Can a Landlord Require Tenant Insurance?

Tenant insurance used to be a nice-to-have. Today, many landlords make it a condition of handing over the keys. Renters often ask whether that demand is legal. 

Across Canada, the short answer is yes if the lease spells it out. No province forces every tenant to carry insurance, yet residential tenancy laws let landlords include the clause. 

This blog explains the legal basis, outlines why landlords rely on the requirement, and shows both parties how to comply with minimal hassle.

Related Article: What Does Landlord Insurance Cover

Is Tenant Insurance Legally Mandatory?

Provincial statutes do not impose a blanket insurance obligation on renters. Instead, the duty arises from contract law: once a tenant signs a lease that contains an insurance clause, the promise becomes enforceable. Failure to keep that promise can lead to notice of termination and, ultimately, eviction, similar to unpaid rent.

Why Landlords Add the Clause

Even a small kitchen fire can trigger tens of thousands of dollars in repairs, displacement costs, and legal claims. Requiring tenant insurance helps by:

• Liability protection – covers bodily injury or property damage caused by the tenant, shielding the landlord from third-party lawsuits.
• Contents coverage – lets tenants deal with their insurer when personal belongings are destroyed, avoiding disputes with the landlord.
• Loss-of-use coverage – pays for hotel bills after an insured loss, so tenants are not pressuring the landlord for temporary housing.
• Lower building premiums – insurers often give property owners a better rate when all units are insured.

Related Article: Liability Insurance: What It Covers and Why Your Business Needs It

Province-by-Province Snapshot

The core rule — contractual enforcement — applies everywhere, yet each province uses its own forms and notices. Below is a quick guide without the clutter of statutory jargon.

Ontario

• Landlords may require insurance if the lease states the condition.
• A tenant who refuses can receive an N5 notice for violation of terms; the landlord may apply to the Landlord and Tenant Board for eviction.
• The clause cannot force tenants to buy from a specific broker or insurer.

British Columbia

• An insurance clause is an acceptable “additional term.”
• If the tenant ignores the requirement, the landlord may issue a one-month notice for cause.
• The term must be clear, unambiguous, and consistent with the Residential Tenancy Act.

Alberta

• The Residential Tenancies Act lets landlords add any reasonable condition, including tenant insurance.
• Breach of that promise is a default and can justify ending the tenancy.
• The province does not set a minimum coverage amount; most landlords ask for at least $1 million in liability.

Québec

• Tenant insurance is not required by statute, but a lease clause is enforceable.
• Landlords can apply to the Tribunal administratif du logement if the tenant fails to comply.
• Surveys suggest roughly 40 percent of Québec tenants remain uninsured, so landlords often make the clause explicit.

Tip: Nowhere in Canada can a landlord collect a fee for arranging coverage, as that could breach consumer-protection and insurance-licensing rules.

Related Article: What Does Tenant Insurance Cover in Ontario?

What a Standard Tenant Policy Covers

Most tenant policies bundle three protections:

1. Personal Property – furniture, clothing, electronics, and other belongings, usually on a replacement-cost basis.
2. Personal Liability – legal defence and damages if the tenant is sued for accidental injury or property damage.
3. Additional Living Expenses – hotel, food, and moving costs while the unit is uninhabitable after an insured event.

Optional endorsements include sewer-backup coverage, identity-theft assistance, and higher jewellery limits.

Best Practices for Landlords

Clear lease language and a simple follow-up routine let you enforce the insurance clause without straining relations with renters. Use the pointers below to cut risk and keep every unit protected.

1. Put it in writing – specify the minimum liability limit (commonly $1 million) and renewal-proof deadlines in the lease.
2. Ask for a certificate, not the whole policy – a one-page document confirms active coverage without exposing personal data.
3. Match coverage dates to possession – insist on an effective date of 12:01 a.m. on move-in day.
4. Set reminders – follow up 30 days before expiry to keep certificates current.
5. Stay neutral – provide a generic list of insurers or simply tell tenants to shop around; never steer them to one company.

Tips for Tenants When Insurance Is Required

Complying with an insurance clause needn’t be costly or complex. Use the pointers below to lock in the right coverage quickly and keep your lease secure.

• Start early – online quoting platforms can bind a policy in minutes, but last-minute scrambling leads to mistakes.
• Bundle policies – combining tenant and auto insurance can cut premiums by about 15 percent.
• Create an inventory – photos and serial numbers speed up claims and help set the right property limit.
• Choose a solid liability limit – $2 million costs only a few dollars more per month than $1 million.
• Store proof digitally – email the certificate to yourself and your landlord so it’s handy after a loss.

Myths and FAQs

“My landlord’s building policy should cover me.”
It does not. The landlord’s policy protects the structure, not your belongings or liability.

“Can the landlord cancel my lease mid-term if my policy lapses?”
Yes. A lapsed policy breaks the lease and can justify termination proceedings.

“Is tenant insurance expensive?”
National averages hover around $30 to $35 per month, less than replacing a mid-range smartphone.

“Do my claims affect the landlord’s record?”
No. Claims under your tenant policy stay on your own insurance history.

Related Article: How Much Is Landlord Insurance?

Ready to Safeguard Your Lease?

Tenant insurance is not a statutory must-have, yet a clear lease clause makes it compulsory. Residential tenancy boards across Canada side with landlords who:

• Include an explicit insurance requirement
• Enforce it uniformly
• Give tenants a reasonable time to secure coverage

For renters, the modest cost of compliance is a small price to avoid losing everything in a fire or facing a lawsuit over a flooded condo. Reach out to Ron Johnston Insurance today for a fast, personalized tenant-insurance quote and lock in your peace of mind.