BC Renters Insurance: What It Covers and When Landlords Can Require It

If you rent an apartment, basement suite, or house in Surrey, Langley, Delta, or White Rock, it is worth knowing what a tenant insurance policy does and does not do. This guide explains what BC and Insurance Bureau of Canada (IBC) sources say tenant policies cover, what they usually leave out, and what the Residential Tenancy Branch says about tenant insurance requirements in tenancy agreements.

This is general information, not legal or financial advice. Coverage varies by insurer and policy, so read your own wording and ask your broker or insurer about anything specific.

What tenant insurance covers in BC

The Province of BC says tenants (renters) are advised to purchase insurance to cover their needs. Tenant insurance can be purchased for three main things:

• Personal property: household contents such as furniture, clothing, household goods, and electronics.
• Personal liability: bodily injury or property damage you unintentionally cause to others. IBC says tenants may be liable for any damage they cause to the building or unintentional harm caused to others who live in or visit the property, and gives the example of a friend who slips, trips, or falls while visiting.
• Additional living expenses (ALE): expenses over and above your normal cost of living after an insured loss. IBC's example is a fire in your apartment, where you need somewhere to stay temporarily, such as a hotel. IBC notes that ALE coverage applies in certain circumstances and is subject to limits.

The Province also says tenants should insure, or be aware of policy limits for, high-value items such as jewellery, sports equipment, and musical instruments.

IBC describes several levels of home coverage. Comprehensive coverage covers the building and its contents for all risks, except for those specifically excluded. Basic or named perils coverage covers only those perils that are specifically stated. For a tenant policy, IBC says you can choose to insure your contents for "All risks" except those specifically excluded, or for "Named perils", which covers only perils that are specifically stated. Ask your insurer which one your policy uses.

Common exclusions and optional add-ons

IBC says coverage for overland flooding or sewer backup may be available as an optional add-on to a home policy, and that earthquake coverage may be purchased as additional coverage. The Province of BC says a tenant can also purchase insurance coverage for a home-based business, water damage, sewer backup, and earthquake, and that a tenant should discuss the cost of the earthquake deductible with an insurance broker.

IBC lists these among the excluded perils on a home insurance policy:

• Landslides, earthquakes, and other earth movements.
• Damage arising from the freezing of indoor plumbing, which IBC says is generally regarded as preventable.
• Damage by insects and rodents.
• Pollution.
• Losses due to war, terrorism, and nuclear risks.

What the landlord's or strata's insurance does not cover

The Province of BC's page on strata owner and tenant insurance says the strata corporation's insurance and the landlord's (strata owner's) insurance do not cover the needs of tenants, including household contents and expenses for living elsewhere if a strata lot or building needs to be remediated. It also says strata corporation insurance does not cover personal liability, household contents, or expenses for owners or tenants to live elsewhere after a loss. That page is written about strata buildings, so if you rent in a non-strata home, ask your landlord and your insurer what is and is not covered.

There is another risk renters can miss. The Province's repairs and maintenance page says tenants are financially responsible for any damages caused by themselves, their guests, or their pets, and that tenants are not responsible for normal wear and tear. IBC says the personal liability portion of tenant insurance is meant to cover any amount you would have to pay someone who successfully sues you, up to the limit chosen, plus the cost of defending you in a lawsuit.

Can a landlord in BC require tenant insurance?

The Residential Tenancy Branch (RTB) lists tenant's insurance requirements as one example of an additional term a tenancy agreement can include, alongside smoking restrictions and late rent payment fees. The RTB says additional terms are generally binding if the tenant agrees to them and if they do not contradict the Residential Tenancy Act. It also says an additional term that seems unclear or unfair might not be enforceable, and that tenancy agreements cannot include unfair or unreasonable (unconscionable) terms.

The Province's strata insurance page says that often a landlord will require a tenant to obtain tenant insurance and renew the policy annually. IBC says having personal liability insurance is typically a legal condition in a lease. Check your own tenancy agreement for the exact wording.

How much coverage do renters usually buy?

IBC says each insurance policy is priced, in part, according to the amount of coverage required to replace your personal belongings. Once you know how much coverage you need, IBC suggests shopping around and speaking with your insurance rep, and says that if you do not know how much coverage you need, your insurance rep can help guide you toward a policy with suitable coverage limits. If your landlord requires insurance, check your tenancy agreement for any coverage amount it names.

Roommates and students

IBC says that if you plan to rent with roommates, it is a good idea for each roommate to have their own tenant policy, because your tenant's policy will only cover the items you own. IBC also says that if you are under 21 years of age, you could be covered by your parents' or guardians' home insurance policy even while living away from home for the school year, and suggests asking them to review their policy.

Water damage and flooding

IBC says water damage usually includes damage from the sudden and accidental escape of water from an indoor plumbing, heating, sprinkler, or air conditioning system, and that coverage for overland flooding or sewer backup may be available as optional add-ons. The Province of BC lists water damage and sewer backup among the coverages a tenant can purchase. If you live in a basement suite, ask your insurer specifically what your policy does and does not cover for water. For related reading, see our guides on preparing for an atmospheric river in BC and what to do about a basement leak after heavy rain.

After a loss: what to do

1. Contact your insurance broker or insurer as soon as possible. The Province says that after a loss it is important for a tenant to immediately contact the insurance broker and, in a strata building, the strata council. Insurance providers may also have other requirements.
2. Tell your landlord. The Province says tenants should immediately report any water damage to their landlord.
3. Use your home inventory and any photos or videos of your belongings to document what you own.

Frequently Asked Questions

Official sources

• Province of BC — Strata owner and tenant insurance
• Province of BC — Tenancy agreements (Residential Tenancy Branch)
• Province of BC — Contact the Residential Tenancy Branch
• Province of BC — Repairs and maintenance during a tenancy
• Insurance Bureau of Canada — Types of home insurance coverage
• Insurance Bureau of Canada — Tenant's insurance overview

General information only, not professional advice. Rules and prices change, so check the official sources above before you act. Spotted something out of date? Tell us.