Can you be evicted for not having renters insurance Ontario?

There seems to be a lot of confusion around whether or not each tenant needs renters insurance in Ontario and what a landlord is legally allowed to do if you refuse to purchase coverage from an insurance company.

If you're in the process of getting renters insurance and want to know more about the legality surrounding coverage requirements, take a quick look through our all-you-need-to-know guide below.

What is tenant insurance?

Tenant insurance is a special type of home coverage designed to protect those who rent in Canada. The types of insurance policies are included with basic coverage:

Contents insurance coverage

Contents insurance is specifically tailored to protecting your personal belongings from certain perils by providing compensation to policyholders for any repairs or replacements of their personal property. Common perils covered under contents insurance include fire damage, vandalism, and theft. Depending on your insurance company, you may have additional perils listed in your policies. Just make sure you ask your provider for a list of what perils are and aren't covered.

Liability coverage

Liability insurance for renters prevents you from being held responsible in the event a third party accidentally injures themselves on your property or damages their property while at your rented space.

For example, if a guest accidentally slips and falls in your house and decides to file a claim against you for injuries, your liability coverage will pay for the cost of repairs, medical bills, lawyer fees, settlement costs, and other expenses that may arise from the third-party claim.

Additional living expenses

The last portion of Ontario renters insurance is additional living expenses. Lets say a fire occurs in your rental unit causing smoke damage to your interior. Because it's likely unsafe for you to live there until a restoration company has been hired, you'll need to live elsewhere, which could take weeks or months depending on the extent of damage.

With additional living expenses coverage, your accommodations, and other expenses during this time will be reimbursed by your insurance provider.

Optional renters insurance coverage

Beyond standard tenant insurance, there are optional policies you may want to purchase to ensure you're fully protected from other accidents not already listed in your policy:

• High-value item insurance: High-value items like your engagement ring, artwork, instruments, luxury clothing, and other items may require you to purchase additional coverage. With this, damage or lost items will be compensated by your insurance provider.

• Sewer backup coverage: This tenant insurance policy will cover the cost of damages caused by sewer backup that is caused by heavy rainfall, clogs, and other plumbing problems.

• Identify theft insurance: With identity theft insurance, you'll be covered in the event you need to repurchase and recover your personal identification information if it is stolen in a burglary.

• Overland flooding insurance: Overland flooding insurance compensates policyholders in the event overland flooding causes water damage to their home and personal property.

Is tenant insurance a legal requirement?

So, is home insurance a legal requirement in Canada? No, it's not illegal not to have renters insurance. However, a landlord can require you for insurance purposes by putting it in your lease agreement.

Can you be evicted by your landlord for not having renters insurance?

Here's where things get tricky. Even though Canadian cities for renting a home, including Ontario, do not legally require you to have tenant insurance for your rental unit, your landlord still can evict you for refusing to follow the lease agreement.

That said, your landlord can only require you to have liability coverage, given that it deals with bodily harm or property damage responsibility.

However, as a renter, they cannot legally provide you with coverage for your personal belongings. If you refuse to purchase liability coverage, your landlord can pursue eviction of you and other tenants from the property.

It's also important to note that your landlord can only request that you have tenant insurance in your rental agreement, meaning that if you signed your rental agreement and it states you require tenant insurance, you'll need to purchase it. However, if your rental agreement does not state that tenant insurance is required, they can't verbally ask you to purchase coverage after the fact.

Under what circumstances can a landlord evict a tenant in Ontario?

Believe it or not, there are numerous reasons why landlords may seek to evict their tenants from their property. Some of the most common circumstances include:

• Late rental payments or the refusal to pay altogether.

• Illegal activities are taking place on the property.

• Unreasonable disruption of other tenants or the landlord.

• The landlord wishes to break the lease agreement in order to move into the property themselves.

• The landlord wants to conduct major repairs or renovations to the property.

• The building is being demolished.

How long does it take to evict someone in Ontario?

In general, once a landlord files their eviction notice with the Ontario board, it can take anywhere between 80 to 150 days for the entire process to be completed.

What is the eviction process in Ontario?

