July 8, 2021
What You Need to Know About Renters Insurance Policies

Many people prefer to rent properties as they can be the best housing option for some. But as a tenant, how do you protect your property from getting damaged? The answer is simple: renters insurance.

Renters insurance can protect tenants against property damage from fire, theft, and other unfortunate circumstances. In the event of a disaster, renters insurance can save you money so that you will have one less thing to worry about.

But before you go shopping for renters insurance, there are some things you need to know. Here’s a simple guide on renters insurance to help you in your decision-making.

Is Renters Insurance Required?

Renters insurance isn’t required by law. However, some landlords may require you to get renters insurance before they let you rent out their property. Landlords have the legal right to reject any applicant who refuses to purchase renters insurance if the landlord requires it.

If you’re renting a property, ask your landlord if they require you to get renters insurance and their policy on this matter. Some landlords might specify the extent of liability coverage they expect you to have. So, definitely consider this when purchasing renters insurance.

Landlords often prefer their tenants to have renters insurance as this reduces their liability. With renters insurance, tenants are less likely to try to collect damages from their landlords. Renters insurance can also legally protect landlords as they are less likely to be sued in the event of a disaster.

If your landlord requires renters insurance, they might request a copy of your policy as proof. However, some landlords even require their tenants to list them as an additional interest so that the insurance company can notify them if your policy has lapsed.

What Does Renters Insurance Cover?

Every policy is different, but most insurance policies will either replace your damaged property or provide cash in the event of a disaster. For an actual cash value agreement, the renters insurance will cover the property cost at the time of purchase minus depreciation. On the other hand, if you have a replacement value agreement, the insurance will cover the cost of purchasing a similar item.

To illustrate the difference between the two, let’s take a three-year-old television as an example. If the television was stolen or damaged, the insurance company would offer money equivalent to the cost of a three-year-old television under the actual cash value agreement. But for the replacement value agreement, the insurance will cover the cost of a new television even if your former one is three years old.

Different policies also have different coverages in terms of the cause of damage. For example, most policies would cover fires, indoor flooding, and theft. But not every policy will cover natural disasters such as earthquakes and tornados. So, be sure to check the incidents covered in the different policies before choosing one.

How to File a Claim

To file an insurance claim, you have to report the damage or theft to your insurance provider. Some policies may follow a specific time frame for filing claims, so it’s best to contact your insurance company as soon as possible.

You’ll also have to evaluate the damage and report this to the insurance company. You’ll need to take pictures and provide other documentation for this. In cases of theft, it’s best to have already collected the appropriate documentation and cost estimates prior to the incident.


Although not legally required, it can be worth purchasing renters insurance so you can protect your property from damage. Ask your landlord if they require renters insurance and what coverage they expect you to have. When choosing an insurance policy, consider the incidents covered and the type of value agreement. Lastly, make sure you prepare the necessary documentation for your property so you can easily file a claim when an incident happens.

If you want to learn more about rental property management, you can count on Fahel & Co to help you out. We are a property management firm in Ottawa that provides the highest quality of care to both tenants and landlords. Request a call now!