Tenant insurance

Tenant insurance, also known as renters insurance, is an insurance policy for someone who rents a house or an apartment. It covers their personal belongings in case of theft, fire or water damage. It also provides coverage if your negligence causes harm or damage to other's property. The building itself is covered by the landlord’s insurance policy, not by tenant insurance.

While 97% of home owners had home insurance in 2008, according to Statistics Canada, only 42% of renters had tenant insurance. You may think that your possessions don't amount to much, but if there is a fire, how much would it cost to replace everything you currently own?

Students who are temporarily living away from home may be covered under their parent's home insurance so might not need tenant insurance. Your insurance agent should be able to confirm coverage in this case.

Liability
Liability coverage includes up to $1 million (or more) if someone successfully sues you for damage to the building or for causing unintentional harm to others who live in or visit the property.

Contents
Two types of coverage are available for the contents of the house or apartment you are renting: all risks and named perils. With all risks, everything if covered except if specifically excluded in the policy. With named perils (or specified perils), only perils that are specifically stated are covered.

Buying tenant insurance
Tenant insurance should be comparatively inexpensive (relative to home insurance). In 2008, the average cost of tenant insurance in Canada was about $300 per year, less than half of what home owners were paying.

Tenant insurance is sold directly by property and casualty (P&C) companies or through insurance brokers. Get two or three quotes, making sure you are comparing very similar policies. There may be a rebate if you also insure your car with the same insurance company.

How to be ready should you need to make a claim
Film your rented dwelling to show all your possessions. Or make a detailed list. Keep the film or list somewhere else (not in your rented dwelling), or use a fireproof/waterproof safe. Should there be a fire or other catastrophe, this will make the insurance claim process easier.