Understanding fire damage and tenant insurance

A fire in your home can be devastating. An entire apartment can be destroyed in a matter of minutes by something as simple as an open flame from a candle, or a malfunctioning electrical appliance like a dryer. The result? The majority of your personal belongings lost forever, and a potential legal battle on your hands. 

That all sounds quite scary – but the good news is that a tenant insurance policy can help to support you with some of the financial hardships which go hand-in-hand with this kind of disaster. While an insurance policy can’t keep your items safe, or stop you facing legal repercussions, it can help you replace your belongings and pay for lawyer fees, court costs, and potential cash settlements.

In this guide, we’ll look at how tenant insurance can help renters who experience fire damage in their homes. From what will or sometimes won’t be covered, to your next steps after the fire, here’s everything you need to know. 

Does tenant insurance cover fire damage?

The good news is that tenant insurance will usually cover fire damage in your home. There’s not always a specific “fire protection” clause in your contract, but a fire in your home is usually considered a covered peril or insured event. That means several different parts of your tenant insurance policy should kick-in to support you financially. 

What does tenant insurance cover after a fire?

Things like personal liability coverage, contents insurance, and additional living expense coverage are all core parts of most tenant insurance policies. It’s these factors which serve as your pillars of financial protection after a fire damages your apartment or house. Here’s how each works: 

• Contents coverage. Your personal belongings are likely to be damaged or totally lost altogether after a fire. Tenant insurance can’t keep them physically safe, but it can help you afford the cost of their replacement more easily. Check your insurance policy to see how your provider pays out for their contents coverage. This will be via either actual cash value or replacement cost. Actual cash value pays out what your exact item is worth today with depreciation factored in, while replacement cost provides funds for the current value of replacing your items with a comparable model or version.

• Personal liability coverage. Sometimes also referred to as tenant liability insurance, this is an amount you receive to help you afford legal costs, or pay for the cost of damages if third-party items were destroyed in your home. Again, this type of coverage can’t stop you from facing legal prosecution, but it can help you afford some of your legal fees.

• Additional living expense (ALE) coverage. If your home is ravaged by a fire, there’s a good chance you’ll no longer be able to live in it. That could be either temporary, or permanent. While you look for short-term housing options, ALE coverage steps in to help you pay for the expenses associated with your hunt. That means things like the cost of hotels, extra rent you might have to pay, meals out (if you can’t prepare food in your new accommodation), and any additional service fees, energy bills, or commuting costs you might have. The key thing to remember is that “additional” living expense coverage only covers you for the amount more you pay than usual, not the total expense. 

The amount you’ll receive for a successful claim after a fire will vary a lot, depending on your limits, your deductible amount, the extent of the damage, and several other factors. Here are just a few examples of recent payouts from fire-related claims:

• $20,477 in Ontario after a kitchen fire from a burner that was left on

• $17,918 following damage from a wildfire in Alberta

• $2,992 after a fire at home in Saskatchewan

• $8,452 for a contents coverage claim in Alberta following fire damage

• $4,759 after a microwave exploded, causing a fire in Ontario 

• $3,587 in BC, when an e-bike battery burst into flames 

APOLLO data based on fire-related claims reported between January 1, 2026 and April 30, 2026

How much coverage do tenants need in case of a fire?

The total amount you’re covered for in damages depends on what policy limits you chose when setting up your tenant insurance. Your limits are what decide how much you can potentially claim for. If you set them too low, you may not be able to claim back the full financial value you lost. 

Each of the three core parts of your policy will have flexible limits which you decide on before agreeing to sign any contract. Here’s what you need to think about when setting them:

• Contents coverage – Create a home inventory to work out roughly how much you own. It might be tricky to know its value, but you can use our contents insurance guide as a starting point for working out how much it could all be worth. Just over 69% of renters who have a tenant insurance policy provided by APOLLO choose anywhere from $5,000 to $9,999 in contents coverage* – but that number might not be right for you. By taking an inventory, you’ll be able to work out roughly how much you could need. Also remember that in the case of contents insurance, even if you have higher limits, the value of your belongings might sometimes exceed your coverage limits. 

• ALE coverage – Knowing exactly how much your life might cost if you’re temporarily displaced is almost impossible. However, one way to think about this could be to work out what your current expenses are, then plan for “worst case scenarios”. Estimate how much it might cost to pay for all the expenses associated with a temporary move, then subtract your current bills, rent price, and other costs from the total figure. There’s no right or wrong amount of ALE coverage to have, but our policy data shows that 91% of APOLLO customers opt for the $5,000 to $9,999 range*. 

• Personal liability coverage – Court cases can be very expensive. It’s not just the cost of a lawyer that adds up, but also any potential payouts you might have to make as a result of damages caused by the fire. In total, these can range into the hundreds of thousands – and sometimes even more. Because of that, personal liability coverage tends to be a lot higher than ALE and contents insurance. Just shy of 71% of APOLLO customers selected $1m for their policy*, but it’s not uncommon to want as much as $2m for additional financial protection. 

*Based on tenant insurance policies issued by APOLLO, May 1, 2025 and April 30, 2026

Are there exceptions where fire damage isn’t covered? 

Not every scenario where fire damages your home will be covered. While most fires which start accidentally are considered covered perils, it’s important to know what may or may not see a claim denied. Here are some scenarios where you may not be covered: 

• Intentional damage. If a fire was started in your home on purpose, your claim will be denied. Deliberately setting a fire in order to claim on your insurance is a criminal act. 

