Tenant insurance, explained

Insurance might not always be the first thing you think about when it comes to your tenancy. However, it plays a key role in protecting you and your belongings.  

In this article, we’ll explain tenant insurance and why you need it. We will also go over your responsibility as a tenant and some of the most frequently asked questions we get about insurance. 

What is tenant insurance?

Tenant insurance is a type of insurance for people who rent their homes or apartments. This type of insurance is usually called contents insurance or renter’s insurance.   

Here’s how tenant insurance can help: 

• It covers items in your home. If your personal belongings, like your furniture, electronics, clothes, food, jewelry, or medication are damaged or stolen, tenant insurance can help you replace or repair them. 
• It protects you against liability. Accidents happen. Insurance can help cover legal costs and medical bills to another party for a claim you’re responsible for. Examples include a kitchen fire or if your pet bites someone.  
• It covers temporary living costs. If you can’t stay in your home because of a fire or major water damage, tenant insurance can cover the costs of hotel stays or a short-term rental. 

Types of coverage, explained. 

A general renter’s policy will offer two types of coverage: contents coverage and liability coverage.   

• Contents coverage helps cover the replacement cost of any personal belongings in the event of a fire, flood, or other accidental damage. 
• Liability coverage offers protection for any damage you cause to any part of your unit or building. You’re also covered for unintentional harm caused to your guests who visit the property. 

Difference between content coverage and liability coverage 

Contents coverage

• Focus: Protects your personal belongings. 
• Coverage: Specifically addresses the replacement or repair costs of your possessions. 
• When it's used: Applies when your personal belongings are damaged or stolen. 

Liability coverage 

• Focus: Protects you from financial responsibility for injuries or damage to others. 
• Coverage: Covers incidents involving other people.
• When it's used: Applies when you’re held legally responsible for an incident involving injury or property damage.

Why you need insurance 

Scenario 1 

Imagine your home suddenly floods due to a thunderstorm. Water comes in through the roof and windows, damaging your furniture and electronics. 

Can you cover the cost to replace your personal items like electronics, furniture, clothing, food, jewelry, or medication?  

Scenario 2 

A fire broke out in your building, damaging several units. Due to the extent of the damage, you can’t return for at least a month. You will need to find somewhere else to stay. 

How are you going to pay for a lengthy hotel stay or temporary rental?  

Scenario 3 

While you are away, someone broke into your unit and stole your mobility device. 

Can you afford to replace it? 

By the numbers 

• The average cost to replace everything in a one-bedroom unit is $20,000. 
• The average cost of a one-night stay at a hotel is $200. 
• The starting cost of a mobility device is $2,000. 

Insurance is your responsibility.  

As a Toronto Community Housing (TCHC) tenant, you are responsible, under your lease, for getting insurance for your unit and your belongings.