How Much Is Tenant Insurance in Ontario

While tenant insurance is not a legal requirement, it’s vital for tenants if they want to safeguard their possessions and protect themselves from huge bills. While tenant insurance makes a lot of sense, you may be worried about how much it costs.

The exact cost can change depending on a number of different factors. Here we’ll analyze those factors while also looking at the average cost of tenant insurance in Ontario. Read on to find out more!

How Much Is Tenant Insurance in Ontario

As we mentioned, exactly how much you pay for tenant insurance will change from one person to the next. However, the average cost of tenant insurance in Ontario is around $350 per year. This works out to a little under $30 per month.

While that’s the average, most people will pay in a range from $15 to $40 per month depending on their circumstances. The average costs will also change depending on where you live, with Toronto having the highest average at a little under $500 per month.

That is most likely due to the higher house prices in Toronto, along with the greater population density. The only way to know for sure what you’ll pay for your tenant insurance is by getting a quote, which most brokers can give you without any obligation.

Factors That Affect the Cost of Tenants Insurance in Ontario

We’ve looked at the average and the range of tenant insurance costs in Ontario, but what goes into this figure? Here’s what will affect the cost of your premiums.

1. Value of Your Personal Belongings

One of the biggest factors that affect the cost of your insurance is the value of your belongings. If you have high-value items, you’ll likely need a higher level of coverage for everything that you own.

Usually, insurers will offer standard coverage which will be good enough for most items in your home but some high-value possessions may not be covered. Simply put, the more valuable your personal items are, the higher your insurance premium is likely to be.

2. Type of Rental Property

The type of rental property you live in can also play an important role in your cost of a premium in Ontario. There is a wide range of rental properties available such as apartments, condos, and houses, and they all come with a unique risk.

For example, you may get cheaper insurance if you live in a gated apartment building that has surveillance cameras. The insurer will assess the risk of theft and damage on your property and factor that into your premium.

3. Your Claims History

Whatever type of insurance you’re getting, your claims history will impact your tenant insurance Ontario fee. If you have a history of making frequent claims, then it’s likely they’ll view you as a higher risk and increase your premiums accordingly.

With tenant insurance, it’s usually wise to be cautious about filing claims for minor incidents that aren’t significant expenses. Constantly claiming for smaller expenses may not make financial sense in the long run, as your premiums can increase.

4.  Add Ons and Deductible

On top of your standard coverage, you may wish to add some optional extras to strengthen your coverage. For example, some policies may not cover you for flood damage. If you rent in an area that is a flood risk, it can make sense to pay for this extra cover.

Also, you need to consider the deductible you’re happy to pay. The deductible is what you pay before your insurance kicks in. For those wanting the cheapest insurance possible, you’ll need a high deductible but this comes with a risk, as you need to be sure you can afford it should you need to make a claim. 

5. Location

Some areas will be more prone to natural disasters, such as flooding, and therefore often have a higher premium. Other areas can be costlier as they are in higher crime areas, which increases the risk of making a claim. It’s for this reason that urban areas often have a higher cost than rural areas.

6. Bundling Insurance Policies

You can reduce your insurance costs if you bundle your insurance policies together. A common way to do this is to have a policy with the same insurer for both your tenant insurance and auto insurance. It’s a good idea to check if an insurer offers bundling discounts when looking for policies.

7. Other Minor Factors

We’ve looked at the main factors that affect the cost of tenant insurance Ontario, but there are also many other secondary reasons that can affect it too. These won’t have a significant impact on your premium but can change the cost slightly. Here are some examples:

• Proximity to emergency services
• Age
• Neighboring risks (such as living above a bar)
• Security features
• Pets
• Rental amount
• Lifestyle habits (such as smoking)
• Occupation

Final Thoughts

The tenant insurance cost in Ontario will vary depending on all of the factors that we’ve looked at above. However, for residents of Ontario, the average price you’ll pay is around $350 per year. It’s important to carefully assess your needs and get the right policy for you.

Having tenant insurance will give you peace of mind and keep you financially protected should you need to make a claim. If you’re looking for an exact quote, then contact Ron Johnston Insurance today and we’ll see how we can help find your perfect tenant insurance policy.