If you’re renting an apartment or leasing out a property, the topic of tenant insurance is bound to come up. It’s a common point of confusion: Can a landlord legally require tenant insurance? And if so, why?

In Ontario, the short answer is yes: a landlord can require a tenant to carry insurance as a condition of the lease agreement. It’s not a provincial law, but it’s legally enforceable if outlined in the lease. As tenant insurance becomes increasingly standard in rental agreements, both landlords and renters benefit from understanding how it works, what it covers, and how to get affordable protection.

At Marathon Insurance, we help tenants find the right coverage and help landlords feel more secure knowing their property and liability risks are covered.

Related Article: What Is Tenant Insurance?

What Is Tenant Insurance?

Tenant insurance (also called renters insurance) is a policy that protects the tenant’s personal belongings and liability while living in a rental unit. It does not cover the building or the landlord’s property that’s covered under the landlord’s own insurance.

A typical tenant insurance policy includes:

• Contents Coverage: Protects personal items like furniture, electronics, clothing, and valuables in case of fire, theft, or water damage.
  
  
• Liability Coverage: Covers legal costs if the tenant accidentally causes damage to the unit or injuries to someone else (e.g., leaving the tap on and flooding the neighbour’s unit).
  
  
• Additional Living Expenses: Pays for temporary accommodations if the unit becomes unlivable due to a covered loss.

Can a Landlord Require Tenant Insurance in Ontario?

Yes. Landlords in Ontario are allowed to require tenants to purchase and maintain tenant insurance as a lease condition. While the Residential Tenancies Act doesn’t mandate it, there’s no law prohibiting landlords from including it in a lease.

If the lease clearly states that tenant insurance is required, the tenant must comply. Failing to do so could result in a breach of lease terms.

This requirement is increasingly common in condos, apartments, and even single-family rentals, especially in larger cities like Toronto, Mississauga, and Ottawa, where landlord liability exposure is high.

Related Article: How Is Renters Insurance Different from Home Insurance

Why Landlords Want Tenants to Have Insurance

From a landlord’s perspective, tenant insurance helps reduce risk and avoid disputes. Here’s how:

Reduces Liability

If a tenant accidentally starts a fire or floods a neighbouring unit, their liability coverage can help pay for the damage. Without it, the landlord may be left dealing with uninsured losses.

Protects Tenant Belongings

Landlord insurance doesn’t cover tenant property. If there’s a break-in or fire, the tenant might blame the landlord unless they have their own coverage.

Avoids Legal Disputes

Tenant insurance can streamline claim processes and avoid finger-pointing after damage occurs.

Ensures Compliance with Condo Rules

Many condominiums require all residents, including tenants, to carry liability insurance to live in the building.

What Happens if the Tenant Refuses?

If the lease states that tenant insurance is required and the tenant refuses to comply, the landlord can:

• Request proof of insurance (certificate or policy)
  
  
• Send a written notice requesting compliance
  
  
• Take steps to end the tenancy for breach of lease terms (though this may involve legal notice or tribunal proceedings)

Landlords cannot evict a tenant mid-lease without due process, but if the tenant refuses to follow the agreed terms, including insurance, the landlord may pursue legal remedies through the Landlord and Tenant Board.

For tenants, it’s almost always better to comply. Most policies start around $15–$30/month — a small price for peace of mind.

What Tenant Insurance Does Not Cover

To manage expectations, it’s important to know what tenant insurance typically does not cover:

• The structure itself (walls, ceilings, or the roof) — that’s the landlord’s responsibility
  
  
• Wear and tear or damage from neglect
  
  
• Flooding from external sources, unless optional water damage coverage is added
  
  
• High-value items like fine art or jewellery above policy limits (can be added by endorsement)

Related Article: What Are Common Insurance Myths?

Common Myths About Tenant Insurance

Myth 1: I don’t own enough stuff to insure.
Even a modest one-bedroom unit likely holds $15,000–$30,000 in belongings — furniture, electronics, clothing, appliances, and personal items add up quickly.

Myth 2: My landlord’s insurance will cover me.
It won’t. The landlord’s policy protects their building, not your personal property or legal liability.

Myth 3: It’s expensive.
Most renters can get solid coverage for the cost of a weekly coffee run. Plus, bundling with car insurance can bring added savings.

Related Article: How Much Is Tenant Insurance?

How to Get Tenant Insurance in Ontario

Getting coverage is simple, especially with Marathon Insurance. Here’s how it works:

1. Request a Quote
   Visit marathoninsurance.ca or call us for a custom quote based on your location, unit type, and coverage needs.
   
   
2. Choose Your Coverage
   Decide on contents value, liability limits (usually $1M or $2M), and any optional add-ons like identity theft or water protection.
   
   
3. Get Proof of Insurance
   We provide an insurance certificate you can share with your landlord or property manager.
   
   
4. Stay Protected
   Coverage usually renews annually and can be updated at any time if you move or need to increase limits.

Benefits for Tenants

• Covers personal losses from theft, fire, and water damage
  
  
• Provides liability protection
  
  
• Covers temporary housing costs if you’re displaced
  
  
• May be required for condo living or lease approval
  
  
• Offers peace of mind at a low cost
  

Benefits for Landlords

• Reduces the risk of being held liable for tenant negligence
  
  
• Adds a layer of financial protection to the tenancy
  
  
• Helps resolve claims faster and with less conflict
  
  
• Complies with condo or strata rules in managed buildings

Protection Is a Shared Responsibility

Renting a property, whether as a tenant or landlord, is a mutual agreement that requires both parties to protect their own interests. Tenant insurance helps fill the gaps left by landlord policies, ensuring that damage, liability, or accidents don’t result in massive financial loss.

It’s not just about rules; it’s about smart protection for both sides of the lease.

Get Covered Today

If you’re a renter looking for affordable, easy-to-manage tenant insurance or a landlord wanting help explaining insurance requirements to tenants, Marathon Insurance has you covered.

Get in touch with us to get a quote or speak with an advisor today.

Let’s make protection easy for you and your property.