Tenant Insurance Canada

Get the best tenant insurance from anywhere in Canada, from the top home insurance companies. Renters insurance that has you covered!

Renters home insurance

Tenant insurance is worth it

Here, is why:

What does tenant insurance cover?

Renter’s insurance is very similar to other types of home insurance but excludes coverage for the actual building itself. Suffice it to say that since the building belongs to someone else, insurance coverage for the building would be purchased by the property owner. But like other habitational insurance policies, tenant insurance addresses other risk exposures a tenant could face.

Tenant Insurance Liability

Protection from liability you’re legally liable for, subject to conditions, limitations, and restrictions. Tenants’ liability coverage usually applies anywhere in the world! An example would be accidentally knocking over an old lady causing her to break her hip, while on vacation overseas.

Another example is negligently causing damages to the building you’re renting, such as water or fire damages are also covered by tenant insurance.

Your tenant insurance policy also responds in defending a legal action made against you, including expenses and third-party indemnification up to policy limits.

Voluntary Medical Payments

Voluntary Medical payments coverage is an extension of your liability portion of the tenant insurance policy. It provides coverage for reasonable medical expenses to anyone who may have been accidentally injured on your premises, or if you cause unintentionally harm to someone, anywhere in the world. The coverage is available even though you may not be legally liable.

Voluntary Property Damage Payments

This coverage is also an extension of the liability portion of the Tenant insurance policy and is very similar to Voluntary Medical Payments. The difference is that this coverage deals with property damages instead of injuries. This coverage will pay for unintentional direct damage you cause to property, even though you may not be legally liable.

Here’s an example: your child accidentally throws a baseball threw your neighbour’s window. Instead of your neighbour having to go through their own home insurance company to file a property claim, and be subject to a deductible, you can elect to pay with your policy without all the hassle.

Contents Insurance Coverage

Protection for your personal contents and belongings is probably the most notable feature of tenant insurance.  Most tenants who purchase renter’s insurance do it mainly to protect their personal belongings.

Contents insurance covers the cost to repair or replace your personal property, including clothes and household items!

Additional Living Expenses Coverage for Renters

Tenant or Renter’s insurance includes a special coverage named “additional living expense”. Additional living expense insurance coverage is found usually on all home insurance and habitational insurance policies.

It provides insurance coverage for any extra expense you might incur while your dwelling is considered unfit for occupation, and the evacuation from your dwelling is caused by an insured peril. An example would be having your neighbour’s apartment flood your unit to the point where you cannot occupy the space. Additional expense insurance coverage would help for lodging and food, over and above what you normally would pay if the loss did not happen.

Additional living expense coverage in a tenant’s insurance policy is usually a percentage of the contents coverage you purchased, rather than the building as in a homeowner’s insurance policy.  For example, the tenant policy covers your personal property, or contents up to $100,000, and offers 20% of the content value towards additional living expenses which would be 20,000 that could be applied to that coverage if needed.

Voluntary Compensation for Residence Employees

Not many people are aware of this standard coverage in a Renters Insurance policy. This coverage provides medical benefits if a resident employee (i.e Butler, or Live-in Maid) is injured or dies accidentally while working for you, even though you are not legally liable.

Liability Insurance

Have peace of mind knowing that you, as a Tenant, have legal liability insurance coverage, anywhere in the world.

Contents Insurance

Contents insurance comes standard with Tenant Insurance, however, coverage limits would be specific to what you own.

Additional Living Expenses

If your dwelling is deemed unfit for occupation, for example, by fire or smoke, who will pay your alternate accommodations?


Do I Need a Tenant Insurance Policy?

Although Tenant Insurance isn’t required by law, it’s a good idea to have it if you’re renting your home. The following are some examples to help you decide:

  • The apartment you’re renting has fire and you’re forced to evacuate until the apartment is fit for occupation. Tenant insurance will pay for alternate lodging until your dwelling is suitable to live In again!
  • You’re on vacation in a different country and you accidentally caused someone to trip and fall. Tenant insurance covers your personal liability anywhere in the world!
  • Your dwelling gets broken into and all your personal belongings get stolen. Tenant insurance covers this too.
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Tenancy insurance

Types of Tenants insurance in Canada

There are three main types of Tenant or Renters insurance policies:

Basic or Named Perils Tenant Insurance

Basic form Tenant insurance or Named Perils is the most limiting of coverage compared to all other forms of home insurance.  The perils to which the tenant insurance policy responds to are specifically stated. Insurance coverage only responds if loss or damage occurs due to a named peril. 

