March 21, 2025

Is tenant insurance mandatory?

Although tenant insurance is not required in Quebec, it can be extremely useful in the event of a loss or damage.Did you know that if you’re a tenant and you cause damage to nearby apartments, you’ll be held liable? Unfortunately, plenty of tenants are unaware of this fact and don’t have home insurance. In 2017, nearly 40% of tenants were not insured. Whether you’re a tenant or looking for an apartment, it is essential to understand the importance of good coverage.

Woman in her apartment

How does home insurance work for apartments?

Home insurance for apartments, commonly called tenant insurance or renter insurance, provides coverage to replace your property in the event of theft or damage, as well as for relocation costs if your apartment becomes uninhabitable. Tenant insurance also includes liability insurance, which covers the cost of compensating for bodily injury or property damage unintentionally caused to someone who doesn’t live with you.

Is tenant insurance mandatory?

In Quebec, tenant insurance is not mandatory, but that doesn’t mean you don’t need it. Many people believe that they’re covered under the landlord’s insurance when they rent an apartment. Think again! Tenants are liable for any damage they cause. For example, if you forget to turn off the tap before going to work and your downstairs neighbour’s apartment turns into a swimming pool, you’re liable for the damage in their apartment and yours! If a guest comes over for dinner, trips on a rug and hurts themselves, you’re liable for their injuries; the insurance will be used to compensate them. If they decide to sue you, your insurance may even cover your legal expenses. Going without renter insurance is a mistake that could cost you a lot more than a monthly premium!

Landlord insurance is different from tenant insurance, as it mainly covers the physical structure of the building and sometimes common equipment such as elevators. These two types of insurance are equally important, as they complement each other to ensure complete protection.

	Tips and tricks Read your lease and the building by-laws carefully, because although home insurance is not mandatory in Quebec, your building’s by-laws may require it.

What exactly does tenant insurance cover?

Every insurance policy includes limits and exclusions, and it’s important to be aware of them. Here are the typical inclusions and exclusions of most tenant insurance plans on the market:

What does tenant insurance cover
Coverage	Inclusions	Exclusions
Personal property	Furniture, clothing, household appliances, personal objects	High-value items (e.g. jewellery, artwork) exceeding policy limits Damage caused by normal wear and tear Damage caused by insects, rodents and other pests
Civil liability	Damage caused to the building or to neighbours (e.g. water leak, fire) Injury to a third party in the apartment Injury caused by an animal (e.g. dog bite)	Damage caused intentionally Liability related to professional activities Liability related to possession of exotic or dangerous animals
Relocation costs	If the apartment becomes uninhabitable because of a disaster, the insurance covers the costs of temporary relocation	Living expenses if the damage is not covered under the insurance policy
Theft and vandalism	Coverage of personal property in the event of theft or vandalism in the apartment
Water damage	Water damage caused by a burst pipe or leaking household appliance Tenant forgetfulness (e.g. overflowing bathtub)	Damage caused by sewer backups Flooded basement
Broken windows	Replacement of broken windows or glass panes in the apartment (in the event of accidental breakage)	Damage caused by normal wear and tear Intentional breakage (e.g. breaking a window to unlock the door) Breakage caused by natural disasters (e.g. storms, earthquakes)
Fire	Damage caused by fire, smoke or explosions Damage caused by firefighters Cost of replacing damaged or destroyed property	Fire related to inadequate maintenance (e.g. chimney not cleaned) Arson or fire related to criminal activity

The above table provides a general summary of the basic coverages and possible exclusions, but details may vary from insurer to insurer. Make sure you check the specific terms of your policy and the coverage limits for each category. It is also possible to take out additional insurance, depending on your needs.

Furniture and artwork

What about property stolen from your car or from somewhere other than your home?

Your laptop and other items stolen from inside or outside your car are usually covered, even if it’s not parked at your house. If your car is stolen, you will be covered by your car insurance.

If your bike has been stolen or damaged, even if it wasn’t taken from your home, it’s covered by home insurance up to a certain limit.

What about food lost because of a power outage?

If you lose food in your fridge or freezer because of a power outage, your home insurance may compensate you under certain conditions.

What about if the personal belongings of a child, parent or dependent are stolen?

Theft of a dependent’s personal property is generally covered under your home insurance up to a specified limit indicated in the policy. They’re also covered if the person lives in a care facility. Personal belongings that a dependent brings to school, daycare or a student residence are covered.

What if a company’s property is stolen from a home?

It should be noted that a standard home insurance policy may not cover theft of a company’s property or equipment from your home.

What is the average price of a tenant insurance policy?

The average price, or premium, of tenant insurance depends on your needs.

What is a premium? The premium is the money you pay to maintain the insurance policy. Tenant insurance is usually paid monthly, but payments can also be quarterly or annual.

In 2022, the average price of a tenant insurance premium was $327 per year or $29 per month. Of course, this amount depends on your needs. Some policies cost as little as $15 a month.

What affects the price of tenant insurance?

