Do I Need Tenant Insurance?

Short answer: You probably should have it, even if it’s not legally required.

In most of Canada, tenant insurance (also called renter’s insurance) isn’t required by law, but:

• Many landlords put it in the lease as a condition of renting

• Even if they don’t, it can protect you from big, unexpected costs if something goes wrong

It’s mainly there to cover your stuff, your liability (if you accidentally damage the building or someone gets hurt in your unit), and sometimes temporary living costs if your place becomes unlivable after a covered event.

How KOHO Everything Can Help You

Tenant insurance is easier to keep up with when your day-to-day money is organized and earning something back.

With the KOHO Everything plan, you get:

• Build credit history and earn 0.25% on reporting rent

• KOHO members get one of the most competitive prices in Canada, with standard coverage from $22/month

• Grow your savings with 3.5% interest, one of the highest rates in Canada

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• There are no foreign exchange fees, so you save on international purchases and travel

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

What Tenant Insurance Usually Covers

Policies differ, but most tenant insurance includes:

• Contents coverage
  Protects your belongings (furniture, clothes, electronics, etc.) against things like fire, theft, and certain types of water damage, up to your policy limit.

• Liability coverage
  Protects you if you accidentally damage the unit (e.g., kitchen fire) or someone gets injured in your place and you’re found responsible.

• Additional living expenses
  Helps pay for temporary housing, food, and other costs if you can’t stay in your unit after a covered loss (e.g., major fire in the building).

Without tenant insurance, replacing everything or dealing with a big liability claim would come straight out of your pocket.

When Tenant Insurance is Especially Important

You’ll really want tenant insurance if:

• Your landlord or property manager requires proof of it

• You’d struggle to replace your furniture, laptop, and clothes all at once

• You live in a building where water damage, fire, or theft would be a serious financial setback

• You have people over often and want protection in case someone is injured in your place

For a relatively low monthly cost, it’s often one of the best “sleep-better-at-night” tools you can have as a renter.