Tenants Insurance Definitions

Tenants Insurance policies have many particular terms used throughout the policy in the Tenants Insurance Definitions sections. Here are some key ones that sometimes need a little translation from the insurance language to common English.  Plus this will help you know how it can pertain to your policy.

Insurance Definitions

Item Valuation 

Actual Insurance Repayment Amount Definition:

Actual Cash Value means Replacement Cost (as defined), minus a deduction for depreciation and obsolescence, which takes into consideration the condition of the property immediately before the loss, its average life expectancy, and its resale value.

Replacement Cost means the actual cost of repairing, replacing, or rebuilding, whichever is less, with like kind and quality.

What this means: 

Your insurance company replaces your damaged goods in 1 of 2 ways. Actual Cash Value includes an amount for depreciation. Replacement Cost will do just that. It will repair, replace or rebuild, whichever is less.

Injury & Damage as it pertains to a lawsuit

Bodily injury and Property Damage Definition:

Bodily Injury – damage to a physical condition, including pain, illness, or resulting in death.

Property Damage – physical damage to, destruction of, or loss of use of the tangible property.

Government Involvement

Civil Authority Definition:

Civil Authority means any person acting with authority under Federal, Provincial or Territorial legislation concerning the protection of persons and property in the event of an emergency.

What this means:

Sometimes there are EXCLUDED coverages in your policy due to government orders such as a pandemic. 


Water Backup Definition:

Water Backup means the backing up or escaping freshwater or wastewater from a sewer, storm drain, drain, sump, or septic tank. 

What this means:

Often, Water Backup is excluded from the MAIN body of the insurance policy, and then you have to pay extra to purchase coverages, and it may have a different deductible. However, other water claims like pipes bursting or floods are included and/excluded at various parts of your policy.

A great list of what is and IS NOT covered exclusively with your Tenants Insurance policy:

Included: Personal Property means tangible, moveable property that you own, including all household appliances. For this Policy (as defined),

Excluded: Bicycles and Sporting Equipment; Business Property; Collectibles; Detached Structures; Fences and Landscaping; Fine Arts; Jewellery and Watches; and watercraft. Personal Property does not include the following types of property (each as defined) for which you can purchase additional insurance.

Who are the people that this Tenants Insurance policy protects against? 

Another Great list of who can be covered:

  • You and your spouse or partner while living in the same household;
  •  the relatives of you or your partner; while living in the same household;
  • any person under twenty-one (21) years of age in your care;
  • any domestic employees;
  • the parents of you or your Partner while they reside in a nursing home or residential care facility; and
  • any students enrolled in and attending schools, colleges, or universities and dependent on you or your partner for support and maintenance.

** Errors and omissions excepted.  Please always refer to your actual policy for wordings.