Tenant insurance is commonly known as renters insurance. It is not mandatory to have tenant insurance in Ontario. However, landlords want their tenants to have tenant insurance before permitting the tenants to move in. There is a common misunderstanding that if your personal possessions are damaged by a flood or fire caused by a neighboring unit, the neighbors would cover the costs, however, if you don't have insurance, you will be responsible for the costs. So, it is better to be safe than sorry and beneficial to get tenant insurance.