Renter's insurance 101: A guide for students

Moving into your first apartment or rental unit? Congrats! It’s a big step toward independence. But there’s one thing many students overlook: renter’s insurance.

You might be thinking, “My landlord has insurance, so I’m covered.” But unfortunately, that’s a common misconception.

Your landlord’s insurance policy protects the building only — not your belongings and not you. In fact, many landlords can legally require renter’s insurance as part of your lease agreement and they’re allowed to request for proof.

So what exactly is renter’s insurance, why does it matter and how do you get it? Let’s break it down.

What is renter's insurance?

Renter’s insurance (also called tenant insurance) is a policy that protects you and your belongings while living in a rental unit. Most policies include three main types of coverage:

1. Personal property coverage

This covers the current value of your belongings like your laptop, phone, clothes, furniture and textbooks if they’re damaged or stolen due to things like a fire, theft, vandalism or certain types of water damage.

2. Liability coverage

This is one of the most important and often overlooked parts of renter’s insurance. Liability means legal responsibility. If someone gets injured in your unit or you accidentally cause damage in the building, you could be held responsible for the repair costs, medical bills or legal fees if you're being sued. Most landlords require $1 million in liability coverage, which is very standard.

3. Additional living expenses

If a covered event like a fire makes your place unlivable, renter’s insurance may cover temporary housing such as a hotel or short-term rental, and sometimes additional living costs while repairs are being made. Some other optional add-ons that you can add to your coverage include identity theft protection and additional coverage for high-value items (e.g., jewelry, electronics, etc.).

Living in UCalgary residence?

If you’re living in the on-campus residence at the University of Calgary, check out the website for details about insurance coverage. To be safe, always confirm what’s currently provided and you can decide whether you'll need to purchase additional renter’s insurance.

Why it matters (even if your landlord may not ask for it)

Your landlord’s insurance does not cover your belongings or protect you if you cause extensive damage. So, without renter’s insurance, you could be personally responsible for huge bills or even face lawsuits.

Some very real possible real-life scenarios:

• Kitchen fire: You accidentally start a fire while cooking. Smoke damages your unit and the one next door. Without insurance, you could owe thousands in repairs.
• Stolen laptop: Your apartment is broken into and your laptop and headphones are stolen. Renter’s insurance can reimburse you for the cost.
• Burst pipe: A pipe floods your unit, ruining your clothes and furniture. The landlord fixes the pipe — but your belongings aren’t covered unless you have insurance.
• Temporary housing: A fire forces you out for two months. Without insurance, you pay for a hotel yourself. With coverage, some or all of those costs may be covered.

How much does it cost?

The good news: it’s affordable. In Alberta, renter’s insurance typically costs $15–$30 per month and student-focused policies can be even cheaper. 

Your cost (called a premium) depends on your location, credit score, desired coverage amount and optional add-ons. Most policies are paid monthly, though some insurers allow or require yearly payment. 

How to get renter's insurance

1. Shop around: Compare prices online from Canadian banks (e.g., RBC, Scotiabank, TD, ATB), insurance providers (e.g., AMA, Intact, Square One, Marsh) or insurance brokers (e.g., BrokerLink).
2. Search under “Home Insurance”: Tenant insurance is often listed under the “home insurance” online. From there, you will usually select tenant or renter insurance later in the process.
3. Choose your coverage: Make an inventory of your belongings and estimate their value. Most policies use replacement cost, meaning what it would cost to buy the item new today. Then, select a liability limit ($1 million is a typical amount).
4. Provide your rental address: Policies are tied to a specific unit and address.
5. Purchase & get proof: After buying, you’ll receive a PDF or certificate — this is what you show your landlord if required.
6. Ask about bundling: If you already have car insurance, ask about bundling tenant and auto insurance for possible discounts.

The bottom line

A damage deposit and renter’s insurance serve similar but different purposes. 

• A damage deposit, otherwise known as a security deposit, is money held by the landlord to cover unpaid rent or damage beyond normal wear and tear when you move out (e.g., holes in walls, broken fixtures, scratched floors). If everything is fine, you'll get it back in full.
• On the other hand, renter’s insurance covers the current value of your personal belongings and provides liability coverage during your tenancy. It can help cover losses from events like fire or theft, as well as costs you may be legally responsible for if someone is injured or property is damaged due to your actions. 

Coverage varies by policy and some types of water damage may require additional coverage. In Alberta, a damage deposit does not cap your responsibility for damages and landlords can require payment for costs beyond the deposit. 

Whether it’s a stolen laptop, a cooking mishap or an unexpected disaster, having coverage means you can focus on your studies — not paying out of pocket for costly repairs or replacements.