Many renters in Montreal ask the same question: Do I need tenant insurance? Some renters think it’s optional. Others don’t know it exists. But if you are renting an apartment, you need to understand how it works and why it matters, because it protects you as renters and your landlord's property, too.
This guide will explain tenant insurance in simple terms. What is renters insurance and what does it cover, whether it’s required, how much it costs in Montreal, and how to help renters choose the right policy - you`ll learn all.
What is Renters Insurance?
Tenant insurance is a type of insurance that renters buy to protect their personal belongings. It also protects them if they accidentally damage your property or injure someone else.
This type of insurance does not cover the building itself. That’s your responsibility as a landlord. Tenant insurance only covers the renter’s stuff and their legal liability.
In many leases of rental apartments, it’s also called renter’s insurance. It’s the same thing.
Key Terms You Should Know
Here are a few basic terms to help understand what a policy might include:
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Contents insurance: Covers the tenant’s personal belongings inside the unit, and often outside too, like if a laptop is stolen from a car.
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Liability insurance: Covers legal costs and damages if the tenant is responsible for injury or property damage.
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Replacement cost: Means the tenant’s items will be replaced with new ones of a similar kind and quality, without a deduction for wear and tear.
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Additional living expenses (ALE): Covers the cost of hotel stays, meals, and transport if the unit becomes unlivable after a fire or flood.
Knowing these terms helps tenants choose the right policy—and helps landlords explain why it’s important.
How Does Tenant Insurance Work?
What Does Tenants' Insurance Cover?
Insurance coverage for renters includes three important areas:
1. Personal belongings
If a tenant’s items are stolen or damaged in a fire, the policy helps them replace those items. That includes things like clothes, electronics, furniture, and bikes. This is important, because your landlord policy does not protect their things.
2. Liability protection
If a tenant accidentally starts a fire that damages your building—or floods another unit—their tenant insurance can help cover the cost. It can also help if someone is injured in their apartment and tries to sue.
3. Additional living expenses
If the unit becomes unlivable after a fire or flood, tenant insurance can help pay for the renter to stay somewhere else. This gives them peace of mind and avoids pressure on you to cover costs out of pocket.
What Isn’t Covered?
Tenant insurance doesn’t cover the building structure or permanent fixtures. That’s your job as the landlord. It also doesn’t cover damage caused on purpose, or regular wear and tear.
For example, if the tenant’s TV gets damaged because of old wiring in the wall, your property insurance may be involved. If the tenant spills wine on their own couch, their tenant policy may cover it.
Knowing who covers what makes things easier when damage happens.
Is Tenant Insurance Mandatory in Quebec?
In Quebec, tenant insurance is not required by law. But that doesn’t mean it’s optional in practice.
As a landlord of a furnished apartment in Montreal, you can ask tenants to carry tenant insurance as a condition of the lease. In fact, many landlords do exactly that—and for good reason.
If a tenant doesn’t have insurance and causes damage, you may end up chasing them for money. If they can’t pay, you may have to go to court or absorb the cost yourself.
Tenant insurance makes life easier for both sides. You protect your building. The tenant protects their belongings and legal liability. Everyone knows where they stand.
It’s a smart way to avoid misunderstandings and reduce risk.
How Much Does Tenant Insurance Cost?
Tenant insurance is surprisingly affordable. In most cases, it costs between $15 and $30 per month.
Prices vary depending on:
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The value of the renter’s belongings
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The location of your rental unit
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Whether the building has security features
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The type of coverage they choose
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The deductible (how much the renter pays out-of-pocket before insurance kicks in)
Tenants can often lower their premiums by bundling with their auto insurance, buying online, or installing smoke detectors and alarm systems in the unit.
For you as a landlord, it’s helpful to explain this to new renters. Many don’t realize how cheap the protection is.
How to Choose the Right Renters' Insurance
As a landlord, you can’t control which policy a tenant chooses. But you can help them ask the right questions and avoid poor coverage. That benefits both of you.
Here are the main things renters should consider when choosing a tenant insurance policy:
1. The value of their belongings
Tenants should walk through their home and make a list of what they own. This includes electronics, furniture, clothing, kitchenware, books, bikes, sports equipment, and more. People often underestimate how much their things are worth.
If their total is $25,000, their insurance should cover at least that amount under contents insurance.
2. Liability coverage limits
Most policies offer $1 million in liability coverage. That’s often enough to cover legal claims, but some renters choose $2 million for added peace of mind—especially in large multi-unit buildings.
3. Replacement cost vs. actual cash value
Tenants should check whether the policy offers replacement cost coverage. That means the insurer pays for a new item of similar quality, without deducting for age or use.
4. Additional living expenses
A good policy includes this coverage. If your rental unit becomes uninhabitable after a fire, the tenant’s policy can pay for temporary housing and meals.
5. Clear list of exclusions
Every policy has limits. Tenants should read the exclusions carefully. Some policies may not cover damage caused by:
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Roommates or short-term guests
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Pets
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Illegal activities
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Certain natural disasters
Tenants should also ask if items stored in basements or shared areas are covered. Montreal apartments often have storage lockers or sheds—those need to be protected too.
6. Shared accommodations
Many renters in Montreal share apartments with roommates. In this case, tenants should know:
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Some policies allow roommates to be included, but not all do.
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If roommates are not included, each person needs their own policy.
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Tenants should never assume their roommate’s policy protects their own belongings.
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This is especially important for student housing or group rentals.
7. Deductibles and how they work
The deductible is the amount the tenant pays out of pocket before insurance kicks in. Common deductibles range from $500 to $1,000.
A higher deductible means a lower monthly premium, but it also means the tenant pays more if something goes wrong. They should choose a deductible they can actually afford.
Conclusion
Tenant insurance is not just useful—it’s essential. For renters, it protects their stuff and their finances. For landlords, it provides peace of mind.
In Montreal, where rental units are in high demand and buildings are often older, small accidents can turn into expensive repairs. Tenant insurance is a smart, low-cost way to reduce risk for everyone.
If you're a landlord, consider including a tenant insurance requirement in your lease. It’s easy to enforce and protects both you and your tenants. Many renters will thank you for recommending it.
The bottom line? Tenant insurance is a small step that can prevent big problems.
FAQs
Does tenant insurance cover fire?
Yes. Most policies cover damage to a tenant’s belongings caused by fire, smoke, or related events.
Does tenant insurance cover theft?
Yes. It usually covers stolen items from the rental unit or even from a tenant’s car, depending on the policy.
Does tenant insurance cover water damage?
Yes, but depends on the cause. Tenant insurance typically covers water damage caused by things like burst pipes or overflowing tubs. It usually does not cover damage from natural floods unless extra coverage is added.
Does tenant insurance cover liability?
Yes. If a tenant causes damage to your building or injures someone inside the unit, their insurance can help pay for repairs or legal claims.
Does every tenant need renters' insurance?
By law, no. But many landlords in Montreal require it in lease agreements. It helps protect both you and the tenant.
Where can tenants get tenant insurance?
They can buy it online, through major insurance providers, or by contacting a local insurance broker.
How do tenants buy tenant insurance?
It’s usually simple. Tenants choose a provider, get a quote, pick coverage options, and apply online or over the phone. Many providers issue the policy the same day.
How long does it take to get tenant insurance?
In most cases, it takes less than an hour. Online applications are fast, and coverage can start right away.
Can a tenant cancel their insurance?
Yes. Tenants can cancel their policy, but they should make sure it doesn’t break their lease agreement if insurance was required.
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