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Renter insurance

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GO5 | 03 Jan 2015, 10:09 PM Agree 0
do you insist on renters insurance? Do you include it in your agreement?

why or why not?
  • Jon | 16 Feb 2015, 05:30 PM Agree 0
    In Ontario tenants do NOT have to have insurance. A landlord can not evict if the tenant doesn't have insurance. This is true even if the lease says the tenant must have insurance coverage and even if the tenant signs the lease and agrees to it. Sadly many tenants are mislead into believing the Landlord's insurance will cover them in the event of a loss, only to find out latter they have no coverage.
  • Joe Hoffer | 19 Mar 2015, 01:58 PM Agree 1
    Jon, I disagree. You can apply to evict a tenant in Ontario if the tenant refuses to comply with the lease provision requiring the tenant to have insurance. The Ontario Divisional Court, in a case called Stanbar Properties Limited v. Joseph Rooke, the court held that it was appropriate for a landlord to serve an eviction notice and apply to evict the tenant on the ground, among other things, that the tenant was in breach of the contractual obligation to obtain and maintain adequate tenants' insurance. Having said that, you still would need to satisfy a Board Member that the breach was "serious" enough to warrant eviction, but that is a matter of providing evidence to the Board to show the serious financial consequences to landlords when tenants fail to have insurance and pass all risk of damage on to the landlord, particularly when a claim is made. And no tenants will be misled if the landlord puts them on to an insurer as part of the lease up process.
  • jon | 27 Mar 2015, 02:13 PM Agree 0
    The Ontario landlord tenant board does NOT require tenants to carry insurance. This has been a long discussion on other landlord forums. The Ontariolandlord tenant board is the administrative body that virtually all residential landlords MUST deal with. This board has a long history of siding with tenants. While in theory it MIGHT be possible for an Ontario landlord to evict a tenant because the tenant is not carrying insurance, its extremely unlikely.

    It is true that a REAL court such as the divisional court might acknowledge a tenant's agreement to carry valid insurance, but the Ontario landlord tenant board and the Ontario residential tenancies act does not.
  • Jose Da Silva | 15 May 2015, 06:18 PM Agree 0
    Jon, Can you tell me exactly where the Ontario Residential Tenancies Act specifies that you don't have to have tenants insurance?
  • Jose Da Silva | 15 May 2015, 06:24 PM Agree 0
    Yes. Always. As to why. To protect yourself.
    I'll go even further. My Insurance Company demands that I provide them with my Tenants Insurance.
  • | 18 May 2015, 05:56 PM Agree 0
    Jose, the Ontario residential tenancies act does not specifically say tenants do not have to have insurance.

    Instead the Act omits this issue completely. The adjudicators then argue that because the Act doesn't specify tenants must carry insurance it is therefore not a requirement for tenants and can not be mandated by landlords.

    It is possible that if the issue is pursued by a landlord at a higher court, the tenant might be found in breach of the lease and an eviction ordered.

    But the reality is landlords must first apply to the Ontario Landlord Tenant board for an eviction and the board favors tenants. It is extremely unlikely an eviction would be granted based on the tenant not having insurance.

    Insurance companies often tell the landlord the tenant must have insurance, but in Ontario, landlords cant effectively force tenants to carry valid insurance.

    Tenant groups oppose requiring tenants' insurance because they say it is often too costly for tenants. I have heard it said, they imply the landlords' insurance will usually cover the tenants' losses, therefore tenant insurance isn't required.
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