Subletting Your Apartment? What Happens to Your Insurance

Subletting is increasingly common in Canada — whether you're leaving for a work term, travelling for the summer, or moving in with a partner on a trial basis. But most renters who sublet their apartment never think about what happens to their insurance.

The reality: subletting can void your tenant insurance coverage if you don't handle it correctly. And if something goes wrong — a fire, a theft, a liability claim — both the original tenant and the subtenant can be left completely unprotected.

This guide explains what both parties need to do to stay covered.

If you're the primary tenant planning to sublet your unit, your insurance obligations don't disappear just because someone else is living there.

Step 1: Notify Your Insurer

This is the most critical step. Contact your insurance provider before the sublet begins and inform them that:

• You will be subletting your unit
• Someone else will be living there (provide dates)
• Whether you'll be leaving any belongings in the unit
• Where you'll be living during the sublet period

Your insurer may:

• Continue your policy as-is with a note about the sublet
• Modify your coverage — for example, reducing contents coverage if you're removing most belongings
• Add a surcharge for the sublet period
• In rare cases, decline to cover the sublet — especially if your policy explicitly prohibits it

What you should never do is simply cancel your insurance. Even if you've moved out temporarily, maintaining your policy protects your belongings in the unit, maintains your insurance history, and ensures you're not creating a gap that affects future rates.

Step 2: Protect Your Belongings

If you're leaving belongings in the unit (furniture, kitchenware, storage items), your tenant insurance should still cover them — but only if your insurer knows about the sublet. Create an inventory of what you're leaving behind, with photos and estimated values. This documentation is essential if the subtenant damages something or a covered loss occurs.

Step 3: Require the Subtenant to Get Insurance

Include a requirement for tenant insurance in your sublet agreement. This protects both of you:

• The subtenant's belongings are covered by their own policy
• The subtenant has liability coverage for incidents in the unit
• If the subtenant causes damage, their insurance can help cover costs

Ask for proof of insurance (a certificate or declaration page) before handing over the keys.

If you're subletting someone else's apartment, you need your own tenant insurance. Here's why and how:

Why You Need Your Own Policy

• The original tenant's insurance does not cover you. Their policy covers their belongings and their liability — not yours. If a fire destroys your laptop, clothing, and furniture in the sublet, you have zero coverage without your own policy.
• Liability protection: If a guest slips and falls in the apartment, or if you accidentally cause a flood that damages other units, you need your own liability coverage to handle the claim.
• The landlord's insurance doesn't help either. The landlord's building insurance covers the physical structure — not the contents of any unit, and not your personal liability.

How to Get Coverage as a Subtenant

1. Contact an insurer and request a tenant insurance policy for the sublet address
2. Inform the insurer that you're a subtenant (not the primary tenant on the lease). Most insurers have no issue covering subtenants
3. Set the policy dates to match your sublet period. Many insurers offer short-term policies (3, 6, or 12 months), though some require a minimum of 6 months
4. Choose appropriate coverage:
   • Contents coverage based on the value of your belongings in the unit
   • Liability coverage of $1 million minimum ($2 million recommended)
   • Additional living expenses in case the unit becomes uninhabitable

Short-Term Sublets (Under 6 Months)

Finding insurance for very short sublets (1 to 3 months) can be challenging. Some options:

• Some insurers offer month-to-month policies, though they may cost more per month
• If you already have tenant insurance at another address, you may be able to transfer your policy to the sublet address temporarily
• Your existing policy's off-premises coverage may cover some belongings at a temporary location — but this is not a substitute for a proper policy at the sublet address. Off-premises limits are typically capped at 10% of your contents coverage

The risks of subletting without proper insurance are real and potentially severe:

Scenario 1: Fire in the Sublet Unit

A fire destroys the subtenant's belongings and damages the unit. Without their own insurance:

• The subtenant replaces all belongings out of pocket (potentially $20,000 to $50,000+)
• If the fire was caused by the subtenant's negligence (left a candle burning), they have no liability coverage. The landlord's insurer may pursue them for the building damage
• The original tenant's belongings left in the unit are covered by the original tenant's policy — but only if they informed their insurer about the sublet

Scenario 2: Subtenant Causes Water Damage

The subtenant's washing machine hose fails, flooding the unit below:

• The building's insurance covers structural damage, but the deductible may be charged to the unit
• Without insurance, the subtenant is personally liable for the deductible and any uninsured costs
• The downstairs neighbour's insurance covers their own losses, but their insurer may subrogate against the subtenant for recovery

Scenario 3: Theft During Sublet

The subtenant's apartment is burglarized:

• The original tenant's belongings left in the unit are covered by the original tenant's policy (if properly disclosed)
• The subtenant's belongings are not covered at all without their own policy
• The subtenant has no recourse for any stolen items

Every sublet agreement should include clear insurance requirements. Here's what to include:

For the Original Tenant to Include

• Insurance requirement: "The subtenant agrees to maintain tenant insurance with a minimum of $1,000,000 in personal liability coverage for the duration of the sublet period."
• Proof of insurance: "The subtenant shall provide a copy of their insurance declaration page or certificate of insurance before the sublet commencement date."
• Damage responsibility: "The subtenant is responsible for any damage to the unit or the original tenant's belongings caused by the subtenant or their guests, beyond normal wear and tear."
• Inventory acknowledgment: "Both parties agree to the attached inventory of the original tenant's belongings remaining in the unit, including their condition at the start and end of the sublet."

For the Subtenant to Verify

• That the landlord has approved the sublet (subletting without landlord consent can void everyone's insurance)
• That the original tenant's insurance is active and the sublet has been disclosed to their insurer
• That there are no building rules that affect your use of the unit (no pets, no smoking, etc.) — violating these could affect insurance claims

If you're subletting your apartment and moving to a different location (another city, a partner's place, or your own temporary sublet), here's how to handle insurance:

If You're Moving to Another Rental

Transfer your existing tenant insurance to your new address. Most insurers can do this with a phone call. Your policy adjusts to the new location's risk profile — your premium may go up or down depending on the neighbourhood, building type, and security features.

If You're Moving in with a Partner

If your partner already has tenant or home insurance, you may be covered as a household member. Check their policy. If you're keeping your sublet unit and leaving belongings there, you may want to maintain a separate policy for those items.

If You're Going Abroad

If you're leaving Canada temporarily (work term, travel, study), you may want to keep your tenant insurance active to:

• Cover belongings left in the unit
• Maintain your insurance history (gaps can affect future rates)
• Stay covered if you return early

Some insurers allow you to reduce your coverage during the sublet period (lower contents coverage since most of your belongings are with you), which lowers the premium while maintaining the policy.

Subletting is a practical solution for Canadian renters — but it creates insurance gaps that can leave both parties unprotected. The rules are straightforward:

• Original tenant: Notify your insurer, keep your policy active, and require the subtenant to get their own coverage
• Subtenant: Get your own tenant insurance for the sublet address — the original tenant's policy does not cover you
• Both parties: Include clear insurance requirements in the sublet agreement, and exchange proof of coverage before the sublet begins

Tenant insurance costs $15 to $30 per month. The cost of being uninsured during a sublet — a liability claim, a theft, a fire — can easily reach tens of thousands of dollars. Don't let a short-term living arrangement create a long-term financial problem.