How Does Tenant Insurance Work? – Forbes Advisor Canada

Tenant insurance covers your personal belongings in the event of theft, fire and other problems listed in your policy.

It also includes tenant liability insurance, or personal liability coverage, which offers financial protection if you cause injury to someone else or accidentally damage someone else’s property.

Another perk of tenant insurance is that it can pay for extra costs if you can’t live at home due to damage, such as fire damage. Here’s a closer look.

Contents Insurance or Personal Property Coverage

Tenant insurance covers your belongings, including furniture, clothing, jewellery, electronics and even knick-knacks, if they are stolen or damaged by a problem listed in your policy. Tenants insurance will extend to personal belongings in your vehicle, such as items stolen from your car or while you’re on vacation.

Your personal property is only covered up to your policy limit, and be aware of coverage limits for specific items, such as:

• Money, including gift cards
• Data, including music and video files
• Animals, birds or fish
• Wine and spirits
• Computer software

Check your own tenant insurance policy to find its special limits. If you have expensive jewellery or art, you can schedule personal property separately, which lets you fully cover items outside of the renters policy limit.

Liability Coverage

The liability coverage in a tenant insurance policy, also known as legal liability coverage, provides financial protection if you are sued for causing injury or property damage to others.

This could include:

• You accidentally start a fire that damages another apartment.
• A guest slips and falls in your unit.
• Your dog bites someone, even at the park.
• Your bathtub overflows and damages the unit below you.

Liability insurance also pays for your legal defence and can cover any legal judgments if the court finds you were negligent.

Additional Living Expenses Coverage

If your rental home becomes uninhabitable due to a problem covered by your tenant insurance, additional living expenses coverage will pay for the extra cost to live somewhere else until you can return.

Additional living expenses coverage can include hotel stays, restaurant meals, pet boarding fees and other expenses that result from being displaced, up to the limits of your policy.