Why you need insurance as a renter
Landlords often require tenants to have their own insurance policy to protect their liability exposure and personal belongings. A landlord’s insurance policy only covers loss or damage to the home that is caused by an insured event such as fire, theft or water. As a renter, you’re liable for accidental damage you cause to the property. You’re also responsible for insuring your belongings such as your clothes, jewellery, electronics and any furniture or appliances you own are lost or damaged by an insured event.
Protecting your personal belongings with a tenants insurance policy is a smart decision. You may think that you don’t own much, but if you had to replace everything you own, it does add up to a substantial amount.
What does a tenants insurance policy cover?
Personal property
This coverage helps pay for loss or damage to the personal property in your rented home such as clothes, furniture and appliances caused by an insured event. This includes the items that are in the garage, storage locker, or shed that’s part of your rental home.
Example: There was a fire in your apartment building that damaged your unit, including the small appliances that you own, as well as your clothes, laptop and bicycle. This coverage will pay for the repair and replacement of these items.
Tip: You choose the amount of coverage from which your premium is calculated. Make sure that you choose a coverage amount that would sufficiently cover all your personal belongings in the event of a total loss. It’s best to review this yearly as the value of your belongings may have changed.
Personal liability
This coverage helps pay for your legal costs if you accidentally hurt someone or damage their property anywhere in the world.
Example: A person came by your front door and fell over some items that you left on the porch. The person sued you for injuries and damages as a result of the fall. Your tenants policy helps pay for your legal costs.
Tenants legal liability
This coverage helps pay for your legal costs if you accidentally damage the rental unit or the landlord’s property.
Example: You accidentally left a pan on the stove, causing oil to overheat and caused a fire that destroyed the stove, walls and ceiling. Tenants legal liability helps pay for the cost to repair the damage.
Additional living expenses
If you need to leave your home, such as in the case of a mandatory evacuation order, this coverage helps pay for temporary accommodation and meals.
Example: A tornado swept through your neighbourhood causing widespread damage to the area, as well as to the home you are renting, making it unlivable. This coverage helps pay for your expenses to temporarily relocate such as hotel room, meals and gas.
Additional coverages for purchase to add to your tenants insurance policy for even more protection
Water
A tenants insurance policy only covers some types of water damage. It doesn’t cover water damage due to sewer back-up or overland water, which are coverage add-ons that can be purchased.
Umbrella insurance
Also known as personal liability umbrella insurance, is an additional layer of liability coverage that goes beyond the coverage amount of your primary tenants, auto, or other personal insurance policies. It provides extra protection for you and your assets in case of significant claims or lawsuits arising from personal injuries or property damage.
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The content on this page is for information only. The insurance products described are subject to terms, conditions, limitations and exclusions that are outlined in the policy wording. Please refer to the policy wording for complete details.