Landlords Insist on Renters Insurance – Here’s Why

Whether you’re moving into your very first apartment or have been renting for years, you might find that your landlord requires you to have tenant insurance. Even though they have landlord insurance, many landlords still expect tenants to be covered while living in their rental unit. 

In this blog, we’ll break down the difference between landlord and tenant insurance, whether it’s legally required, and if you can actually be evicted for not having it.  So, if your landlord insists on renters insurance, here’s why.

Key takeaways

While tenant insurance isn’t legally mandatory in Canada, landlords can make it a condition of your lease. Their insurance covers the building, not your personal belongings or liability. By requiring tenant insurance, landlords help close coverage gaps, manage risks, and reduce the likelihood of disputes if an unexpected event occurs.

Why do landlords insist on tenant insurance?

While your landlord likely has property insurance for the building or house itself, they may still require you to have tenant insurance to cover your personal belongings and liability in the unit you’re renting. You might wonder, why do they care if they’re already covered?

To understand the benefits of renters insurance for landlords, you need to understand the difference between renters insurance and landlord insurance.  The main thing to remember: renters insurance protects you, the tenant, while landlord insurance protects the landlord or property owner. This is clearly outlined in the table below, which highlights the difference in coverage.

By requiring tenant insurance, landlords aim to fill coverage gaps, manage liability risks for both parties, and reduce the chances of disputes if something happens to you, your belongings, a visitor, or the landlord’s property.

Coverage	Renters insurance	Landlord insurance
Personal belongings	Covers tenant’s furniture, electronics, clothing, etc.	Covers landlord’s appliances or furniture; otherwise, not covered
Physical structure	Not covered	Covers the building, walls, roof, etc.
Permanent fixtures	Not covered	Covers items like cabinets, built-in appliances, and plumbing
Liability	Covers the tenant if they unintentionally damage the property or a visitor gets injured in the unit	Covers the landlord if a tenant or visitor is injured due to property conditions
Costs if the rental is uninhabitable due to a covered event	Covers temporary living expenses (ex. hotel stay)	Covers lost rental income during this period

Can a landlord make you get tenant insurance?

Yes, a landlord can “make you” get tenant insurance if it was part of your lease when you signed. 

Although tenant insurance isn’t legally required in Canada, your landlord can still make it a condition of renting by including it as a clause in your lease agreement. By signing your lease, you agree to follow its terms, including having tenant insurance if it’s required. In this case, you should expect to show proof of coverage before moving in. 

If you ignore this condition, your landlord has the right to take action. This can include issuing warnings or, in some cases, pursuing legal action to evict you. 

For example, in 2019, a Quebec landlord asked the rental board to enforce a lease that required the tenant to have tenant insurance with liability coverage. The board sided with the landlord, stating that “the lessee had a duty, when he signed the agreement, requiring him to take out an insurance policy and to do research in order to make an informed decision to enter into a lease.”  

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Can you be evicted for not having renters insurance?

Potentially, but only if it was a condition in your lease, and if the landlord follows the proper legal steps.

Here’s how it works: If renter’s insurance isn’t listed as a requirement in your lease, your landlord cannot evict you for not having it. Rental agreements are legally binding, and landlords can only enforce what’s written in the contract. 

If renters insurance is a requirement in your lease, not having it could be considered a breach of contract. This might lead to eviction proceedings, but it’s not immediate or automatic. It’s a legal process that requires formal notice and time.  In most provinces, including Ontario and Quebec, landlords must go through a governing body to pursue an eviction for lease violations. 

• In Ontario: the Landlord and Tenant Board (LTB)
• In Quebec: the Tribunal administratif du logement (TAL)

Before all that, though, your landlord will likely give you written notice and an opportunity to get renters insurance before taking any legal action.   

Next steps

Whether your landlord requires renters insurance or not, it’s a smart move to have it. No matter how responsible you are, things can go wrong, and it’s always better to be protected than stuck covering the costs yourself. 

With YouSet, you can get a tenant insurance quote in just 4 minutes. Policies start at just $12/month and are fully customizable, giving both you and your landlord peace of mind with affordable, reliable coverage.