To pursue eviction of a person or persons from a rental property, a landlord needs to go through a formal eviction process with the Landlord and Tenant Board in Ontario. Generally speaking, the process with the Landlord and Tenant Board will go something like this:

1. A landlord must give a reason for the eviction. Evidence (if applicable) will need to be gathered and submitted to the Landlord and Tenant board for review.

2. Once the information has been filed, the landlord will then need to give tenants a legal notice of their eviction from the board.

3. If the tenant does not move out of the rental unit, landlords can file another application with the board who will then terminate the rental agreement.

4. A hearing will then take place in front of the board where the landlord and the tenant can give their version of events.

5. Once reviewed, the board will decide whether or not they rule in favour of the landlord or the renter.

Can my landlord increase my rent?

Yes, a landlord rent increase is legal in Ontario and the rest of Canada. However, in Ontario, the rent increase is capped at 2.5% to prevent landlords from increasing monthly payments by an unrealistic amount.

How does a renters insurance claim work?

How a renters insurance claim works is when an insured peril occurs at your rental house, you'll then need to document the evidence and notify your insurance provider of the damage or losses. At the time, they'll get you to answer questions about what happened and partner you with a claims adjuster.

Then, your adjuster will review your claim and determine whether you're qualified for compensation. Once approved, your insurance provider will send you a cheque for damages so you can pay for repairs or replacements of your belongings.

How much does tenants insurance cost?

Crafting your first budget takes some thought. And if you're moving out for the first time, you probably have some confusion about how much of your income should rent be, what the renters insurance cost for an apartment is, and more.

Typically, where you live in Ontario will determine what you pay for tenant insurance. However, you can anticipate paying anywhere between $190 and $400 a year, which works out to be approximately $15 and $35 a month.

How is tenant insurance calculated?

Okay, so beyond location, how is homeowner's insurance calculated? Insurance providers will consider other factors such as the type of rental property you live in, whether you choose to add on additional tenant insurance coverages, the deductible you choose, your coverage limits, your claims history, and more.

Do I need renters insurance?

If you're still contemplating, "do I need renter's insurance in Canada?" take a closer look at some of the benefits tenant insurance coverage can offer:

Provides peace of mind

The unexpected can happen at any time. But with a tenant insurance policy in place, you can have peace of mind knowing that you've got the protection you need when times get stressful. Think of tenant insurance as a security net that's there just in case.

Offers financial protection

Imagine the cost of having to replace all of your personal property in the event something happens in your unit or other units in your apartment building. Without tenant insurance, you could be faced with hundreds to thousands of dollars in repair and replacement bills that you'll need to pay out of pocket.

Protects your interests

Additionally, if someone is injured on your rental property or unintentional damage to a third party's belongings while at your home, you could be held responsible for damages. In the event a lawsuit is filed against you, you'd have to pay for legal fees, repairs, medical costs, and settlement funds on your own. But with tenants insurance, you can rest assured knowing that your interests are protected.

Ultimately, you should get insurance early rather than waiting until the unthinkable happens.

Does renters insurance cover bed bugs?

A common misconception is that renters insurance covers bed bugs, but in reality, this is not the case. Because bed bugs are seen as preventable and not an unexpected event, your tenant insurance will not provide coverage for an infestation or any restoration that occurs afterward. That said, depending on the provider, you may be able to purchase additional policies, but this isn't as common in Canada.

Does renters insurance cover fire damage?

Okay, so what about fires? Does renters insurance cover fire damage? To put it simply, yes, fire damage is considered a covered peril under standard tenant insurance plans as long as the damage is not intentional.

Get renters insurance with KOHO

The importance of tenant insurance is invaluable. With numerous risks, it's essential for renters to have the right coverage in place.

At KOHO, we're your hub when it comes to all things renters insurance in Canada. With numerous resources available, you can rent with confidence knowing we've got you covered.

If renting with bad credit is something you want to avoid, learn how you can build your credit with KOHO and get a free credit score check online! Learn how to save on monthly expenses and whether rent vs. own home is worth the investment!

We can also help with your plans for spending and saving with our high-interest savings account and overdraft protection coverage.