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Average Tenant Insurance Cost in Ontario

Tuesday, 2 February 2021

Perhaps you are researching tenant insurance and trying to decide if it would be beneficial for you and how much it might cost. As you determine your budget in the process of apartment hunting, tenant insurance should certainly be something you consider to protect your finances. So, what is the average tenant insurance cost in Ontario? The cost of tenant insurance is very minimal, yet it can relieve financial stress if something were to happen at your place such as a fire or flood. Let’s look at the average tenant insurance cost in Ontario and how it can benefit you.  

What Is Tenant Insurance?

Tenant insurance, also called renter’s insurance, is a type of property insurance that protects your personal property within the home you are renting. Most basic policies also provide coverage for personal liability and additional living expenses. The major difference between home insurance and tenant insurance is that tenant insurance does not provide coverage to repair or replace the actual building you are renting; that’s the landlord’s responsibility.

Average Tenant Insurance Cost in Ontario

The average tenant insurance cost in Ontario is around $210, or approximately $17.50 per month. There are several factors that affect your rate, which we will discuss, but on average, that is what you can budget for. As you anticipate the cost of tenant insurance, remember that when you purchase a policy, you will select a deductible amount. Consider how your selected deductible will fit into your budget if you have to make a claim. Learn more about how deductibles work here.

Average Tenant Insurance Cost in Ontario Cities­­

Location is something that will affect the average tenant insurance cost in Ontario. Here is a breakdown of the average cost of tenant insurance in various Ontario cities.

City

Average Tenant

Insurance Cost

Barrie $209
Brampton $227
Burlington $199
Cambridge $238
Hamilton $203
Kitchener $191
London $201
Markham $201
Mississauga $194
Oshawa $224
St. Catharines $227
Sudbury $328
Toronto $211
Vaughan $288
Windsor $299

What does Tenant insurance cover?

Considering how affordable the average tenant insurance cost is, you might be wondering what coverage you receive for a policy. Each policy is uniquely tailored to your situation, so you will have to confirm with your insurance provider if you have these coverages, but a typical tenant insurance policy would include:

Personal Liability Coverage. This would help you with legal costs if someone were to sue you. This could be someone injured while visiting your apartment, or someone from another unit in your building.

Contents Coverage insures the replacement or repair of any of your personal property (furniture, clothes, electronics, etc.) that are lost, stolen or damaged in a covered claim. Get a more in-depth understanding of contents coverage in our blog here.

Additional Living Expenses provides financial help if your home was uninhabitable during repairs. This may include hotel costs and other expenses while you are displaced by an insured loss.

What Factors Affect Tenant Insurance?

As we mentioned, the average tenant insurance cost is around $210 per year in Ontario, but there will be some fluctuation based on the many variables insurance companies use in the quoting process.

  • Location of the rental. This includes the city, neighbourhood, proximity to fire services, local crime rates, and environmental factors such as statistical likelihood of flooding or forest fires.
  • Details about the building itself including heating type, square footage, age of the building, and more.
  • Your credit score. A soft credit check is performed during the quoting process and will not impact your credit score.
  • Your claims history. If you have a lot of claims from the past, insurance companies may charge a higher premium because they consider you statistically more likely to make a claim.
  • The amount of personal property you need to insure. This can start anywhere from $40,000 and increase based on what you own. Make sure you calculate accurately based on the current cost to replace your belongings and not the purchase price in the past.
  • The level of liability coverage you want. Usually people opt for $1 million liability, but higher limits may be available.
  • The deductible amount you choose. Generally, a tenant insurance deductible will be around $500 to $1,000. The higher the deductible, the lower your premium will be.
  • Whether you select additional coverages such as sewer backup, earthquake, overland water coverage.

If you have any questions about how these factors impact your insurance rates, a BIG broker can explain these in greater detail!

Is Tenant Insurance Mandatory in Ontario?

No, tenant insurance is not mandatory in Ontario, but it’s perfectly legal for a landlord to require it as a condition on your rental agreement. Even if your landlord doesn’t require you to have tenant insurance, there are many benefits to having a policy at such a small cost.

Are there any discounts for tenant insurance?

Tenant insurance can be used in combination with your auto insurance, saving you even more money! With a multi-line discount as we call it, your tenant policy could end up paying for itself, or being even cheaper when combined with your car insurance.

 

Because the average tenant insurance cost is so reasonable, it’s really worth the investment to have that peace of mind knowing that your personal belongings are covered. If you are ready to purchase a tenant insurance policy today, our BIG brokers are ready to help you find the best price for your situation. Click here to get started on a no-obligation quote!