There are two primary components to Tenant insurance: Contents and Liability. Contents protection is coverage for your belongings against theft and damage due to fire, flood, etc. How much you choose for content coverage will affect how much your policy costs. The amount you choose really depends on the value of your belongings - one individual might need $5000 in coverage, while another may need $100,000. Liability protection covers you in circumstances where you could potentially be sued - for example, if a guest gets injured while visiting your home. Another aspect of liability included on some policies is coverage if you cause damage to the home - for example if you accidentally start a fire or flood. You'll want to double-check the extent of your liability coverage before purchasing the policy. In Ontario, $1 million is a pretty standard/common liability coverage amount, but it can certainly be less or more - again, this amount will affect your premium by a few $ each month. Keep in mind, like other forms of insurance, Tenant insurance is usually subject to a deductible when making a claim. Extras: Some Tenant Insurance policies have add-ons such as Identity Theft protection and Additional Living Expenses. The latter refers to reasonable expenses for meals and accommodations if you need to temporarily leave your home as a result of a flood/fire/etc.