Tenant Insurance 101: What Renters in Calgary & Edmonton Need to Know
Written By Power Properties
If you're renting an apartment, condo, or house in Calgary or Edmonton, you might think your landlord's insurance has you covered. Unfortunately, that’s one of the biggest misconceptions renters have. Your landlord’s policy protects the building, not your stuff. And it definitely won’t help if someone gets hurt in your unit and decides to sue you.
Here’s what you actually need to know about tenant insurance, why it matters, and how to avoid some common mistakes.
What Is Tenant Insurance?
Tenant insurance (or renters insurance) is a policy designed specifically for people who rent their homes. It’s your safety net when the unexpected happens, whether that’s a fire, a break-in, or a burst pipe.
Think of it this way: if you could flip your rental unit upside down and shake it, everything that falls out is your responsibility. Furniture, electronics, clothes, kitchen gear, all of it.
Is Tenant Insurance Required?
It’s not required by law in Alberta, but most landlords now include it as a condition of the lease. Even if yours doesn’t, it’s still a smart financial decision. Replacing everything out of pocket, covering someone’s medical bills, or paying for a hotel if your unit floods adds up fast.
What Does Tenant Insurance Cover?
Tenant insurance usually includes three key areas of protection:
Personal Property
Covers your belongings if they’re damaged, destroyed, or stolen due to things like fire, theft, or water damage. You’ll choose between actual cash value (which factors in depreciation) or replacement cost (which pays what it takes to replace the item with a new one).
Liability Protection
Covers you if someone gets injured in your unit or if you accidentally cause damage to someone else’s property—like if your tub overflows and floods the apartment below. It also helps with legal costs if you get sued. Most policies offer $1 to $2 million in liability coverage.
Additional Living Expenses (ALE)
If something happens and you can’t live in your rental while it’s being repaired, ALE covers things like hotel stays, restaurant meals, and temporary transportation.
What’s Not Covered
Standard policies won’t cover everything. Some common exclusions include:
Damage from floods or sewer backups (unless you add optional coverage)
Your roommate’s belongings (they’ll need their own policy)
Business equipment or inventory if you work from home
Cars, motorcycles, or other vehicles
Damage caused by landlord negligence (like a leaking roof they ignored)
How Much Does It Cost?
Tenant insurance is surprisingly affordable, usually between $20 and $30 per month in Alberta, depending on your coverage and deductible. That’s about the same as a couple of takeout coffees a week.
Costs vary based on things like where you live, how much coverage you choose, whether you smoke, and if you bundle it with auto insurance.
Common Mistakes Renters Make
Underestimating how much their stuff is worth
Most people don’t realize how quickly things add up. Even in a small one-bedroom apartment, it’s easy to hit $20,000 to $40,000 in belongings when you factor in clothes, furniture, kitchen items, and tech.
Skipping liability coverage
Some renters think they don’t need liability protection because they’re careful or don’t have guests over often. But accidents happen—pipes burst, people trip, and pets bite. If someone gets hurt, you could be on the hook for medical bills and legal fees.
Assuming a roommate’s policy covers them
It doesn’t. Everyone in the unit needs their own policy. Your stuff and your liability are not covered by your roommate’s insurance, even if you’re both on the lease.
Ignoring optional add-ons
If you live in a basement suite or an area that’s prone to flooding, adding sewer backup or overland flood protection could save you thousands down the line. Optional coverage like identity theft protection is also worth considering depending on your lifestyle.
Not updating the policy after a move or major purchase
Got a new bike, laptop, or piece of furniture? Moved into a new unit? Your policy should reflect that. It’s worth doing a quick review once a year or whenever your situation changes.
Why It Matters
Tenant insurance isn’t just about protecting your stuff—it’s about protecting your future. Whether it’s replacing your belongings, paying for temporary housing, or helping with legal costs, tenant insurance is your backup plan when life doesn’t go as planned.
And for under a dollar a day, it’s one of the best deals you’ll find.
Final Thoughts
Tenant insurance gives you peace of mind, financial protection, and one less thing to worry about. If you’re currently renting—or about to sign a lease—don’t wait until something goes wrong to start thinking about it.
Take ten minutes, get a few quotes, and choose the coverage that makes sense for your situation. You’ll be glad you did.
Contact us today for a free consultation and discover why we're Canada's trusted choice for professional property management.
About Power Properties Ltd.
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Edmonton, Lethbridge and Medicine Hat for over 45 years. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
