In Canada, there are two primary types of tenant insurance available. The first type, called all risks, covers all contents of the tenant’s dwelling, except those that are specifically excluded. The second option, named perils, covers only identified perils. The cost of tenant insurance varies based on several factors including the dwelling location, the amount of insurance needed, and the purchaser’s prior claims history. In addition, tenants can select whether they receive the actual cash value or the current replacement cost for any damaged items.
Tenants can choose to insure just the contents of their dwelling or select liability insurance to cover property damage or harm to others. Many landlords require residents to secure tenant insurance as a condition of the lease. The cost of either type of insurance is relatively inexpensive and provides affordable peace of mind.