Tenant insurance, also known as renters insurance, protects your personal belongings and liability coverage for accidents in your rented space. For some renters, tenant insurance may seem like an unnecessary expense, but landlords usually require that renters get insurance. With a typical standard policy costing $15 – $30 per month, tenant insurance offers a good amount of protection and peace of mind.

What is covered by tenant insurance?

Personal belongings

Tenant insurance covers your personal belongings in case they are damaged, stolen, or destroyed. This includes things like furniture, electronics, clothing, and jewelry. If your belongings are damaged by a covered peril, such as a fire or water damage, your insurance policy will pay to replace or repair them. The contents insurance portion of your policy follows you wherever you go. It also offers coverage for belongings left in your vehicle, such as your laptop or wallet—say, if they are stolen from the back seat.

Liability coverage

Tenant insurance provides liability coverage in case you accidentally cause damage to someone else’s property, or someone is injured while in your rented space. For example, if you accidentally leave the bathtub running and it floods your downstairs neighbour’s apartment, your tenant insurance policy would typically cover the damage.

Tenant insurance also covers medical payments if someone is injured while in your apartment. This can include things like a guest slipping and falling in your apartment or being bitten by your pet. It also covers legal fees if someone sues you for damages. Personal liability coverage will have stated limits so be sure to read your policy carefully.

Additional living expenses

If your rented space becomes uninhabitable due to a covered peril, such as a fire or water damage, your tenant insurance policy will cover additional living expenses. This includes things like hotel stays, meals, and other expenses that you would not have incurred if you were still able to live in your apartment.

What is NOT covered by standard tenant insurance?

Damages to the Building

As you would expect, damage to the building, such as the structure, pipes and roof, is generally the responsibility of your landlord and should be covered under their landlord insurance policy. However, renters can opt for enhanced coverage in their tenant insurance for damage to their personal belongings caused by water such as a sewer backup or overall water damage.

Home-based Businesses

If you operate a business—no matter how small—from your home office, you should consider small business insurance. Items related to running your business, such as a cell phone or laptop, are not covered by standard tenant insurance. Risks associated with your line of work, such as professional liability, are also excluded from tenant insurance but can be included in a small business policy. You may want to consider optional enhanced coverage for ID theft and Personal Cyber Security.

Damage from Pests or Rodents

Damage caused by rodents, mice, pests, or bed bugs is typically excluded from a standard policy. This includes the costs associated with eliminating an infestation.

It’s important to note that tenant insurance policies can vary in coverage and cost. At Bauld Insurance, we can help you find the right tenant insurance policy that fits your needs and budget. Don’t wait until it’s too late – protect your personal belongings and yourself with tenant insurance today. Contact us to learn more about our insurance options!