• Standard wear and tear. Damage from a slow-burning electrical fault that you ignored or failed to report despite knowing about the hazard. If you notice anything which might appear to be on its last legs, report it to your landlord immediately. 

• Illegal activities. Perhaps to no great surprise, damage that happens while you are conducting illegal activities or manufacturing illegal substances are also excluded. 

How do I make a tenant insurance claim if my home was damaged by a fire?

You’ll hopefully never have to make an insurance claim, for any reason. But, if you do, it’s important to know how to. First of all, be aware that every provider will have their own process and policies. You may be asked different questions depending on who you have insurance through, while others may require additional documentation or follow specific steps before approving a claim or making changes to your policy.

Here’s are some of the things you’ll almost always have to do when making a claim after a fire: 

• Have your details ready to go. If you know you want to make a claim, your first step should be to collect all your details. That means things like your insurance policy number, the date and time of the fire, the police or fire incident report, and a summary of exactly what happened. 

• Call your provider. Once you have all your info to hand, reach out to your provider. They should be able to guide you through the process, offering advice on next steps, as well as what to do to find temporary living accommodations. 

• Document everything you see. A detailed record of all the damage which the fire caused is also important. Take photos of everything in your home, and try not to throw anything away – even if it’s beyond repair. 

• Keep an inventory. Try to write down and categorize everything that was destroyed or damaged. This will be incredibly useful as part of a contents insurance claim. Including as much detail as possible for each item is also advised. Write down stuff like brand names and models, roughly how much you think it would cost to replace each item, approximate dates you bought something, and, if possible, try to collect receipts. 

• Work with your claims adjuster. A provider should set you up with a claims adjustor. They’ll be who you work with to help assess the damage and try to work out what your claims payout might look like. 

If your claim is successful, the time period for your payouts will also vary. This all depends on the different aspects of your claim – such as ALE vs contents coverage. Sometimes this will be immediate (in the form of an emergency advance), while other payouts may come to you months down the line (once you provide examples of the additional living expenses you incurred). 

Make sure to speak with your claims adjustor to understand when and how you can expect to be paid. While they won’t guarantee anything, they should be able to provide rough timelines for payouts of successful claims. 

Fire safety and prevention advice for renters

Just as with most things in life, the best way to prevent disaster is to be prepared. You can never fully guarantee a fire won’t break out in your home, but there are ways to reduce the chances of it happening. 

• Electronics. Electrical fires are one of the most common in Canadian homes. Try to regularly check the condition of your cords, and avoid plugging too many into one outlet – such as an “octopus outlet”, which allows for multiple cords at once. Overloading these kinds of devices can cause them to overheat, leading to a fire. Larger appliances should be plugged directly into outlets, not extension cords. Also make sure that when you replace fuses they have the correct amperage. A higher amp fuse can’t be substituted for a smaller one. 

• Home heating devices. Annually inspect your heaters, and think about installing carbon monoxide detectors to notify you immediately if they’re leaking. If you’re using a woodburning stove, make sure it has proper ventilation. Also watch for any smoke which might be collecting in the room, as this is an indicator that it might need a more efficient setup. If you’re using a space heater, try to keep it at least three feet away from anything which can catch fire. In the event of an emergency, having a fire extinguisher in your room is also a good idea. Turn off your heaters when you sleep, and try to keep children and pets away from them. Finally, never leave an open flame exposed without supervision. 

• Kitchen safety. If a pot fire starts in your kitchen, cover it with a lid and turn your oven off. If you get a minor burn, run it under cool water for a minute. More severe burns will need medical attention. Just as with most electrical appliances in your home, always avoid overloading your outlets. Try to keep the amount of appliances plugged in at one time to a minimum, to put less strain on the circuit. 

• Holiday decorations. Fires from holiday decorations are another common occurrence for renters. If you’re using a real tree, water it daily, and keep it far away from candles, fireplaces, or other things that could start a fire. Make sure to check the health of all your lights before you hang them, and again be smart about extension cord usage. Never hide your wires under rugs, as a loose spark can set them alight. 

Safety tips for preparing for wildfires

Wildfires are a lot less preventable than blazes which break out inside your home. They quickly spread, and can wreak havoc on homes which are miles away from where the initial fire started. 

• Have an emergency plan in place. Having a plan in place is one of the most effective ways to react to an emergency in the moment. Make sure everyone in your household knows exactly what exit routes to take from each room of your home, as well as a safe place to meet up if you’re not all at home and need to quickly evacuate. 

• Stay in the loop. Keeping informed with ongoing or potential wildfires by following local news reports, checking weather updates, and listening to local authorities when they give evacuation orders. 

• Keep essentials and emergency kits ready. Having a pre-packed emergency kit can also make a huge difference in the event of a wildfire. Try to include provisions which will last for around 72 hours – a period in which you might not be able to find immediate temporary accommodation. 

Think about packing it with things like: 

• Water and hydration packs 

• Food which can’t quickly perish 

• A first aid kit 

• IDs and passports

• Cash 

• Any prescription medication someone needs

• A flashlight

The Canadian Wildfire Information System is a good source for ongoing updates across the country. Also keep up with what people on social media are saying. The sooner you have information at your disposal, the quicker you can act.