A tipped candle scorches the hardwood floor, a burst pipe drenches the carpet, or an errant hockey shot shatters a living-room window. In each case, the landlord’s property is damaged, yet you, the tenant, caused or contributed to the loss. Who pays? 

Tenant insurance, also called renter’s insurance, often steps in, but only under the right conditions. This guide explains how coverage works, what gaps to watch for, and why partnering with an experienced brokerage such as Marathon Insurance Group can safeguard both you and your landlord.

Related Article: What Is Tenant Insurance?

Understanding Tenant Insurance Basics

Before diving into liability, clarify what a renter’s policy does. Tenant insurance has three pillars:

1. Personal property protection for your own furniture, electronics, and clothes.
   
   
2. Additional living expenses if fire or flood forces you to move out temporarily.
   
   
3. Personal liability coverage for bodily injury or property damage you cause to others, including your landlord.
   
   

Liability is the section that applies when you damage the building, fixtures, or shared areas. Without it, you pay repair bills out of pocket, and a serious loss can easily climb into the tens of thousands of dollars.

Related Article: How Much Is Tenant Insurance?

What Counts as Damage to the Landlord’s Property?

Landlord property means anything the owner supplied or installed, such as:

• Walls, ceilings, floors, built-in cabinetry, countertops, and appliances
  
  
• Electrical and plumbing systems, light fixtures, and windows
  
  
• Exterior elements like balconies, doors, siding, and roofing materials
  
  
• Common areas in multi-unit buildings, including hallways and lobbies
  
  

If your actions, or inactions, harm any of these, liability coverage becomes critical.

Damage Scenarios Usually Covered

Tenant policies sold in Ontario typically handle a range of everyday mishaps. Here are four common examples and how liability coverage responds:

• Kitchen grease fire chars the cupboards. Because the blaze started through tenant negligence (leaving hot oil unattended), the policy pays for demolition and replacement of the damaged cabinets (after your deductible).
  
  
• Overflowing bathtub soaks the ceiling below. Forgetting the tap counts as an accident under most forms. Your insurer reimburses the landlord for drywall and paint repairs in your unit and compensates the neighbour below for water damage.
  
  
• Guest trips on a loose rug and breaks the landlord’s glass coffee table. Tenants are responsible for visitor safety. Liability coverage refunds the landlord for a table of similar quality and style, sparing you a hefty out-of-pocket bill.
  
  
• Family dog chews the baseboards. If your policy doesn’t exclude pet damage, the insurer covers labour and materials to replace or refinish the gnawed trim, another good reason to double-check the fine print on animal exclusions.
  
  

Because wording varies by insurer, always confirm how the policy defines “accident,” “negligence,” and “pet damage” before banking on a payout.

Situations Often Excluded

Coverage is broad but not limitless. Expect the insurer to deny claims when damage results from:

• Intentional acts or illegal activity (e.g., punching holes in walls during a dispute)
  
  
• Gradual wear and tear, such as mould growth, slow leaks ignored for weeks, or sun-faded paint
  
  
• Business operations done from home if you have no commercial rider
  
  
• Certain breeds or exotic pets if specifically excluded in the liability wording
  
  

Review exclusions annually, especially if your lifestyle changes — bringing home a new pet, launching an online business, or starting a renovation with the landlord’s consent.

How Liability Limits and Deductibles Work

Liability coverage appears as a flat limit, commonly $1 million or $2 million. The insurer pays covered damages up to that ceiling, including legal fees if the landlord sues. 

Your deductible applies to property damage claims but not to legal defence costs. A higher limit usually raises premiums by only a few dollars per month, yet provides a big safety cushion, so many brokers recommend at least $2 million.

Steps to Take When Damage Occurs

A calm, timely response increases the chance of a smooth claim:

1. Stop the hazard. Shut off water or electricity, smother flames, or confine a pet.
   
   
2. Document everything. Use your phone to photograph the scene from wide and close angles.
   
   
3. Notify the landlord promptly in writing, even for minor issues.
   
   
4. Contact your insurer or broker. Marathon clients can call 24/7 or file through the mobile app.
   
   
5. Keep receipts for emergency purchases such as fans, tarps, or hotel stays if the unit is unlivable.
   
   
6. Cooperate with the adjuster, providing statements and access for inspections.
   
   

Fast action shows good faith and prevents extra damage that might fall outside coverage.

Choosing the Right Tenant Insurance Policy

Not all renter policies are created equal. Consider the following when comparing quotes:

• Liability limit: Aim for $2 million if you live in a high-value building or host frequent guests.
  
  
• Water coverage add-ons: Sewer backup and overland water riders protect against common Canadian hazards.
  
  
• Contents replacement cost: Ensure the policy pays to replace items new for old rather than their depreciated value.
  
  
• Pet-related language: Confirm your dog, cat, or caged animal is not excluded.
  
  
• All-risk or named-peril approach: All-risk offers broader protection, covering everything not specifically excluded.
  
  

A broker like us, Marathon Insurance, compares multiple insurers, explains fine print, and tailors limits to your budget.

Common Misconceptions Cleared Up

“My landlord’s insurance covers everything.” Landlord policies protect the building structure and the owner’s liability, not the damage you cause or your personal property.

“I only rent a bedroom, so I don’t need insurance.” Liability follows you anywhere inside the building. A candle left unattended in one room can destroy the entire house.

“Tenant insurance is expensive.” Basic plans start around one coffee a week. Skipping coverage leaves you exposed to bills far larger than any premium.

“If a guest breaks something, they pay.” The tenant is responsible for guests, so damage a friend causes still triggers your policy.

Related Article: Can a Landlord Require Tenant Insurance

How Tenant Insurance Benefits Your Landlord

Landlords encourage or even require tenants to carry insurance because it:

• Accelerates repairs: the insurer pays promptly, reducing vacancy time
  
  
• Lowers disputes: claims adjusters, not personal savings, fund fixes
  
  
• Demonstrates tenant responsibility: proof of insurance can strengthen lease applications
  
  
• May reduce landlord premiums: Insurers favour buildings where every unit has liability coverage
  
  

A win-win arrangement fosters better landlord-tenant relationships.

Why Work with Marathon Insurance Group?

Marathon Insurance has matched Ontarians with tailored coverage for over 30 years. Choosing Marathon for renter insurance means:

• Access to top insurers: Multiple quotes find competitive premiums without sacrificing protection.
  
  
• Straightforward advice: Licensed brokers translate policy jargon into everyday language, so you know exactly what is covered.
  
  
• Fast digital service: The mobile app lets you adjust limits, download documents, and start claims anywhere, any time.
  
  
• 24/7 support: Real people answer calls after hours, guiding you through urgent situations.
  
  
• Claims advocacy: Marathon liaises with insurers on your behalf, pushing for fair settlements and quick turnaround.
  
  

The goal is simple: protect what matters, keep surprises off your balance sheet, and make insurance one less thing to worry about.

Related Article: What Are the Benefits of Using an Insurance Broker in Toronto?

Ready to Safeguard Your Rental Life?

Remove doubt by pairing a solid tenant policy with caution and clear communication. Choose adequate liability limits, know your exclusions, and act quickly when accidents happen. 

Contact Marathon Insurance Group today for a no-pressure quote and personalized guidance. With the right coverage in place, you can relax in your rental knowing both your belongings and your landlord’s property are protected.