Why You Need Renter’s and Tenant’s Insurance

Feb 8, 2021

Fact – You may not own your house or condo, but you still need insurance coverage for you and your family. Here’s a quick summary of how a tenant policy works and how it can help.  

These package insurance policies are for those who rent their home space in a house, basement suite or apartment, and cover a variety of losses. These insurance policies run continuously until you or the insurer cancel the policy. Here is what is available:

Renting and Moving


Whatever you own in your rented space and on-site storage lockers. All your possessions could be replaced with new, modern equivalent items, this is called “new for old” or “replacement cost.” How much do you need to buy everything brand new? In your policy, contents are described by these categories:

  • Unlimited “stuff” that you own – replaced up to the limits that you choose;
  • Limited, specified items like jewellery or bikes, that you can cover more if you need;
  • Things not covered – mostly things designed for other policies like business, autos, etc.
  • Building damage due to theft or burglary (this will please your landlord!)


Additional Living Expenses 

Concerning things that happen like a building fire or extensive water damage, preventing you from living in your home for a short time. While the landlord is still entitled to any rent under a lease, you may need to live somewhere for a short term while until the unit is repaired and fit to move back in. Insurance will pay for extra rent and some other extraordinary expenses.

Personal Liability World-Wide 

We don’t think we will ever be sued, but things happen, and people get sued all the time. Even small things that might not go to court might be settled under the Voluntary clauses, directly, or at the option of the insurance company for larger problems. This applies in or outside your residence, but also when you travel, camp, or even cause a car accident while on your bicycle, anywhere in the world. Of course, there is no coverage for such liability incidents that are auto, business, or professional related, you need to have these activities covered separately. An extension to coverage includes tenant’s legal liability to your landlord, and will even respond to defence costs if the claim against you is thrown out.

Optional Add-Ons “Endorsements” 

You can add coverage for Water Damage, Earthquake, small Boats, Home Based Business, or Airbnb. You can also add on special items that are limited under contents if you have an excess of that limit.

Deductible – 

Keep in mind this is catastrophe coverage. Small losses that you can handle yourself should not be claimed. $1000 is standard for first-time tenants, $500 after first renewal, but discounts are available for voluntary higher limits.

What Does All That Cost?

A basic policy can cost a little more than a dollar a day.  Your price will vary depending on what you need to buy everything brand new. It will also be influenced by the type of building you are in – basement suite, whole house, townhouse, or concrete high-rise, and the area that you live in.  After no claims for 3 years, you will get a “claims free” discount.  Discounts are also available for situations attractive to the insurer such as your age, long-term loyalty or alarm systems.


Make it more affordable?  Consider monthly payment plans to spread out the payments.


What if you end up moving or buying a home?  Your insurance broker can transfer coverage to your new home, easy enough. (This is where your claims-free discount will really help.)

While this is a brief snapshot of a Tenant policy, there are many other little extensions or exclusions in your policy. Buy online now here or contact us at info@nexusinsurancebrokers.com  for any help with your policy.

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