Tenant insurance: cheap, and more important than renters think
Your landlord's insurance covers the building — not your belongings, and not your liability. Tenant insurance covers both, for a modest premium.
What your landlord's policy does — and doesn't — do
Your landlord insures the building structure. That's it. If a fire, flood, or theft destroys your belongings, or if you accidentally cause damage or injury, the landlord's policy does nothing for you — and may come after you to recover what it paid. Tenant insurance fills that gap for a small monthly premium.
The three things it covers
| Coverage | What it does | Why it matters |
|---|---|---|
| Contents | Replaces your belongings if stolen or destroyed | Replacing everything you own costs more than you'd guess |
| Additional living expenses | Pays hotel and extra costs if your unit becomes uninhabitable | A fire two floors down can displace you for months |
| Personal liability | Covers damage or injury you accidentally cause | One overflow that wrecks the units below can be a six-figure claim |
That liability coverage is the part people forget and the part that most justifies the policy.
Worked example
A kitchen fire in Sarah's rented apartment spreads water and smoke damage to the two units below.
| Amount | |
|---|---|
| Damage to other units (their repairs, contents) | $45,000 |
| Sarah's destroyed contents | $20,000 |
| Hotel + meals for 6 weeks | $6,000 |
| Sarah's cost with a tenant policy | Her deductible only |
| Sarah's cost without one | Potentially the full $71,000 |
At roughly $20/month, the policy pays for itself many times over the first time anything goes wrong.
Getting the details right
- Replacement cost, not actual cash value — so a five-year-old couch is replaced new, not depreciated.
- Enough contents coverage — do a quick room-by-room inventory; the total is usually higher than people expect.
- Sub-limits — jewellery, bikes, cameras, and electronics have low per-category caps; schedule valuable items separately.
- Liability limit — $1–2 million is standard and cheap; take it.
- Roommates — usually need their own policy; being named doesn't reliably cover them.
Your checklist
- Confirm the landlord's policy covers only the building (it does).
- Inventory your belongings and set contents at replacement cost.
- Take at least $1–2 million liability.
- Check sub-limits and schedule high-value items.
- Model your deductible with the Deductible Optimizer.
Frequently asked questions
- Is tenant insurance mandatory in Canada?
Not by law, but many landlords require it in the lease. Even when it isn't required, the liability coverage alone makes it worth having.
- What does renters/tenant insurance cover?
Your contents, additional living expenses if your unit becomes uninhabitable, and your personal liability for damage or injury you accidentally cause.
- Does my landlord's insurance cover my belongings?
No. It covers the building structure only. Your belongings and your liability are your responsibility.
- Does tenant insurance cover my roommate?
Generally not unless they're on the policy. Roommates should each carry their own coverage.
- How much does tenant insurance cost?
Typically about $15–$30 per month, depending on your city, coverage amount, and deductible — one of the best value-per-dollar policies you can buy.
Sources
Premium figures are illustrative ranges. Educational only — not insurance advice.
Educational only — not insurance advice, and no products are sold here. Robert is a mascot, not a licensed advisor. See our disclaimer.