Living in an apartment can offer a variety of perks, from reduced maintenance responsibilities to the freedom to relocate without the long-term commitment of homeownership. However, it can also come with its share of risks – risks that tenant insurance can help protect you from.
Since the cost of apartment insurance is a common concern, this blog will provide you with the answer, along with a simple exercise to do while apartment hunting. This exercise will help ensure that you can comfortably afford the full cost of the apartment, including insurance, and not just the rent.
How the Price of Insurance Is Calculated for Apartments
While every insurer has a slightly different way of calculating the cost of insurance for apartments, there are some factors about yourself and your apartment that tend to have a greater impact on the final price than others. These include:
- Address of your apartment building
- Location of your apartment within the building (ex. ground floor vs. upper floors)
- Building characteristics (ex. age, construction materials)
- Building occupancy (ex. number of apartments)
- Security features (ex. monitored alarm system, surveillance camera)
- Distance from apartment building to fire hydrants and stations
- Value of your personal belongings
- Whether you have pets
- Optional coverages
- Your deductible
- Liability coverage amount
- Your credit score
- Your insurance history
How Much Is Apartment Insurance?
Apartment insurance can be surprisingly affordable, with premiums at YouSet costing as little as just $12 a month. On average though, YouSet users in Ontario pay around $27 a month, while those in Quebec pay about $18 for tenant insurance.
| Province | Cost per month | Cost per year |
| Ontario | $27 | $324 |
| Québec | $18 | $216 |
Unlike the insurance that landlords or homeowners purchase, tenant insurance is generally much cheaper. This is because tenant insurance doesn’t cover the physical structure or permanent fixtures of the apartment – those are protected by your landlord’s policy. Instead, your tenant insurance covers your personal belongings inside the apartment, covers additional living expenses if the apartment becomes uninhabitable, and offers liability protection if you’re held responsible for injuring someone or damaging their property.
Is Apartment Insurance Mandatory in Canada?
While apartment insurance is not legally required in Canada, many landlords and property management companies include it as a condition in the lease agreement. By signing the lease, you are contractually obligated to comply with its terms, which may include buying tenant insurance. Therefore, you should always double-check your contract to understand your responsibilities before signing on the dotted line.
Check Before You Rent: Exercise for Renters
When apartment hunting, it’s easy to focus on rent and utilities, but there’s one important factor many renters overlook: insurance. This is especially crucial to consider before signing a lease, particularly if your landlord or property management company requires it.
Fortunately, there’s a simple exercise you can do while apartment hunting to determine whether the place you’re considering fits your budget, including insurance costs.
Step 1: Get a tenant insurance quote
Find an insurance company or broker that offers tenant insurance (also referred to as renters insurance) and allows you to get an online quote. For instance, YouSet is a digital broker, which means you can compare multiple Canadian insurers at once and find the one that offers the best price.
Step 2: Answer questions about yourself and the apartment
Provide some basic details about yourself (age, insurance history, etc.) and the apartment (address, floor, location in the building, etc.). If you’re unsure about some of the building-specific questions, you may be able to find the answers in the apartment listing or on the building’s website, if available.
Step 3: Customize your coverage
When prompted, choose the types of coverage you want/are required to have, the coverage limits you’re comfortable with, and the deductible you’re willing to pay if you ever need to file a claim. For example, many landlords and property management companies require a higher personal liability coverage limit – often $2 million instead of $1 million – due to the potential risks and extent of damages that can occur in apartment settings.
Step 4: Estimate your utility costs
Utilities, such as electricity, water, and heating, can significantly impact the affordability of an apartment. If utilities are not included in the rent, a quick online search can often provide the average utility costs in your province. Also, many utility providers offer online calculators to help you estimate costs, such as these electricity calculators from Hydro-Québec and Hydro One in Ontario.
Step 5: Calculate all your other monthly expenses
In addition to rent and utilities, make sure to factor in other monthly expenses like groceries, transportation, and any subscriptions or memberships you might have. Using a monthly expenses budget calculator can help ensure you don’t overlook any costs and ensure you get a more accurate picture of your monthly financial commitments.
Step 6: Add it all together
Once you add the cost of tenant insurance, rent, your estimated utility expenses, and all other monthly costs together, you can determine whether the apartment is a financially viable option or if you need to keep looking. You want to be sure you’re not overextending yourself and that you can comfortably afford the entire cost of the apartment, not just the rent.
Next Steps: Get Cheaper Apartment Insurance with YouSet
While the average prices above give you a general idea of what to expect, the only way to know for sure is to get a tenant insurance quote. Thankfully, YouSet makes it easy. Our algorithms will automatically search our network of top Canadian insurers to find the best price, and we’ll apply exclusive discounts whenever possible to help you save even more and get cheaper apartment insurance.
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