What is Renters Insurance and What Does It Cover?

For Rent sign outside a house

Probably one of the biggest myths surrounding renters insurance is that people do not need it because their landlords will have insurance coverage. What many people do not realize is that a landlord’s insurance will only cover damages to the landlord’s property by fire, hailstorm, windstorm, malicious damage etc. Your landlord’s insurance does not cover any of your personal belongings that you’ve worked so hard for.

Below, we will take a look at what exactly renters insurance is and what it covers.

#1 Protects Your Belongings

Renters insurance will cover your personal items like, clothing, furniture, electronics equipment, if they are stolen or damaged or destroyed by an insured peril. There are two types of policies available namely Standard Policy or a Comprehensive Policy.

Standard tenant insurance will cover damage to your personal property if the damage is caused by what is called in the industry as Named Perils. You are insured if the damage is caused by the specified perils, subject to conditions, exclusions, limitation etc. as stated in the policy wordings.

Comprehensive policy on the other hand covers against “All-Risks”, subject to conditions, exclusions, limitation etc. as stated in the policy wordings.

Both types of policies all provides coverage for liability and additional living expense.

#2 Coverage for Outside Your Home

Another main benefit of tenant insurance is that it also protects your belongings when you are away from your home i.e. when travelling or temporarily at another location for a limited period of time. For example, if your smartphone was stolen from your gym locker or your laptop out of your car, these items would be covered. Without tenant insurance, you would need to replace these items on your own, which can be quite costly.

#3 Replacement Cost Coverage

Have you ever considered how much it would cost to replace the contents of your rented dwelling, apartment or condo if it was damaged in a fire or water.  If you Replacement Cost Coverage on the renters policy, all your damaged items will be replaced without deduction for any depreciation – in another words new for old.


There are a number of endorsements which can be added to your renters insurance policy such as the following:

Sewer Backup – Covers water damage from municipal sewer system or septic tank or sump pump failure.

Overland Water – Covers heavy rain, overflow of a river or lake or rapid snow melting.

Finding the Best Rate

At Bow Valley Insurance, we will do the shopping for you and find the lowest priced renters insurance policy with the best coverage. We will also find any discounts that may lower your rate such as being a student, belonging to a professional organization or bundling policies.

To start saving on your renters insurance today, contact us for a free no-obligation renters insurance quote.