Renting in Ontario comes with a lease rule worth knowing: Ontario’s standard form of lease, which applies to most residential tenancies signed on or after April 30, 2018, has a section where the landlord and tenant agree whether the tenant must carry liability insurance. That, plus Toronto’s history of basement flooding and a large condo rental market, shapes what Ontario tenants need from a policy. How tenant insurance works in general is covered in the tenant insurance guide for Canada; this page covers what is specific to Ontario, and the home insurance hub links to every other province.
Ontario’s standard lease and tenant insurance
Ontario tenants are not required by law to buy insurance, but the standard lease gives the landlord and tenant a simple way to make it a condition of the tenancy. Section 11 of the lease, “Tenant’s Insurance”, has two options: no tenant insurance requirement, or this one:
- the tenant must have liability insurance at all times;
- if the landlord asks for proof of coverage, the tenant must provide it;
- it is up to the tenant to get contents insurance if they want it.
Tenants usually show proof with a certificate of insurance from their insurer, and a landlord can be listed on the policy as an interested party, which means the insurer tells them if the policy is cancelled. The lease clause is about liability coverage; contents coverage for your own belongings remains your choice, although tenant policies generally include both. The rest of the tenancy rules are covered in the Ontario tenant rights guide.
What Ontario tenants pay
APOLLO Insurance, an online insurer, publishes the average price of the tenant policies it issues. For policies issued from July 1, 2025 to June 30, 2026, its Ontario average was $21.58 a month, against $21.74 across all the provinces in its data. That is one insurer’s customers, not a market-wide figure. Your own price depends on:
| Factor | Effect in Ontario |
|---|---|
| Location | Larger cities tend to cost more, and the premium can vary down to the postal code |
| Unit type | Basement units often need the sewer backup add-on, which has its own premium |
| Building | Its age, type and security features affect the price |
| Coverage | Higher contents and liability limits and more add-ons cost more; a higher deductible generally costs less |
| Bundling | Many insurers discount tenant insurance when you also insure a car with them |
APOLLO’s figures for other provinces are in the tenant insurance guide, and the best tenant insurance companies page compares providers that sell in Ontario.
Toronto: basement units and sewer backup
Some of Toronto’s older areas have combined sewers, a single pipe that carries both sewage and stormwater. In intense rain the volume can exceed the system’s capacity, and sewer backups are a cause of basement flooding. The July 8, 2013 flooding in the Greater Toronto Area caused about $925 million in insured losses, according to the Insurance Bureau of Canada.
Sewer backup is not part of a standard tenant policy. It is an optional endorsement with its own premium, and it matters most for:
- basement and lower-level apartments;
- older houses converted into several units;
- older apartment buildings with ageing drain connections.
Overland water (surface flooding from rain or a river) is a separate endorsement again. For a basement tenant, having one without the other can leave part of a flood claim uncovered.
Renting a condo unit in Toronto
Many Toronto rentals are condo units owned by individual investors. The building is insured by the condo corporation, not by the unit owner or the tenant. If a leak or fire you cause damages the building or other units, the corporation’s insurer, the unit owner or neighbours can pursue you for the cost, and that is the claim your tenant liability coverage responds to. It is worth asking the owner what the corporation’s deductible is before signing. The owner’s side of the arrangement is explained in the condo insurance guide.
Limits on valuable items
Tenant policies cap how much they pay for some categories of belongings, such as bicycles, jewellery, collectibles and cash, and the caps vary by insurer. A renter with an expensive bike or camera gear can ask about scheduling those items or adding a rider rather than rely on the general contents limit.
Tenant insurance elsewhere in Canada
Rules and risks differ by province: earthquake coverage in BC, hail and wildfire evacuations in Alberta, and Quebec’s civil-law lease in Quebec. Tenants who go on to buy in Ontario can compare Ontario home insurance.