What it covers, what it costs, and why no renter should be without it
Tenant insurance is one of the most affordable and valuable financial products a renter can have — yet most tenants don't carry it. Here's what it actually covers, what it costs, and exactly why you need it.
Contents coverage: your furniture, electronics, clothing, bicycle, and personal belongings are protected if damaged by fire, water, or theft. Your landlord's building insurance covers the structure — it does not cover any of your personal property. Liability coverage: if you accidentally cause damage to the building (leaving the stove on, overflowing the bathtub) or injure a visitor, your liability coverage — typically $1M–$2M — pays for the damages and legal costs. Additional living expenses: if your unit becomes uninhabitable, tenant insurance pays for hotel and temporary accommodation during repairs.
Most tenant insurance policies in Canada cost $15–$40 per month — under $500 per year. For this you typically receive $30,000–$100,000 in contents coverage and $1M–$2M in liability. Factors affecting your premium: location, deductible amount, total contents value, and claims history. Get quotes from at least three insurers: Intact, Aviva, Wawanesa, Square One (excellent for renters), and your bank's insurance arm. Bundling with auto insurance often saves 5–15%.
Fire in a neighbouring unit spreads to yours and destroys your belongings — without insurance, you replace everything out of pocket. A pipe bursts above your unit and floods your space — your landlord's insurance covers their building; your insurance covers your damaged possessions and your hotel stay while repairs are done. You accidentally leave your stove element on and start a kitchen fire — liability coverage pays for the landlord's claim for building damage. Your laptop and camera are stolen from your vehicle — covered.
Take a home inventory: video walk through every room narrating what you own and its approximate value. Store this video in cloud storage (not in your unit). Choose replacement cost coverage, not actual cash value — replacement cost pays what it costs to buy the item new today; actual cash value deducts depreciation and pays much less. For electronics, instruments, jewelry, or art, ask about scheduled items coverage for high-value pieces that exceed standard limits.
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Read All ReviewsThese guides are written for Canadian buyers, sellers, renters, and landlords and are kept current for 2026. They are for informational purposes only — not legal, tax, or financial advice. Rules vary by province; confirm details with your lawyer, accountant, or licensed real estate professional before making decisions.