Do renters need insurance?

August 16, 2011Jennifer Brown
SPECIAL TO THE STAR

Contents insurance is something most renters don’t put too high on their list of priorities.

In the grand scheme of expenses, many feel it’s a cost they can do without, believing the likelihood something bad will happen is slim.

According to the Insurance Bureau of Canada, about half of all renters don’t have insurance, especially young people. They also fail to appreciate the full value of their clothing and personal belongings.

But there are other factors to consider, such as a tenant’s legal liability.

For example, you could be liable if your toaster oven causes a fire and it affects other units, or if you accidentally leave a tap on in the bathroom and the water causes damage.

The building owner could charge you for the cost of the damages, but they would be covered under your contents insurance policy. Without insurance, it would come out of your pocket.

But can a landlord make renting a unit conditional on having contents insurance?

Francis is a Toronto tenant who was looking to sublet her apartment. Her landlord met with the people interested in subletting and insisted they would be required to have contents insurance.

Francis and her roommate were never asked about contents insurance and she has never owned any in the 10 years she’s been renting. Although she understands she won’t be covered in the event of a fire or theft, she doesn’t think her furniture and possessions are worth the expense of insuring — especially since the odds of anything happening seem quite low.

Barrie-based paralegal April Stewart says contents insurance isn’t required under Ontario’s Residential Tenancies Act. However, landlords do have the right to insist on seeing proof of insurance prior to accepting a tenant or a sublet.

“Landlords who wait until after giving possession can try to evict based on no insurance, however there are inconsistent decisions on the matter,” says Stewart.

In the 2005 case of Stanbar v. Joseph Rooke, the Ontario ...read more Do renters need insurance?