Quote data from MyChoice.ca, October 2024
London Tenant Insurance Overview
Nearly half of London’s residents choose to live in rental properties. Renting a home is usually more affordable in the short-term and it means saving on maintenance costs. However, if you’re a renter, you should always keep in mind that your landlord’s home insurance does not cover your personal belongings.
The lack of coverage means you still need to pay for any repairs or replacement if your things are damaged in a fire or other hazards. This is where tenant insurance comes in. Your tenant insurance policy can cover the costs needed to restore your belongings if you have the right coverage.
Choosing the right tenant insurance policy can be confusing because different insurers offer varying types of protection. Learn more about tenant insurance for London renters to ensure you make informed decisions and pick the best policy for your needs.
How Much Does Tenant Insurance in London Usually Cost?
Tenant insurance in London costs $204/year, on average. Tenant insurance rates in London are generally a little less expensive than the Ontario average renters insurance rate, which is around $265 annually. This means you generally pay around $17 per month, a very reasonable fee to protect your belongings from various dangers.
Quote data from MyChoice.ca, October 2024
A Snapshot of London Renters
How common are renters in London? How competitive is the rental market? Let’s take a look:
According to the 25% sample data presented in the 2021 Census of Population, 41.9% of London’s 174,655 residents are renters. Apartment dwellers are very common in London, with around one-third of the city’s residents living in duplex, low-rise, or high-rise apartments.
The Canada Mortgage and Housing Corporation’s January 2023 rental report states that the London rental market is highly competitive. Vacancy rates for purpose-built rentals are 1.7%, while condo vacancy rates are at 0.9%. The extremely low vacancy rates were caused by increasing demand due to immigration, an influx of students, and high homeownership costs.
The average rent for two-bedroom homes in London rose by 5.8% to $1,393. Stiff competition and high demand for rentals naturally drive higher prices, with new tenants often seeing 25% rent increases compared to previous residents.
Average Monthly Rent in London
Below is the average monthly rent in London, categorized by apartment type. The rent price for a 1-bedroom apartment in London is $1,186, way below the Ontario average of $1,480.
| Apartment Type | Average Monthly Rent |
|---|---|
| Bachelor | $959 |
| 1 Bedroom | $1,186 |
| 2 Bedroom | $1,473 |
| 3 Bedroom + | $1,565 |
London Rent Price Over The Years
Rent increased consistently across all apartment types from 2018 to 2023. For example, the rent price for 2-bedroom apartments increased substantially from $1,088 in 2018 to $1,473 in 2023, or about 35.4%, indicating higher demand for these units.
London Vacancy Rate Over the Years
Vacancy rates for 3-bedroom apartments in London decreased significantly from 4.1% in 2018 to 1.3% in 2023, indicating a tightening market for larger apartments.
London Population Growth
London’s population grew from 383,822 to 422,324 in 5 years since 2016, a 10.03% increase. That’s a high population growth rate relative to some other Ontario cities.
What Is Not Included in a Typical London Renters Insurance Policy?
Even if you’ve opted for a highly comprehensive tenant insurance policy, there are some risks that insurers explicitly don’t include as a covered peril. These are called “exclusions” by London insurance companies.
Here are the most common tenant insurance exclusions:
Note that a tenant insurance policy doesn’t cover loss or damage to items that aren’t yours, so it won’t cover a roommate’s belongings or your landlord’s possessions. Also, the list above is by no means an exclusive enumeration of risks typically excluded from a tenant insurance policy in London. Talk to your tenant insurance provider to see what’s covered by your policy in case of loss or damage.
How You Can Get Cheap Tenant Insurance in London?
If you’re trying to save money on tenant insurance coverage in London, visit our provincial page for a list of practical tips.