RST Exemptions on Property Insurance

June 26, 2020 3 min read

It’s Happy Manitoba Day Too! RST Exemptions on Property Insurance

Along with celebrating Canada’s birthday, Manitobans have another reason to celebrate July 1st. Manitoba Retail Sales Tax (RST) exemptions come into effect on Wednesday and this means big savings on the total cost of insurance for Manitobans.

The taxation rules are not as clear cut as they could be but the main theme is to give Manitobans relief on tax for property insurance. Having said that, there are some gray areas to navigate. We’ve got you on this….. read on to understand the impact of this change and how it affects your property insurance.

Here is a breakdown of taxable and exempt insurance coverages. This will apply when purchasing or renewing insurance after June 30th. Note that, as we and our insurance company partners are always working well ahead of your policy renewal date, we are catching all policies that may have been issued and should now not include tax. We’ve been trying to catch them as the new rules have been announced but if you have any concerns about your policy, please reach out and we will make sure the proper tax rules have been applied.

Exempt insurance coverages for individuals:

  • Home ,condo, renters or seasonal property located in Manitoba.
  • Mortgage insurance
  • Boat insurance if the boat is included as part of your property insurance policy
  • Builder’s risk insurance for new properties being built within Manitoba
  • Personal cyber and legal liability coverage if it is included as part of your property insurance
  • Coverage for a home based business if it is insured as part of your overall property insurance policy
  • Off road vehicle insurance

Taxable insurance coverage for individuals:

  • Any stand alone cyber or legal liability insurance
  • Event/liquor liability insurance
  • Umbrella liability insurance

Exempt insurance coverages for businesses and non-profits:

  • Commercial premises including structures and contents unless the majority of the contents are deemed as inventory
  • Course of construction and dwelling under construction policies
  • Not for profit all inclusive property package policies that include coverages listed for directors and officers, errors and omissions, abuse and cyber

Taxable insurance coverages for businesses and non-profits:

  • Any stand alone liability policies including:
    • Errors and omissions
    • Directors and officers
    • Cyber liability
    • Legal liability
  • Stand alone inventory coverage
  • Bonds
  • Truckman’s general liability
  • Motor truck cargo insurance
  • Aviation policies
  • Stand alone boiler and machinery coverage
  • Special events insurance

Exempt insurance coverages for farm and agribusiness:

  • Farm property and operations including structures and contents
  • Equine policies
  • Livestock policies
  • Crop hail insurance
  • Custom applicators coverage
  • Crop input dealers policies

Written by

Alex Harms is part of our marketing team at MIG Insurance and she specializes in writing content to make insurance easier to understand for our clients. She obtained her Bachelors in Commerce (Hons.) at the Asper School of Business and worked with MIG as a broker during her studies and now fulltime in a Marketing & Operations role. She has taken on many tasks her at MIG but enjoys the challenge. Outside of work she enjoys spending time with her family as well as her dog Murphy, out at the lake which is their favourite spot!