Tenant Insurance: What It Covers and Why Landlords Ask

What it usually covers

• Your belongings. Furniture, electronics and clothing that are damaged, stolen or destroyed by events like fire or water damage.
• Personal liability. If you accidentally damage the building or injure someone, for example through a kitchen fire or an overflowing bathtub.
• Additional living expenses. Hotel and food costs if you can't stay in your home after a covered loss.

What it usually doesn't cover

Policies have exclusions, and they vary. Flooding, sewer backup and earthquake damage may require optional add-ons, and expensive items such as jewellery or bikes may have lower limits. Always read what's included before you buy.

What it costs

Tenant insurance is usually inexpensive, often somewhere around $15 to $35 a month depending on where you live, the coverage you choose and your deductible. Many insurers offer a discount if you bundle it with car insurance, and paying annually can work out cheaper than paying monthly.

How to choose a policy

1. 1

   Step 1: Estimate what you own

   Walk through your home and add up what it would cost to replace everything. People usually underestimate.

2. 2

   Step 2: Compare quotes

   Get at least two or three quotes from insurers or brokers. Compare coverage, not just price.

3. 3

   Step 3: Check the deductible and limits

   A higher deductible lowers your monthly price but means you pay more if you make a claim.

4. 4

   Step 4: Give your landlord proof

   If your lease requires insurance, send a copy of your policy confirmation before you move in.