Written by Stephen Dyck
Tenant insurance protects you from unexpected losses, whether it’s theft, accidental damage, or needing to relocate after a fire. In this guide, we break down the must-have coverage, explain hidden exclusions, and help you determine the best policy for your needs.
Renters insurance, also called tenant insurance, is a policy that protects your belongings, provides personal liability coverage, and helps pay for temporary housing like a hotel or Airbnb if your unit becomes unliveable. While your landlord’s insurance covers the building itself, it doesn’t protect your stuff, and that’s where renters insurance comes in.
When it comes to tenant insurance, one size definitely doesn’t fit all. The right amount of coverage depends on what you own, how much it would cost to replace, and how much financial protection you want.
Contents Coverage: Think about everything you own: furniture, electronics, clothing, even kitchen gadgets. How much would it cost to replace it all? Most renters need at least $20,000 to $50,000 in coverage.
Liability Coverage: This covers legal and medical costs if someone is injured in your rental. Standard policies offer $1M, but consider $2M if you entertain often or have a pet.
Additional Living Expenses (ALE): If your unit becomes uninhabitable due to a fire, flood, or other insured event, ALE coverage will help pay for temporary housing, food, and other essential costs.
Tip: Use a contents calculator to tally up your belongings. It might surprise you how fast the value adds up. Read our article How to Calculate How Much Contents Coverage You Need for more information.
Your deductible is the amount you agree to pay out-of-pocket before your insurance kicks in. Choosing the right deductible can balance your premium cost with how much risk you're willing to take on.
For example, a $1,000 deductible will lower your monthly premium compared to a $500 one, but you’ll need to cover more in the event of a claim. It’s a personal decision based on your budget and comfort with risk.
Tip: Make sure your emergency fund can comfortably cover your deductible.
Related Read: Is tenant insurance worth it?
You’re usually able to claim your insurance for destroyed contents and additional living costs if a fire trashes your home. But tenant insurance excludes some events like earthquakes, large-scale floods, and other “Acts of God.” You need to understand what circumstances the policy might exclude so you can prepare in other ways.
Some insurers might sell additional insurance products to cover damage left by an earthquake or other events excluded by a standard policy.
A deductible is an amount of money you pay towards an insured loss. For example, if you lose $5,000 of insured items in a flood, you first have to pay your deductible to claim the remaining losses.
Choosing a higher deductible means a lower monthly premium. But if you’re stuck with an insured loss, there’s a more significant barrier to claiming your insurance. Whatever deductible you choose, you should ensure you’re prepared to pay it in an emergency.
When choosing a renters insurance policy, pay close attention to how it values your belongings. This can make a big difference when you file a claim.
Replacement Cost means you’ll be reimbursed for the cost of buying a brand-new item, not the depreciated value.
Actual Cash Value pays out based on the current market value of your belongings, factoring in depreciation—which usually means a smaller payout.
Example | Replacement Cost | Actual Cash Value |
5-year-old couch | $1,500 | $600 |
Q: Is tenant insurance required? A: Sometimes. Many landlords now require it as a lease condition.
Q: How much does it cost? A: Most policies range from $15 to $30 per month, less than a couple of coffees.
Q: Does it cover roommates? A: No, each tenant is often required by the terms of your lease to have their own policy.
Q: Can I cancel anytime? A: Yes, but be sure your new coverage is in place first.
APOLLO offers effortless tenant insurance designed to protect renters across Canada. Get your free quote in less than a minute and we’ll send your policy documents right to your inbox.
Originally published January 13, 2022, updated July 4, 2025
Back to APOLLO MagazineGet no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.
4.7 rating
Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.
4.7 rating
Just tell us your address, your name, email and phone number. And that's it. We'll give you a price in less than a minute.
You can choose to pay monthly or save money by paying for the entire year in one easy payment.
As soon as you complete your purchase, you'll find your proof of insurance and policy documents waiting for you in your inbox.
We’ve provided more than 1,000,000 quotes to Canadians just like you. Give it a try!