What is tenant insurance? What it covers and why you need it

Moving to a new place as a renter can be exciting. You’re all unpacked, you’ve found the perfect spot for your favourite plant, and you’re ready to get out and explore a new city. The last thing you’re thinking about is something going wrong in your new home. But that doesn’t mean it won’t.

Most renters know that their landlord's insurance policy won’t cover their belongings if they’re damaged. Fewer are aware that a specific type of coverage does exist to support them when they need it most.

Tenant insurance provides financial security to renters when unexpected costs land on their doorstep. That could be because of something like a fire, or even because of legal action brought against them. In this guide, we’re going to take a closer look at how tenant insurance works, why you might need it, what it covers, and everything else that matters. 

What is tenant insurance? 

Tenant insurance (also called renters insurance) is a type of policy which protects you financially by providing coverage for the damage or theft of your personal belongings, liability for property damage or injuries, and help with additional living expenses if the home you’re renting becomes uninhabitable.

It exists to help you manage unexpected or sudden costs which you might not be financially prepared for. While it won’t necessarily cover every cent – and won’t restore damaged items back to working condition – having this kind of insurance makes replacing them, paying for temporary accommodation, or even finding the money for legal fees much faster and easier.

Why do I need tenant insurance?

Someone might need tenant insurance for a number of reasons, but, at its core, the driving factor for getting a policy is for renters to protect themselves financially. Having a policy you can rely on can save thousands if disaster strikes. 

But don’t just take our word for it. Here some recent payouts which renters in Canada used to help them manage these unexpected losses:

• $2,831 for water damage in Alberta

• $5,437 when a flooded apartment meant an Ontario resident had to find temporary accommodation 

• $9,000 for theft during a break-in in BC

• $8,750 when a fire destroyed a renter’s home in Ontario 

Internal APOLLO claims data based on claims reported January-to-March of 2026.

While each specific claim and payout will differ depending on circumstance, these numbers highlight the importance and necessity of having a policy as a renter. Without one, you could be on the hook to cover these costs alone. 

What does tenant insurance cover?

Tenant insurance covers your belongings, as well as other unexpected costs which you might not have the money to pay for up front. All policies and providers will cover different factors, but the following components are a core part of almost any tenant insurance policy. 

Contents coverage

“Contents” is insurance-speak for anything you own. That means clothing, electronics, furniture, or even just your normal everyday items. While these items might not always seem hugely valuable individually, combined they can add up to tens of thousands if you had to replace them all at once.

Contents coverage will apply if your items are damaged, destroyed, or stolen – as long as the event which caused this was covered under your policy. Common contents coverage events are incidents like fire, theft, or water damage from a leaky pipe (although not all kinds of flooding will be covered as part of a basic policy). 

Sometimes contents coverage will also apply to items that are damaged or stolen outside of your home. That could mean belongings left at a friend’s house, somewhere like a coffee shop, items in a storage locker, or even overseas as part of a vacation.

Personal liability coverage 

Personal liability coverage (which is sometimes also called tenant liability insurance) will help to protect you financially in circumstances where you’re held legally responsible for damages to the building you rent, or someone getting hurt at your property. It can help to pay for legal costs, any fees which need to be paid to someone for medical expenses, and any repair bills from damage you caused.

Nobody wants to be sued, but it can happen if someone visiting the home you’re renting gets hurt. A landlord can also bring action against you if their property is damaged, even if it wasn’t your fault. Leaks from neighbouring apartments can spread into yours, and, if the damage is bad enough, you might be the one who’s asked to pay for repairs. 

While having this kind of liability cover won’t stop you from facing these uncomfortable situations, it does at least provide some level of financial security to help you manage them better. 

Additional living expenses (ALE)

Whether you’re held responsible or not, sometimes your home can become so damaged that you’re no longer able to live in it. Without tenant insurance, you’re left having to foot the bill all on your own. That means factors like meals and paying rent or hotel costs for days, weeks, or even months.

That can add up quickly. Especially if you also have pets who need specialist accommodation. A tenant insurance policy should help to cover these costs.

Enhanced coverage 

As the name suggests, enhanced coverage is not something which is included as standard in your tenant insurance policy. However, it’s almost always possible to include add-ons to make your coverage more robust. This will vary by provider, but some important things to consider are factors such as: 

• Enhanced water coverage for different types of flooding 

• Specialist lifestyle-focused add-ons which provide larger amounts of coverage for expensive items like electronics, jewelry, and sporting equipment 

• All-risk coverage, which protects against almost any form of damage or incident 

Enhanced coverage will mean your premiums are higher, so it’s worth weighing up what your priorities are. 

What tenant insurance might not cover

Despite how valuable it can be for renters, tenant insurance won’t necessarily cover every incident in (or outside of) a home. Making a claim will only provide financial support if the event which caused the damage or injury is covered as part of your policy. 

For that reason, it’s really important for you to check your policy’s terms and conditions thoroughly when signing up. Some examples of where a policy might not kick in are things like: 

• Uncovered events. Always check the terms and conditions of your policy to work out what events are or aren’t covered. For example, flooding from a leaky pipe tends to be covered, but water that’s come from a sewer backup might require an enhanced package. 

• Some high-value items. Likewise, if you don’t have a robust enough level of contents coverage, your more expensive items may not be covered. Rare collectibles, fine art, and jewelry could require upgraded coverage to guarantee that you’ll be paid out the replacement cost. 