Broad Form Tenants Insurance

Broad form Tenants insurance represents a broadening of insurance coverage compared to the named perils or basic type policy.  The broad Tenants policy is somewhat of a middle ground between basic and comprehensive coverage.

Comprehensive or All Perils Tenant Insurance

The Comprehensive Tenant insurance policy, also known as All-Risk home insurance, is the most expansive in insurance coverage.  The scope of coverage is determined by the exclusions in the policy. Therefore, if the peril is not excluded, insurance coverage should be in force.

Choosing the right home insurance policy requires the help of an insurance professional.

Contents Coverage in Tenant Insurance

Tenant insurance, or home insurance for renters, is not just about content insurance coverage, but a lot more! Third-party liability coverage and Additional Living Expenses are coverages included in Renters Insurance!

More than just contents insurance

How Much Content Insurance do I need as a Tenant?

To determine how much content insurance you need, figure out the value of your possessions and make sure to purchase enough coverage for your belongings. Most Tenants want to know how much contents coverage they need to cover their personal belongings, but often overlook other important coverages included in a Tenant insurance policy, such as protection from third-party liability and Additional Living Expenses. Liability insurance for renters protects you anywhere in the world, for damages or injuries you may cause to others due to negligence.

Specifically Suited for Renters home coverage

Tenant insurance, or home insurance for renters, is not just about content insurance coverage, but a lot more! Third-party liability coverage and Additional Living Expenses are coverages included in Renters Insurance!

How much is Tenant insurance for Renters?

The average cost of renters or tenant insurance in Canada depends on the province and city you live in. Here’s a chart that outlines the average price of renters insurance by Canadian Province:

Renters Insurance in Vancouver is approximately $35 a month, or $420 a year.

Renters Insurance in Ontario is approximately $27 a month, or $330 a year.

Renters Insurance in Alberta is approximately $25 a month, or $300 a year.

Renters Insurance in Manitoba is approximately $20 a month, or $240 a year.

Renters Insurance in Saskatchewan is approximately $20 a month, or $240 a year.

Tenant Insurance in NewBrunswick is approximately $29 a month, or $355 a year.

Tenant Insurance in Nova Scotia is approximately $17 a month, or $200 a year.

Tenant Insurance in Newfoundland and Labrador is approximately $15 a month, or $180 a year.

Renters Insurance in the Yukon is approximately $20 a month, or $240 a year.

Renters Insurance in the PEI is approximately $18 a month, or $216 a year.

Renters Insurance in Quebec is approximately $27 a month, or $330 a year.

Renters Insurance in Nunavut is approximately $10 a month, or $120 a year.

Renters Insurance in the North West Territories is approximately $12 a month, or $144 a year.

How the cost of tenant insurance is priced

Premium calculation in tenant insurance

Premium calculation for Tenant or Renters insurance is based on the following criteria:

Construction:  this includes the type of material used to construct the building, the age of the building, the number of stories, and the type of fuel used by the heating system.  

Occupancy: refers to how the property will be used by the Tenant. This includes the number of occupants, and description of the operation (i.e personal dwelling or commercial operation), the hazards associated with the occupancy, and measures used to reduce those hazards.

Protection: this refers to the building’s proximity to the closest fire station. It also includes private protection sprinkler systems, fire brigades, and fire alarm systems. 

Exposure: this refers to the likelihood of suffering a loss due to close proximity to other risks or potential causes of loss. This can include other buildings nearby, or even within the same building, the Tenant occupies.  Natural hazards like adjacent forests or a body of water are also considered additional exposures. 

Experience: this refers to how long you have had property insurance (Tenant or Homeowners). The longer your history of continuous Tenant or Homeowner insurance, the more you can save.

Claims: this refers to your claim experience. If you have had many Tenant or Homeowners insurance claims, the more you could be paying, especially if you don’t qualify for a claims-free discount, which is substantial in property insurance.

What is the Best Tenant Insurance in Canada?

Finding the best Tenant Insurance in Canada requires getting as many quotes as possible in order to compare prices and also insurance coverage.

Once price and coverage are compared and contrasted, between many companies, the next step is to look for positive reviews on the company. Check their Google Business Profile for good reviews.

Another good source for helping you find the best Tenant insurance is referrals from friends and family. Some of your friends or family may have had a claim experience with the provider and would be able to tell you if they were happy or not with the way the company handled a Tenant claim. After all, the ultimate test for an insurance company is the way they handle a claim if a loss occurs!

