While your landlord may have property insurance for the building or house, they may still require you to have tenant insurance to protect your personal possessions and liability in your apartment. You might wonder, why do they care if they’re already protected?
To understand the advantages of tenant insurance for landlords in Canada, you must first understand the difference between renters’ insurance and landlord insurance.
The key thing to remember is that renters’ insurance covers you, the tenant, while landlord insurance covers the homeowner or property owner. This is clearly outlined below, which explains the differences in protection.
By requiring tenant insurance, homeowners aim to fill coverage gaps, manage liability risks for both parties, and reduce the likelihood of disputes if something happens to the tenant, their belongings, visitors, or the landlord’s property.
Table of Contents
Protection Comparison
Renters’ Insurance
- Personal Possessions: Protects the tenant’s furniture, clothing, and other belongings.
- Physical Structure: Not covered
- Permanent Fixtures: Not covered
- Liability: Protects the tenant if they accidentally damage the property or a visitor is injured in the unit.
- Temporary Living Expenses: Covers costs like hotel stays if the rental becomes uninhabitable due to a covered incident.
A Landlord Requiring Tenant Insurance
A landlord can require you to obtain tenant insurance if it was included in your lease agreement when you signed.
Even though tenant insurance is not legally required in Canada, a landlord can make it a rental condition by adding it to your lease. By signing the agreement, you agree to follow its terms, including obtaining tenant insurance if it is listed. In this case, you must provide proof of coverage before moving in.
If you do not meet this requirement, your landlord may take action against you. This may include providing written warnings or pursuing legal steps that could lead to eviction.
For example, in 2019, a landlord in Quebec asked the rental board to enforce a lease that required the tenant to carry renter’s insurance with liability coverage. The board sided with the landlord, stating that the tenant had a responsibility under the signed contract and should have obtained coverage after reviewing the lease.
Getting Evicted for Not Having Renters’ Insurance
This is only possible if insurance was listed as a requirement in your lease and if the landlord follows proper legal procedures. Here’s how it works:
If renter’s insurance is not stated in your lease, the 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 renter’s insurance is a condition in your lease, not having it could be considered a breach of contract. This could lead to eviction proceedings, though the process is not immediate or automatic. It must follow a formal legal path that includes notice and waiting periods.
In provinces like Ontario and Quebec, landlords must apply to a tribunal before pursuing eviction for this type of lease violation:
- Ontario: Landlord and Tenant Board (LTB)
- Quebec: Tribunal Administratif du Logement (TAL)
Before taking legal steps, landlords often provide written notice and give tenants the opportunity to obtain renter’s insurance before escalating the matter.
