Tenant Insurance 101: Understanding Basic Coverages

Last Updated: Jun 2023 | Categories: General, Home & Renters Insurance

A cartoon man faces back to the image, holding keys and looking up at a high rise apartment building. A small red bird flies next to the building.

Tenant Insurance is a type of insurance that not a lot of people have thought about until recently. Whether that’s because losses are becoming more common, or because most landlords are now requiring it, it’s a type of insurance you really do need. (See our blog post – 3 Reasons You Really Should Have Renters (Tenants) Insurance)

Just because you don’t own a building, doesn’t mean you cannot be found responsible for damages. Also – you own everything in your apartment and need coverage for your stuff! Your belongings are treasured items that represent who you are and where you’ve been – tenant insurance will protect that. Our team is here to help you get covered – click here to get a quote online.

Tenant insurance carries a lot of the same coverages as home insurance, however, because there is no risk of rebuilding an entire house, the price of tenant insurance is much more budget friendly (ofen as low as $15-30 per month!). Here are some of the included coverages when you purchase a tenant insurance policy.

Contents Coverage

Just like a bird carefully chooses twigs and leaves to build its nest, your personal belongings turn your rental space into a cozy home. Contents coverage is essential for protecting your belongings, including furniture, electronics, clothing, and other items that make your apartment uniquely yours. When you buy tenant insurance, you choose the contents limit – this is the maximum amount the policy will pay out in the event of a loss. So, make sure you really think about every item you own, and what the cost to replace it would be – this will be your contents limit.

Liability Coverage

Accidents can happen – even in the safest places, the unexpected can pop up out of nowhere. Liability coverage provides protection in case you accidentally cause damage to your rented premises or if someone gets injured while visiting you. Liability coverage is one of the most important coverages available – that’s why it comes on every type of insurance policy!

Additional Living Expenses

Most tenant policies include additional living expenses – and you’ll want to check with your broker to make sure yours does! If anything does happen to your rental unit that makes it unlivable – this is the coverage that will save your tail. This coverage provides money for hotel stays, meals, supplies, and any other emergency costs you come across while displaced. It’s a load off your mind when you’re already stressed from a loss.

These are just the very basic coverages that come included in most Tenant Insurance Policies. There are additional, optional coverages you should always take advantage of to make sure you are protected. Coverages such as sewer back up or overland water, when added to your tenant policy, can help cover the cost of replacing belongings or fixing damage in the event of water-related damage. A lot of peope think they don’t need this coverage if their unit isn’t on the bottom floor, however this is not true! For example, if your toilet overflows or the neighbour above you has a leak, there could be water damage to your unit or surrounding units that your policy can help cover.

Also available are special insurance amounts for valuable items such as artwork, collectables, or even an expensive new iPhone!

Remember that your rental is your home – so protect it like one, and save yourself a lot of trouble down the road in case something happens. Click here to get a tenant insurance quote.