• Subletting. If you decide to sublet your home for any reason, your tenant insurance policy is very unlikely to cover any damage the new occupant might do to the property. 

• Roommates. Most tenant insurance policies don’t let you include roommates as part of your agreement. However, at APOLLO, this is something that we do allow. Just make sure that adding a roommate to your policy is something you feel comfortable with. 

How to choose the right amount of tenant insurance coverage 

Tenant insurance policies can sometimes be very customisable. Having different add-ons which can be matched to someone’s lifestyle is great for renters – but only if they know what kinds of coverage to look for in the first place. 

Here are some common factors which might help decide how much coverage a person needs: 

Is it mandatory to get a tenant insurance policy? 

Whether or not tenant insurance is mandatory depends on the requirements of a landlord. It’s quite common in Canada for landlords to ask renters to get a policy, as this adds an extra level of protection for them. This isn’t always a guarantee, though. Some landlords may not ask for it, while others will include it as a stipulation in your lease agreement. 

If they do make it a requirement, and you can’t prove you have a policy, you could face eviction – not because you don’t have tenant insurance, but because you would have broken a clause in your rental contract.

Thankfully, even if you are required to have a policy, the benefits will outweigh the costs. As this guide has shown, you could save thousands in damages thanks to a tenant insurance policy. 

How much does tenant insurance cost?

The amount you might pay for tenant insurance will be different for everyone. While APOLLO has policies which start from $13 a month, and an average monthly cost of $21, the actual cost of your policy will be determined by a number of factors. 

Think of it this way: two people of the same age could have identical levels of coverage and live in the same city, but pay slightly different amounts for their tenant insurance. That might sound confusing, but it’s because all insurance providers will assess each policy on a situation-by-situation basis. 

Some of these metrics might be things that are within your control, while others could be related to where you live and your history with claims. Here are some of the most important metrics which make up the price of your premiums:

• What kind of coverage you choose. The value of your items and the level of liability coverage you need will play a huge part in your price. The more financial protection you want, the higher your premiums will be. You’re paying more to set yourself up for a potentially better payoff if you do make a successful claim.

• Where you live. Densely populated cities with higher evidence of theft and vandalism might mean your policy is treated differently to someone who lives in a quiet rural village with minimal crime. 

• Building type. Apartments, houses, and condos all have different levels of risk attached to them. The same can even be true depending on which floor of a high-rise building you live on. 

• Deductible. Your deductible is the amount which is taken off your claim before it’s paid to you. For example, if you had a successful claim for $2,000, with a deductible of $500, you’d be paid $1,500. Higher deductibles mean lower payments, while lower deductibles mean you pay more for your policy. 

• Your claims history. If you have made several claims in the past, you may have to pay more for your next policy. 

• Safety devices and upgrades. If the property you live in has security systems, or devices which help prevent water damage (like shut-off valves or leak detectors), your premiums could also be lowered. 

How to save money on tenant insurance 

Luckily, tenant insurance is often very affordable to start with. That said, it’s always nice to save a few dollars whenever possible. Keep the following in mind if you want to try and reduce your premiums. 

• Pay as a lump sum. Most tenant insurance policies work the same way as other types of insurance. You can choose to pay either monthly or in one annual lump sum. Choosing monthly premiums will often mean you pay more across the course of a year, when compared to an annual payment. The trade-off is that you’re also breaking down your payment into 12 smaller bitesize chunks. What works best for your budget is up to you, but a one-off annual payment is almost always cheaper in the long run. 

• Pay a higher deductible. When you choose to pay a higher deductible as part of a successful claim, you’re acknowledging that you will be given less of a payout. The trade-off of this is that you won’t have to pay as much money for your policy itself. 

• Combine your policy with a roommate. Insurance provided by APOLLO allows you to combine your policy with those you live with. This can halve your premiums, or even split them by three or four times as much depending on how many of you there are. As we’ve discussed though, not all tenant insurance policies will allow this, so it won’t always be an option. 

• Shop around. Every insurer’s pricing is going to be different. Make sure to get more than one quote to find the best value. We make that easy for you, as part of our Best Price Guarantee. 

Tenant insurance FAQs

Want to learn more about tenant insurance? Make sure to check out these useful FAQs to discover more about this all-important policy type. 

Are renters and tenant insurance the same thing? 

Yes, renters insurance is the same thing as tenant insurance. They’re the same kind of policies, just given different names.

Does tenants insurance cover collectibles?

Collectibles may or may not be included as part of a policy. And, even if they are, your collection might be expensive enough to take up the majority of your contents coverage amount without factoring in necessary items you will also need to replace. 

Work out roughly how much your collection is worth by having it appraised, then adjust your contents coverage in accordance with this. Also be sure to check if a provider is willing to cover them in the first place, or if you’ll have to get either enhanced coverage or a dedicated policy just for them. 

Are there different types of tenant insurance?

There are different types of tenant insurance, but what makes them different tends to be the weighting they place on specific coverages, rather than the purpose of your policy. They all exist to provide financial protection, but some might focus more on the liability factor, while others are designed to offer more contents coverage. 

How is tenant insurance different from landlord insurance?

Landlord insurance protects the property owner’s physical building, rental income, and liability. It doesn’t financially protect a tenant. That’s why having your own policy is a smart idea if you’re a renter. 

Is tenant insurance worth it?

The financial protection which tenant insurance offers is hard to beat. That’s why finding a policy which works for you is always a smart decision.