Landlord vs. Tenant Insurance in Newfoundland and Labrador

When renting a home or apartment in Newfoundland and Labrador, knowing who is responsible for property and liability insurance can prevent costly surprises. Many tenants believe the landlord's insurance will cover all damages or losses, but this isn’t the case. In this article, we’ll break down the differences between landlord and tenant insurance, outline legal responsibilities, and help you protect your interests while renting in Newfoundland and Labrador.

Understanding Landlord Insurance

Landlord insurance is designed to protect the property owner’s investment. It typically covers:

• Structural damage to the building caused by fire, storms, or certain accidents
• Landlord-owned appliances and fixtures
• Loss of rental income due to insured damages making the unit uninhabitable
• Landlord liability if someone is injured on the property due to neglect or hazards

However, landlord insurance does not cover tenants’ personal belongings or liability for injuries within your unit unless the landlord is proven negligent.

What Is Tenant Insurance?

Tenant insurance (often called renter’s insurance) is an optional but highly recommended policy for renters. It provides important protections such as:

• Coverage for personal property (furniture, electronics, clothing, etc.) lost to theft, fire, or water damage in your rental unit
• Personal liability coverage if someone is injured inside your rented space
• Additional living expenses if your unit becomes uninhabitable due to an insured event and you need to stay elsewhere temporarily

Although not legally mandatory in Newfoundland and Labrador, many landlords include a tenant insurance requirement in their leases. Review your rental agreement carefully to confirm your obligations. For more about lease requirements and your rights after signing, see What Tenants Need to Know After Signing the Rental Agreement.

Who Covers What? Common Scenarios

The split between landlord and tenant insurance depends on the type of damage or incident:

• Building Damage: Landlord insurance covers the repair or replacement of physical structures, like walls, roofs, and floors (unless your negligence caused the problem).
• Personal Belongings: Only your own tenant insurance will pay to replace your damaged or stolen items.
• Liability for Injuries: If a guest is injured due to something in your exclusive space (like a pet bite or spilled drink), your tenant liability insurance pays. If it’s from the landlord’s faulty steps, the landlord’s insurance pays.
• Neighbouring Units: If you accidentally start a fire that spreads, you are responsible, and only tenant insurance can protect you financially.

Example: Water Leak

If your washing machine leaks and damages the downstairs apartment, you may be liable—tenant insurance covers this risk. If a pipe bursts in the wall and damages your furniture, the landlord’s policy repairs the building, but your policy covers your belongings.

Tip: Keep an updated list (inventory) of your personal items for insurance purposes. Take photos or keep receipts if you can.

Your Legal Rights and Responsibilities

Under the Residential Tenancies Act of Newfoundland and Labrador, the landlord must insure the building, but the law does not require tenants to buy insurance for their belongings. However, you should:

• Read your lease fully to see if tenant insurance is required
• Ask your landlord about property insurance coverage limits
• Consider tenant insurance to protect yourself from loss or lawsuits

For a helpful summary of provincial laws, renter rights, and landlord expectations, see Tenant Rights and Landlord Rights in Newfoundland and Labrador.

Forms You May Encounter

• Security Deposit Receipt (Form 3): When you pay a deposit, your landlord must provide you with this receipt. It is important to keep this as proof of payment. Find more details and the official form on the Residential Tenancies Division Newfoundland and Labrador Forms page.
• Rental Agreement: While there isn’t a specific provincial form number, you and your landlord should sign a written lease detailing rights and insurance requirements. Copies should be provided to both parties. Learn what else to look for after signing at What Tenants Need to Know After Signing the Rental Agreement.

How to Get Tenant Insurance

Getting tenant insurance is straightforward:

• Compare rates and coverage from Canadian insurance providers
• List all your valuable items in an inventory
• Decide how much personal property and liability coverage you want
• Read the policy carefully and keep a copy for your records

Tenant insurance is often an affordable safeguard that can prevent financial stress after an unexpected event.

FAQ: Tenant Insurance and Liability in NL

1. Is tenant insurance mandatory in Newfoundland and Labrador?
   No, it isn’t required by law, but many landlords request it as a lease condition.
2. What happens if I don't have tenant insurance and my belongings are damaged?
   You are responsible for replacing your belongings at your own cost if you are uninsured.
3. Does landlord insurance cover my personal belongings?
   No. It only protects the building and property owned by the landlord.
4. Can my landlord evict me for not getting tenant insurance?
   Only if your lease specifically requires you to have it. Always check your lease agreement.
5. Do I need tenant insurance if I live in a furnished rental?
   Yes—tenant insurance covers your personal liability and any belongings you bring into the rental, not just furniture.

Conclusion: Protecting Yourself as a Renter

• Tenant insurance is the only way to protect your belongings and personal liability in a rental
• Landlord insurance does not extend to tenant property or accidents caused by tenants
• Review your lease closely and consider coverage, even if not mandatory

Want to explore more about rental safety? See Health and Safety Issues Every Tenant Should Know When Renting for tips on protecting your well-being in your home.

Find rental homes across Canada on Houseme and compare your options before deciding.

Need Help? Resources for Tenants

• Residential Tenancies Division, Digital Government and Service NL — Handles tenant-landlord disputes, lease issues, and deposit claims
• Official Residential Tenancies Forms for NL — Download forms for deposits, complaints, and more
• Province of NL: Tenant Guide
• Read the Residential Tenancies Act (NL)
• Tenant Rights and Landlord Rights in Newfoundland and Labrador — Know your legal rights and landlord’s obligations

---

1. Residential Tenancies Act, 2018, Newfoundland and Labrador. View legislation
2. Newfoundland and Labrador Residential Tenancies Division. Official website
3. Tenant Insurance in Newfoundland and Labrador, Consumer Affairs. Learn more

Categories

Tenant Rights & Responsibilities Rent & Deposits Leases & Agreements Moving In / Out Maintenance & Repairs Evictions Roommates & Shared Housing Discrimination & Accessibility Utilities & Services Affordable Housing & Subsidies Dispute Resolution & LTB Safety & Security Privacy & Entry by Landlord Special Tenancy Situations Tenant Insurance & Liability Post-Eviction Resources Landlord Compliance & Penalties Legal Precedents & Case Summaries Mental Health & Tenancy