Tenant insurance세입자 보험 (renter’s insurance)

What is it?

Tenant insurance (also called renter’s insurance) is insurance a renter buys. The landlord’s policy covers the building (walls, roof, pipes), not the tenant’s furniture, clothes and electronics, and not damage the tenant causes to others. Tenant insurance fills that gap.

It has two main parts: your belongings (contents), and liability (your responsibility to pay for damage or injury to others caused by your fault). Ontario’s guide to the standard lease explains these two parts separately.

What does it cover?

Every insurer and product is different. The table shows a typical structure; check your policy for the exact terms.

Coverage limits and the deductible (the amount you pay first in a claim) vary by product. Water damage and sewer backup are often add-ons.

Section 11 of the standard lease: can the landlord require it?

Yes. In section 11, "Tenant’s insurance", of the Ontario standard lease, the landlord and tenant agree whether the tenant must have liability insurance. If the landlord asks for proof of coverage, the tenant must provide it.

Contents insurance is the tenant’s choice. A landlord cannot force it. That is how the government guide explains it.

If the lease requires liability insurance and you do not buy it, you may be in breach of the lease. What happens next depends on the case, so keep the term or renegotiate it in writing with the landlord.

Why do condo landlords insist on it?

In a condo, the condo corporation insures the whole building (Condominium Act, s. 99). But the corporation’s policy has a deductible, and if the damage was caused by the unit owner or the owner’s tenant (lessee), the lesser of the repair cost and the deductible is added to that unit’s common expenses (Condominium Act, s. 105 (2)).

So if a tenant floods the unit below, the landlord (the unit owner) is charged the deductible and will claim it from the tenant. Condo deductibles can be large, which is why condo landlords almost always require tenant liability insurance. Ask the landlord for the deductible amount from the corporation’s policy.

The CAO condo buyers’ guide also explains that the corporation’s insurance does not cover damage beyond the "standard unit", so owners need their own policy. A tenant’s belongings are, of course, outside that too.

How much does it cost?

We do not list prices here because we found no average from an official source. Premiums depend on coverage limits, the deductible, the location and type of home, and your insurance history.

Get quotes from several insurers or an insurance broker and compare. Insuring with the same company as your car is a common way to get a discount. Apply early so coverage starts before your move-in date.

What to look at when choosing

• Contents limit: list your furniture, clothes, electronics and bike, and work out what it would cost to replace everything. Check whether the policy pays replacement cost or actual cash value (after depreciation).
• Liability limit: if the landlord wrote a minimum amount into the lease, you need at least that. Check section 11 and any additional terms.
• Deductible: a lower deductible means a higher premium.
• Add-ons such as water damage, sewer backup or earthquake. In a basement unit, look closely at the water-damage terms.
• Roommates: one person’s policy usually covers only that person’s belongings. Ask whether each roommate needs a policy or whether you can share one.
• Give the landlord the certificate of insurance and send a new one at every renewal.

If you are the landlord

• Mark in section 11 of the standard lease that the tenant must carry liability insurance, and get the certificate before move-in. Check it again at renewal.
• Your own policy should be a rental (landlord) policy, not a regular homeowner policy. Tell your insurer the home is rented out, or a claim could be refused.
• For a condo unit, find out the corporation’s deductible and check that the tenant’s liability limit covers it.

Example