What is tenant insurance?

What is tenant insurance? 

In its most basic form, tenant insurance protects you and your personal items if you rent your home. But according to the Insurance Bureau of Canada (IBC), tenants are also legally responsible for property damages—accidental or otherwise—and for any injuries their visitors may suffer. Tenant insurance protects you against that too. 

If you cause a grease fire, for example, and there’s smoke damage to your apartment, your neighbour’s apartment and communal areas outside of your rented space, you’ll have to cough up all related expenses. Similarly, if someone slips and falls in your rental, financial responsibility falls squarely on you, not the property owner.

“In the event that someone gets injured or you’ve damaged something unintentionally, tenant insurance is there to protect you,” says Pete Karageorgos, director of consumer and industry relations at the IBC.  

What’s included in tenant insurance? 

Basic tenant or renters insurance policies typically include three different types of coverage: 

Contents: This covers your personal items. Be sure to discuss what items are covered in basic content coverage before purchasing any policy. In some cases, it may not cover all of your valuable items (like jewellery and collections, which are subject to limits). 

Liability: Tenant liability insurance protects you if you’ve damaged property, or an accident occurs in your home and someone is injured. Most basic insurance policies cover $1 million to $2 million dollars in liability if a lawsuit is brought against you. Be sure to confirm liability coverage when looking for insurance. You can always raise or lower it based on your needs.

Additional living expenses: In the event that you have to leave your rental space while it’s being repaired, this coverage will pay for additional expenses like hotel bills, meals and moving costs (also subject to limits). The key word here is “additional.” This means it will cover anything above and beyond your regular expenses. So, for example, if your rent is $1,500 a month and you now have to pay $2,000 a month to stay in a hotel, your insurance will cover the additional $500 a month.  

How much is tenant insurance?

Tenant insurance rates vary across Canada, but standard rates fall on the lower end of $15 to $50 per month. Consider that price when looking for a rental, as you will want to factor it into your overall living costs. Having a lot of insurable items and adding on extra coverage is what drives the price point to the higher end. 

The price of home renter insurance is determined much by the same questions as home insurance itself. “How old is the building you’re moving into? What’s the size of the rental? What is the total value of your personal items that you need to be insured? If you have a lot of stuff, the insurance will be more expensive,” says Karageorgos. 

So if you’re renting a two- or three-bedroom apartment versus a one-bedroom, there are likely going to be more belongings to insure. Insurance brokers and agents can help you find the best quote for the most coverage. “The best thing to do is shop around or talk to an insurance broker who can compare prices for you and find the coverage that suits your needs,” he adds. (Read more about the cost of insurance for renters here.)

Actual cash value and replacement value: what you should know

When taking an inventory of the items you’d like insured, you’ll be asked whether you would like an actual cash value (ACV) or a replacement value policy. Replacement value policies cost more but allow you to re-purchase the damaged item at its current market value. An ACV policy, on the other hand, takes depreciation of an item at current market value into account; so while you’ll get some cash back, it’s very unlikely you’ll get back the full amount you paid for an item. 

How to get tenant insurance

Purchasing renters insurance is pretty simple. First, you can compare quotes by phone, in person or online between different insurance providers or with your broker.  If you already have insurance for auto, you can usually bundle your coverage and get a discount too. Once you’ve found a great policy and signed up, your provider will usually give you a proof of insurance document to provide your landlord.

Tenant insurance FAQs

Is tenant insurance mandatory?

Tenant insurance isn’t mandatory in Canada, but it’s a very good idea. In fact, many landlords make it a condition of rental, in the same way not smoking or no pets can be a condition of rental. That means if you don’t comply, you can be evicted. “Landlords want to make sure their tenants and their property are properly protected,” says Karageorgos.

Your landlord will likely ask to see a copy of your policy for its policy number and to review the insurance company. Rental property insurance policies are annual, requiring a review every 12 months. Your landlord may ask for a copy on renewal as well. (Read more about why your landlord may require tenant insurance here.)

Is tenant insurance the same as contents insurance?

Essentially, yes. Tenant insurance, renters insurance, apartment insurance and content insurance are often used interchangeably. 

Doesn’t my landlord’s home insurance protect me? 

The landlord’s insurance protects the building structure, which includes all structural items that came with your rental unit—from walls and pipes to stoves and bathtubs, but it will not cover your personal belongings, like musical instruments or electronics. It won’t cover damage caused by you or your friends, either, and it won’t cover injuries that happen to you or your guests inside your rental (personal liabilities). Nor will the landlord pay for you to live elsewhere if repairs are needed.

Does tenant insurance cover water damage?

Not all tenant insurance plans are the same, and some do not cover water damage caused by floods or sewage backup. However, if there is a leak in the unit above that destroys your new leather armchair, tenant insurance usually has you covered. Be sure to ask about water damage when securing a plan.

I need to make an insurance claim—now what?


You’ll need a copy of your insurance policy and any other detailed records itemizing your insured belongings. From there, Karageorgos says the process is always the same for everyone: “Document the damage. Take pictures to show what items were damaged and the source of the damage (if you are able). And never throw anything out before calling your insurance company.”