19 Jan 2026 7 min read New to Canada

Tenant Insurance for Newcomers in Canada (2026): Do You Really Need It?

Is tenant insurance mandatory for your new apartment in Canada? Learn why landlords demand it, how to find plans for $15/month, and the best cheap options for students and newcomers in 2026.

You finally landed a rental apartment in Toronto or Vancouver. You’ve reviewed your Benefit Payment Dates to make sure you can cover the first and last month's rent. Then, right before you sign the lease, the landlord says: "I need to see proof of tenant insurance before I give you the keys."

You might be wondering: Is this a scam? Is it legal? Do I really need to pay another $20 or $30 a month just to live here?

In 2026, the rental market in Canada is more competitive than ever. Landlords are increasingly risk-averse, and tenant insurance has become a non-negotiable requirement for almost 90% of professional rental listings. While it isn't a law passed by the government, it is a legal part of your private contract.

This 2,000-word guide breaks down exactly why you need it, what happens if you don't have it, and where to find the absolute cheapest options—starting as low as $15 per month—so you can protect your wallet without breaking your budget.

For newcomers and international students, the biggest hurdle to getting insurance is often a lack of Canadian credit history. Many traditional insurance companies use a "soft credit check" to determine your premium. If you have no credit score, they might refuse to cover you or charge you double.

The "No Credit History" Hack (2026)

In 2026, a new wave of digital-first insurance providers (InsurTech) has removed the credit check barrier. Companies like Square One and Duuo focus on the location and type of building rather than your personal financial score in Canada.

Pro-Tip: If you are an international student, look specifically for "Student-Specific" policies. Providers like Apollo Insurance have created custom 2026 packages that do not require a Social Insurance Number (SIN) to apply. This is a massive win for those who just landed and are still waiting for their official documentation.

Why Landlords Demand It (The Reality)

Newcomers often think: "My landlord has insurance on the building, so I'm covered, right?" Wrong. The landlord’s insurance covers the bricks, the roof, and the pipes. It does not cover:

Your Stuff: If a pipe bursts and ruins your $2,000 laptop, the landlord’s insurance pays $0.
Your Liability: If you leave a pot on the stove and cause a small fire that damages the unit next door, the landlord’s insurance company will pay for the repairs—and then they will sue you for every penny.
Your Displacement: If the building becomes uninhabitable (e.g., a fire in the lobby), the landlord doesn't have to pay for your hotel. Your tenant insurance does.

More Financial Resources

Part 1: Is Tenant Insurance Mandatory in Canada?

Strictly speaking, there is no provincial law in Ontario, BC, or Alberta that says a resident must have tenant insurance. However, the Residential Tenancies Act (RTA) allows landlords to include insurance as a condition of the lease.

The "Eviction" Trap: If you sign a lease that says you must maintain tenant insurance and you let it lapse (stop paying), you are in breach of contract. In 2026, with landlords looking for any reason to move in higher-paying tenants, failing to provide proof of insurance can be used as a valid reason to file an N5 (Notice to Terminate a Tenancy) in Ontario or its equivalent in other provinces.

Part 2: The Cheapest Options in 2026 ($15 - $20/Month)

You do not need to pay $50 a month for coverage. Here are the top 5 cheapest, most reliable options for newcomers in 2026.

1. Square One Insurance (Starting at $15/month)

Square One is the most customizable option in Canada. Most insurers force you to buy $30,000 of "contents" coverage even if you only own a bed and a laptop. Square One lets you choose.

Best For: Newcomers with very few belongings.
Feature: You can insure just what you own. If you only have $5,000 worth of stuff, your premium will be significantly lower.
Customization: You can add or remove coverage for things like "Bicycles" or "Jewellery" with one click.

2. Duuo (By Co-operators) (Starting at $12 - $17/month)

Duuo is the digital arm of the massive Co-operators group. They have some of the most competitive rates in Toronto and Vancouver for 2026.

Best For: Students and short-term renters.
Feature: No annual contracts. You can pay month-to-month and cancel anytime without a penalty. This is perfect if you are on a temporary work permit.

3. Apollo Insurance (Starting at $11 - $19/month)

Apollo has grown rapidly by targeting the "un-insurable" market. They are very friendly to newcomers and international students.

Best For: International students living in shared housing.
Feature: They offer specific "Student" policies that cover things like "Identity Theft" (common for newcomers) as a standard feature.