ACV (Actual Cash Value) vs replacement in the Basis of Claim Payment in tenant insurance

There are three claims settlement options when it comes to Tenant Insurance:

  1. ACV or Actual Cash Value – ACV is defined as the value of repairing or replacing the said damages with an equivalent piece of property, of like kind and quality, subject to depreciation.  The main feature of Actual Cash Value (ACV) is that depreciation is applied to the tenant insurance claim settlement.

For example, if your 4-year-old phone was damaged beyond repair due to an insured peril (fire), the claim settlement would be based on the fair market value of the phone, immediately prior to the loss.  So, whatever the phone was worth at the time of loss, is what the ACV claim settlement will be. 

  • 2. Replacement Cost –  replacement cost coverage on a Tenant policy works a bit differently. Instead of applying depreciation to the claim settlement, the claim will be based on the cost to repair or replace (whichever costs less) with property of like, kind, and quality, without any deduction for depreciation.

For example: take the above example and apply it to a replacement cost scenario. If the 4-year-old phone was damaged beyond repair, the Tenant policyholder would be entitled to a new phone, since depreciation is not taken into consideration. 

Actual Cash Value vs. Replacement Cost
  • 3. Agreed Value –  agreed value insures contents to a stated or predetermined amount.  This type of claim settlement valuation makes it easier to put a dollar amount to items where it might be difficult.  For example, jewelry, paintings, works of historical value, antiques, and stamp and coin collections.  

For example, if you have jewelry or antiques, you may want to insure those to value, or you may not get full indemnity or are subject to standard limitations if you do not.

  • Combined Discounts
  • Continuous History of Tenant Insurance

Is Tenant Insurance Mandatory in Canada?

Tenant Insurance is not mandatory in Canada. There is no law that stipulates that Renters require home insurance. However, a landlord may urge you to purchase coverage to fulfill lease requirements.

The benefits of Tenant or Renters Insurance over-shadows the concern of whether it’s mandatory. Check out these other benefits:

Combined Discounts

Most Tenant insurance will offer substantial discounts, up to 30% or more for having multiple lines of insurance with the same company. i.e auto insurance

History of Continous Home Insurance

Insurance companies offer savings for people who have had a continuous history of being insured with tenant or home insurance. Tenant insurance counts towards home insurance experience, which would reduce your cost!

Does tenant insurance cover water damage?

Tenant insurance covers some kinds of water damage losses, while it excludes other types.

The Tenant insurance policy should cover you in instances where your personal belongings get damaged or damaged beyond repair, due to water-related events, such as sewer -backup or floods.  Some insurance policies may cover water damage from burst pipes or leaking appliances, depending on the scope of coverage. 

However, Renters Insurance typically doesn’t cover water damage as a direct result due to sewer-backup, flooding, or water seepage. There is extra coverage you can purchase to address additional water risk exposures. 

Optional add-ons for Tenant Insurance

There are many other add-on features in a tenant insurance policy in Canada, that many people are not aware of. Keep in mind that all the following have conditions, restrictions, and limitations in coverage.

Credit Card, Forgery, and Counterfeit Money 

Covers theft, forgery, and unauthorized use of your credit card, subject to limits.

Change of Temperature

Coverage for personal property that has been damaged or destroyed by a change in temperature due to an insured peril.

Damage to Dwelling 

Option to apply a specified amount from your contents coverage to pay for the damages to your dwelling.

Debris Removal

The cost of removing debris caused by loss or damage to the property insured by this policy as a result of an insured peril.

Declaration of Emergency

Effective date or expiry date of the Tenant policy is extended due to an emergency declared by the Canadian Authority.

Lock Replacement

Coverage to re-key or replace the locks on your dwelling if your keys are stolen provided a police report is filed.

Property Removed 

If you need to remove your property from your premises to protect it from loss or damage, insurance stays in force.

Extended Care

Personal property owned by a family member and normally kept at a Resident Care facility.

Fire Department Charges

Reimburses fire dept. charges for attending your premises to save or protect insured property from damage or loss.

fraudulent Claim – Monetary Reward

A reward to any person who provides information leading to the denial of a fraudulent claim.

Identity Theft 

Reimburse you for any expenses and costs incurred due to identity theft.

Inflation Protection

The Tenant policy automatically increases the amounts of insurance due to inflation.

Moving to Another Home

Includes your unscheduled personal property while in transit to and at another location within Canada.

Refrigerator and Freezer Food

Covers damage or loss to food while stored in a refrigerator or freezer caused by mechanical breakdown or power outage.