and clothing. If there are valuable items in the home, such as jewelry or fine art, these can be added to a policy for additional coverage. Renter’s insurance also covers the cost of a hotel, clothing and food if damage to your home makes it uninhabitable for a time.

Is tenant insurance a requirement?

Tenant insurance is not mandatory in Ontario. That being said, it is a wise investment for a number of reasons. As was stated above, renter’s insurance covers the cost of replacing or repairing your belongings in the case of accidental damage. Did you know that any damage to the contents of your home, even accidental damage, is your responsibility, not the responsibility of your landlord? This is also true in the case of another tenant in your building causing accidental damage to your property. Additionally, though it is not mandated across the board provincially, some landlords will require that tenants purchase some form of coverage upon moving in. Basic coverage usually starts around $20 per month, bearing in mind that there is a deductible that must be paid before the insurance starts paying.

Is tenant insurance right for me?

Tenant insurance is a good idea for anyone renting their home, as it can provide you peace of mind and save you serious money in the case of damage to your home. It doesn’t have to be a financial burden, either. You may be eligible to bundle your rental insurance with your auto insurance and save some money! Contact your Regal Insurance Broker today to learn about the best coverage option for you!