Tenant insurance in Canada: what it covers, what it does not and how to pick a policy
Quick summary
Your landlord's insurance does not cover your belongings. Tenant insurance can pay for your things, for damage you accidentally cause to others, and for extra living costs if a covered loss makes your home unlivable. Read the policy, and set your budget in therent affordability calculator.
Checked November 2, 2026. Main source: Insurance Bureau of Canada: Tenant insurance. See all 4 sources.
What tenant insurance covers
- Your belongings: furniture, clothing, electronics and more, at home and away from home. The Insurance Bureau of Canada says you can pick all risks coverage (everything except what is listed as excluded) or named perils coverage (only the causes listed).
- Liability: what you would owe if someone successfully sues you for injury or property damage you caused, up to your limit. It also covers the cost of defending you. The federal agency says this includes accidental damage you cause to the building and injuries to visitors.
- Additional living expenses: temporary housing and extra costs if a covered loss makes your home unlivable, within a limit.
- Items stolen from your vehicle, according to the federal agency.
Sources: Insurance Bureau of Canada, Tenant insurance; Financial Consumer Agency of Canada, Home insurance (last modified October 16, 2025). Checked November 2, 2026.
What it often does not cover
- Floods and earthquakes. These usually need extra coverage.
- Gradual wear, pests and pollution, according to the Insurance Bureau of Canada.
- Freezing damage if you are away for more than 4 days in cold weather without taking steps such as draining the plumbing or arranging regular checks.
- Injuries to you or people in your household. Liability covers other people.
Sources: Insurance Bureau of Canada, Tenant insurance; Financial Consumer Agency of Canada, Home insurance. Checked November 2, 2026. Your policy lists the exact exclusions, so read it before you sign.
Replacement value or actual cash value?
Replacement value pays what it costs to buy a similar new item. Actual cash value pays the original price minus depreciation, based on age and condition. The federal agency gives this example: for a $2,000 computer bought 5 years earlier, replacement value covers a new computer of similar quality, while actual cash value pays only its reduced value.
Ask which one your policy uses. It can change a claim by a lot.
Source: Financial Consumer Agency of Canada, Home insurance. Checked November 2, 2026.
The deductible
A deductible is the part of a claim you pay before the insurer pays the rest. You always pay it when you claim. The amount you pick is one of the things that affects your premium (the price you pay for the policy). Choose a deductible you could pay from savings, and ask your insurer how different amounts change your price.
Source: Financial Consumer Agency of Canada, Home insurance. Checked November 2, 2026.
How much coverage do you need? Make a list
The federal agency says you should have enough insurance to cover the cost of replacing everything you own. It suggests making a list of your belongings with replacement costs and keeping photos and receipts for major items.
Here is an example list. The values are made up to show the method. Use your own.
| Room | Example items | Example replacement cost |
|---|---|---|
| Bedroom | Bed and mattress, dresser, clothing, bedding | $3,500 |
| Living room | Couch, TV, console, shelves | $3,000 |
| Kitchen | Small appliances, dishes, cookware | $1,200 |
| Office | Laptop, desk, chair, phone | $2,500 |
| Total | $10,200 |
Example only, not market data. Source for the method: Financial Consumer Agency of Canada, Home insurance. Checked November 2, 2026.
How to choose a policy
- Get quotes from more than one insurer. Premiums differ. You may get a discount if you also buy car insurance from the same company.
- Check your lease. Many leases ask tenants to carry liability insurance, according to the Insurance Bureau of Canada.
- Tell the insurer if you share your home or rent out a room.
- Ask what your liability limit is and whether you can raise it.
- Ask if additional living expenses are included and what the limit is.
- Read the policy before you sign and ask an agent or broker about anything unclear.
Sources: Insurance Bureau of Canada; Financial Consumer Agency of Canada. We do not list a price because the only official figure we found is from 2017. Get current quotes. Checked November 2, 2026.
Where to go next
Questions people ask
Does my landlord's insurance cover my belongings?
No. The Insurance Bureau of Canada says the building owner's insurance does not cover a tenant's property.
What is liability coverage for renters?
It pays, up to your limit, what you would owe if you are found responsible for injuring someone or damaging their property. It also covers the cost of defending you.
What is the difference between replacement value and actual cash value?
Replacement value pays what a similar new item costs. Actual cash value pays the original price minus depreciation.
Is flood damage covered?
Floods and earthquakes are usually not covered and may need extra coverage. Check your policy.
How much does tenant insurance cost?
It depends on where you live, what you own, your deductible and your insurer. We do not list a price. Get quotes from more than one company.
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