Tenant insurance sits in a strange spot — it's cheap, most landlords require it, and most renters never make a claim. So is it worth it?
What tenant insurance actually covers
Three things: your belongings (theft, fire, water damage), liability (if someone is injured in your unit), and additional living expenses (if your unit becomes uninhabitable).
The liability part is the most important
If you accidentally cause a fire or flood that damages your unit and your neighbours', you could be personally liable for hundreds of thousands of dollars. A $25/month policy transfers that risk entirely.
The math on contents coverage
Add up what you own: laptop, phone, furniture, clothing, kitchen equipment, bike. Most people reach $15,000–$30,000 quickly. Replacing all of that out-of-pocket after a theft or fire would be devastating.
What to skip
Identity theft protection riders, earthquake coverage (unless you're in BC), and scheduled items coverage for jewelry you don't own. Keep it simple: contents + liability + additional living expenses. $20–$30/month.
The verdict
Yes, get tenant insurance. The liability coverage alone is worth $25/month. Use a broker or comparison site (Sonnet, Square One) to get accurate quotes.