Canada’s real estate market has been at an all-time high for the past few years, with little sign of slowing down. Although many prospective homeowners are waiting for the real estate “bubble” to pop, many young Canadians have decided to put off buying a property for the time being. Because of this, more and more young people have been looking for rental properties in Canada.

Renting a living space comes with several responsibilities; one of these responsibilities is finding sufficient renters insurance that works with your budget. If you’re new to the world of renters insurance, you may be asking yourself questions like, “how much is renters insurance in Canada?” and “why is renters insurance important?”.

We’re glad you asked!

Continue reading to learn the average cost of renters insurance in Canada, why renters insurance is important and some of the variables that influence the cost of coverage.

What is renters insurance?

Renters insurance (also known as tenant insurance) is a type of coverage that protects policyholders who live in a rented living space, like a highrise or basement apartment.

There are no laws stating that renters insurance is legally required in Canada. That being said, renters should know that landlords do have the ability to require tenants to obtain sufficient coverage before moving into a space.

What does renters insurance cover?

Most renters insurance policies can include the following forms of protection:

• Protects personal items in the rented space from unforeseen damage, theft or loss
• Personal liability coverage
• Additional living expense coverage

Please note that the majority of renters insurance policies have "special limits" on how much they will pay out for the following items:

• Sporting equipment
• Jewelry (necklaces, watches, rings, etc.)
• Collectible items or similar valuables
• Works of fine art
• Items or equipment used for an in-home business

You can speak with your Surex insurance advisor if you’d like to learn more about these limits.

Why is renters insurance important for Canadian tenants?

Renters insurance is an invaluable asset to tenants for two primary reasons: it financially protects your personal belongings if an unforeseen event takes place and causes damage to them and protects for financial future in the event that someone files a lawsuit against you for damages to their person or personal property that you cause.

Having this financial support means that you won’t have to pay for repairs or replacements out of your own pocket. Instead, your renters insurance provider will help you cover the costs.

In turn, you get peace of mind, as you know that you don’t have to tackle the issue by yourself.

Bonus — Click this link to learn more about the importance of getting renters insurance for post-secondary students.

How much does renters insurance cost in Canada?

The tenant insurance average cost in Canada is approximately $23 a month or $276 per year.

This is comparably less expensive than other common forms of insurance, like car and home (averaging out to roughly $150 per month and $75 per month, respectively).

However, it’s important to note that several variables, including your location, influence your tenant insurance cost.

For instance, in Ontario, the tenant insurance average cost is roughly $21 per month or $252 per year in a fire-hydrant protected location (the price can be doubled in non-fire-hydrant protected areas). In contrast, the average price of tenant insurance in British Columbia is slightly higher, sitting at approximately $26 per month or $312 per year.

Why does your location influence the cost of your coverage? Simply put, different occasions are prone to different risks and perils. Using our past example, British Columbia is prone to a variety of natural disasters, like floods and forest fires. Although Ontario does get its fair share of natural disasters, they are not as prevalent. Insurance companies take these variables into account while determining insurance rates.

Now you know the answer to the question, “how much is renters insurance in Canada?”.

What influences the cost of renters insurance in Canada?

As mentioned earlier, the average cost of renters insurance varies from province to province. However, your location isn’t the only factor that can influence the cost of your coverage.

The following factors can also influence the price that you pay for tenant insurance in Canada:

Level of coverage — Your level of coverage will have an enormous impact on the overall cost of your renters insurance. If you opt for an extensive policy with a number of add-ons, then you will most likely pay more than a renter who purchases a basic form of renters insurance.

Size of your deductible — Your insurance deductible is the amount that you pay to your insurance provider when you make a claim. The size of your deductible can impact how much you pay for coverage. If you have a small deductible, you won’t have to pay as much when you submit a claim, but you’ll pay more monthly/yearly. In contrast, if you have a larger deductible, you’ll pay less monthly/yearly but more when you make a claim.

Discounts — Many renters insurance providers in Canada offer a wide variety of discounts for responsible renters. Insurance companies do this as a way to reward policyholders that have done their due diligence to keep their rental space safe.

Type of building — In Ontario, the type of building has a massive effect on price.  The cost of a high-rise building is significantly less than an apartment in a house or a low-rise, non-fire-resistive building.

Fire-hydrant protection — If your location is within 150 meters of a fire-hydrant the policy will be significantly cheaper in annual premium than an apartment in a rural location with no hydrants

Prior insurance history  — No prior insurance history OR past claims or cancellations for non-payment also strongly influence pricing

Save on renters insurance with Surex

Saving on renters insurance is easy when you team up with a Surex insurance advisor.

Our advisors (Surex’s preferred term for insurance brokers) work side-by-side with the top renters insurance carriers in Canada. Having this rapport with Canada’s top renters insurance providers gives us the flexibility and freedom to offer our policyholders some of the most competitive quotes in the industry.

Within ten short minutes, our advisors can provide you with up to ten high-quality quotes that are guaranteed to meet your needs (the number of quotes varies from province to province).

Speak with one of our advisors online or over the phone to get started and start saving as much as 25% on coverage when you bundle your policies with one of our partners.

We look forward to hearing from you!