4. YouSet (The Comparison King)

YouSet is a broker that shops around for you. They often find rates from Intact or Economical that are cheaper than going to those companies directly.

Best For: People who want to see multiple quotes in under 4 minutes.

Part 3: What Does the Policy Actually Cover?

A standard 2026 tenant insurance policy in Canada usually consists of three main parts:

Coverage Type	What it Covers	Why Newcomers Need It
Contents (Personal Property)	Your clothes, furniture, electronics, and even food in the fridge.	Replacing your entire wardrobe and tech after a theft or fire is impossible on a newcomer budget.
Personal Liability	Legal costs if someone slips in your apartment or if you accidentally damage the building.	A single lawsuit can destroy your financial future in Canada before it even begins.
Additional Living Expenses (ALE)	Hotel bills, restaurant meals, and moving costs if your unit is damaged.	If you are displaced, you won't have to use your GST/HST Credit money just to stay in a motel.

Part 4: Step-by-Step Guide to Buying Insurance Today

Estimate Your Stuff: Walk through your room. How much would it cost to buy everything new today? If the total is $10,000, that is your "Contents" limit.
Check Your Lease: Does your landlord require a specific "Liability" limit? Most demand $1 million, but some high-end condos in Toronto now require $2 million.
Get 3 Quotes: Start with Square One, check Duuo, and run a search on YouSet.
Answer Honestly: Don't lie about how many people live in the unit or if you have a dog. If you do, the insurance company can deny your claim later.
Pay Monthly: Most companies offer interest-free monthly payments. This is better for your cash flow while you are looking for work on BetterPayJobs.ca.
Send the "COI": Once you pay, the company will email you a Certificate of Insurance (COI). Forward this to your landlord immediately.

Cheapest Tenant Insurance

The cheapest tenant insurance in Canada for 2026 is typically found through digital providers like Square One (from $15/mo), **Duuo (from $12/mo)**, and Apollo Insurance. To get the lowest rate, choose a higher deductible ($1,000 instead of $500) and ensure you only insure the actual value of your belongings rather than accepting a "standard" $30,000 limit.

Frequently Asked Questions (FAQ)

Q: Does my roommate’s insurance cover me?

A: Usually, no. Most policies only cover the person named on the document and their immediate family (spouse/children). If you are living with friends, you each need your own policy or you must be specifically named as "additional insured."

Q: Can a landlord force me to use a specific insurance company?

A: No. A landlord can require you to have insurance, but they cannot tell you which company to use. You are free to shop for the cheapest option.

Q: What if I have a dog?

A: Some breeds (like Pitbulls or Rottweilers) might increase your premium or make you ineligible with certain companies. Always disclose your pets to avoid having your policy cancelled.

Q: Does insurance cover my car?

A: No. Tenant insurance only covers your belongings inside the car (like a laptop stolen from the backseat), but it does not cover the car itself. For that, you need auto insurance. If you just got your car, make sure to avoid Curb Sider Scams when buying.

Q: Will I get a discount if I have a security system?

A: Yes. Many insurers offer 5-10% discounts if your building has 24/7 security or if you have a "monitored" alarm system in your unit.

About the Author

Jeff Calixte (MC Yow-Z) is a Canadian labour market researcher and digital entrepreneur specializing in government benefit data and cost-of-living support. As the founder of CanadaPaymentDates.ca and BetterPayJobs.ca, Jeff helps newcomers, students, and workers navigate the Canadian social safety net—from tracking CRA payment schedules to finding entry-level work.

Sources

Square One Insurance: 2026 Tenant Insurance Rates & Customization
Duuo Canada: On-Demand Insurance for Renters
Insurance Bureau of Canada (IBC): Understanding Tenant Insurance
Ontario Landlord and Tenant Board (LTB): Tenant Obligations and Lease Agreements
Rates.ca: Average Tenant Insurance Costs in Canada 2026

Note

Official 2026 payment dates and benefit amounts are determined by the Canada Revenue Agency (CRA) and provincial governments. While we strive to keep this information current, government policies and schedules are subject to change without notice. All data in this guide is verified against official CRA circulars at the time of publication and should be treated as an estimate. We recommend confirming the status of your personal file directly via CRA My Account or by calling the CRA benefit line at 1-800-387-1193.