The insurance premium is influenced by several factors, including:

The location of the apartment
The number of apartments in the building
Whether the owner lives in the building or not
The floor where your apartment is located
Whether you have backup heating
The total value of your property and the amount of insurance you need to protect it
Whether there is a business in the building, and the type of business

How to save on tenant insurance

There are many ways you can save on your insurance:

Do you have a car? Purchasing combined home and car insurance can save you money.
When you make a claim, you will have to pay a deductible—let’s say $500. If there’s water damage, you’ll have to pay the first $500 (the deductible) and the insurer pays the rest of the claim for cleaning, repair and other costs. If you can afford to increase the amount of the deductible, the premium will be lower.
Evaluate whether you need all the protections included in the policy. Discuss it with your insurance broker.
Do you belong to a professional association? Are you a recent graduate or student? You may be eligible for a discount from your educational institution or professional order. Contact these organizations for more information.
Getting estimates from multiple insurance companies can save you a lot of money every year. Shop around and compare at least three different quotes.
Installing an alarm system or water damage prevention system can make a difference.
Last but not least, if you’re lucky enough to have never submitted a claim, mention it when you’re getting a quote.

How to choose a tenant insurance policy

Knowing how to choose the right insurance is important to make sure you get the coverage you need. The first step is to assess your needs: you’re a renter, so you need insurance that reflects this situation.

The second step is to draw up an inventory of your property. Add as much detail as possible (make, model, serial number if possible) and indicate the value of each item. They say a picture is worth a thousand words, so take pictures of everything! This step lets you keep track of the total value of your property and helps the insurer establish adequate protection (basic or all risks).

As with all services, shopping around for your tenant insurance lets you find the best price.

	Tips and tricks Make sure you have an up-to-date inventory of everything you own and its estimated value before contacting insurance companies. Insurers will be able to provide more specific advice, and you’ll get adequate protection at a price that works for your budget.

What should you declare to the insurer?

Wondering what to declare in your tenant insurance policy? Well, as with many things, honesty is the best policy when it comes to your insurance. For example, lying about being a smoker could cost you dearly in the event of a fire. If you think you’re saving on your premium by “forgetting” to mention important details to your insurer, you should be aware that in the event of a claim, your insurer may refuse to pay.

What if the insurer asks you a question and you don’t know the answer? It’s better to say you don’t know than to give incorrect information.

How do I modify, renew or terminate my contract?

It is important to notify your insurer of any significant changes, such as acquiring a high-value item, getting a pet, or if someone new comes to live with you. This ensures you have optimal protection.

Home insurance does not always renew automatically. It depends on the company. Often, but not always, your insurer will send a notice 30 days before the end of your contract. To make sure you’re still protected, write down the expiry date in your agenda and let the company know if you want to cancel or renew your renter insurance.

If you want to terminate your tenant insurance policy before it ends, you must notify the insurer in writing. The further away the end date, the higher the penalty. You can also ask your new insurer to start the contract when the previous contract ends. If you purchased your insurance online, you can cancel the policy within 10 days without penalty, except in specific cases.

How do I file a claim?

There is a lot to do in the event of damage. Whether you’re the victim of a fire, water damage or even theft, the most important thing when making a claim is how soon you notify your insurer. As soon as you discover the damage, contact your insurer to explain what happened. Have your policy number handy, if possible.

In the event of water damage, take the time to limit the damage before you call, as long as it is safe to do so. Document the damage with photos and videos, as this information will be very useful for your claim file. Don’t do any repairs without the insurer’s authorization. However, you may be able to go ahead with emergency work, depending on your policy.

The insurer will appoint a claims adjuster who will handle your claim. They will guide you through the claims process and the work and will be able to check what is included in your coverage.

The claims adjuster will identify the cause of the damage, document it, and validate your declaration. They will estimate the damage and make a decision about the compensation that the insurer will pay you. Note that the amount paid may be different from the amount indicated in the contract. The claims adjuster analyzes the information and decides on the amount to allocate for purchasing new goods and furniture. The adjuster is obligated to explain how they arrived at their decision.

The time limit for a home insurance claim is generally 60 days.

Man doing an insurance claim on his laptop

Tenant insurance, explained

Even though tenant insurance is not mandatory in Quebec, you’ve probably come to the conclusion that it’s extremely useful in the event of damage, theft or vandalism. If you’re currently apartment hunting, take a look at apartments for rent on Centris.ca. Happy searching!

Frequently asked questions (FAQ)

1. Can the insurer refuse to pay?

Yes, there are certain exclusions to the policy that may not be covered during a claim. An insurer may also refuse to compensate you if you have not kept up with your payments, if an event was deliberately caused, or if you made a false statement.

2. Does tenant insurance renew automatically?

Tenant insurance does not always renew automatically. To keep your policy active, you’ll need to renew it or purchase a new one that starts when the previous one ends. Check when your policy ends to make sure you are always protected.

3. If I have roommates, is one policy enough?

Yes, you only need one policy, but all the names of the occupants of the apartment must be listed in the contract so that you’re all protected in the event of a claim.