What is content insurance?
8 minute read Published on Sep 23, 2025 by BrokerLink Communications
Whether you rent or own a place, you likely have many personal belongings throughout your place to help make it feel like home. But to protect your belongings against common risks like theft, damage, or vandalism, you need what’s known as contents insurance coverage. Here’s how it works.
Why is content insurance important?
Whether you rent an apartment or own a home, you probably have a lot of stuff that’s worth protecting. Clothes, furniture, electronics, décor—it all adds up. That’s where home contents insurance comes in, also known as personal property coverage. It helps cover the cost if your belongings are stolen, damaged, or vandalized.
Since 2019, Canada has seen a 115% jump in personal property damage claims, according to the Insurance Bureau of Canada. And it’s not just the number of claims going up. It's the costs as well. For example, the cost of repairing and replacing damaged property due to severe weather has skyrocketed by 485% since 2019. Just the summer of 2024 alone racked up over $7 billion in insured losses from floods, fires, and hailstorms.
Think about it: if your basement floods or your home is broken into, replacing everything out of pocket could be overwhelming and expensive. While home or tenant insurance covers the structure, contents insurance protects what’s inside, a.k.a. the things that make your space truly feel like home. While it can’t replace sentimental items like photo albums, it can ease the financial burden and help you recover faster if the unexpected happens. Whether it’s included in your home or condo insurance or part of your tenant insurance, it’s an essential layer of protection you don’t want to skip.
What does content insurance cover?
When talking about what contents insurance covers, it can fall under two different categories: what perils it covers and what type of items it covers. Here's a breakdown of both:
Covered perils
A typical contents insurance policy covers many risks (or perils), including:
- Fire
- Smoke
- Water damage
- Theft
- Vandalism
- Windstorms
- Hailstorms
- Falling objects
Belongings
As for the items themselves, contents insurance covers a variety of personal belongings, including:
- Furniture
- Clothing
- Appliances
- Jewellery
- Electronics, like TVs, laptops, game consoles, etc.
- Home décor
- Bicycles
- Instruments
- Sports equipment
Most home insurance policies cover personal belongings, but only up to a certain limit per item; usually between $1,500 and $3,000. This applies to homeowners, renters, and condo owners.
If you own something worth more than that (like high-end jewelry, artwork, or collectibles), you can buy extra coverage for added protection. Learn more about protecting your valuables with BrokerLink.
What is not covered by contents insurance?
While contents insurance protects your belongings from many risks, there are some exceptions to keep in mind:
| What's not covered | What it means |
|---|---|
| Wear and tear | Regular aging or breakdowns, like replacing worn-out appliances. |
| Negligence | If damage happens because of carelessness, like leaving a window open during a storm or not fixing a known leak, your insurance may deny the claim. |
| Flooding | While unexpected water damage, such as a burst pipe, is typically covered, events like overland flooding or sewer backup typically require additional coverage. |
| High-value items | Expensive belongings like high-end jewellery, artwork, collectibles, wine, furs, or even cash will likely need a separate policy. |
| Vehicles | Your car, motorcycle, or ATV won’t be covered under contents insurance. |
| Accidental or intentional damage | If you spill coffee on your laptop or if you break your old laptop in hopes of using insurance money to purchase a new one, it’s typically not covered. |
| Lost items | If you misplace something, that’s on you. Insurance won’t replace it. |
| Roommates’ belongings | If you have a roommate who isn’t family, their stuff isn’t included in your policy. |
| Business-related items | Office supplies or equipment used primarily for work might need separate home business coverage. |
Example of a contents insurance claim denial
Your basement floods after a heavy rainstorm, damaging your furniture, electronics, and stored clothing. You submit a contents insurance claim for the damage, expecting reimbursement. However, your insurance company informs you that your claim has been denied. Here are two possible reasons:
- You didn't have flood coverage. Standard contents insurance doesn’t always cover flooding from external sources (like heavy rain)—that requires overland water coverage.
- Your insurer found out that you didn’t maintain your sump pump or ignored prior warnings about basement leaks. They might argue the damage could have been prevented.
Types of contents insurance coverage
How much money you get from an insurance claim depends on your policy details. It’s essential to understand the difference between actual cash value and guaranteed replacement cost so you’ll know how you’ll be covered in the event of a contents insurance claim. Keep reading to find out more:
Actual cash value coverage
Actual cash value (ACV) is the price an item would sell for today. In insurance, this means you won’t get enough money to buy a brand-new version of the lost or damaged item. Instead, it factors in depreciation, so you’ll get the item’s current value, which has likely depreciated since you bought it. For example, let’s say your 5-year-old TV is damaged by a leak. If your TV originally cost $1,500 but a similar used one now sells for $500, that’s what your ACV insurance will cover. If a brand-new replacement costs $2,000, you’ll have to pay the $1,500 difference out of pocket.
Because insurance companies won’t have to pay out as much for your belongings in the event of a claim, this type of contents insurance coverage is generally more affordable than replacement cost. However, keep in mind that if you do have to make a claim, you’ll be paying out of your own pocket to cover the difference.
Guaranteed replacement cost coverage
The replacement cost is the amount the insurance company would charge to replace your belongings if they were stolen or damaged. Replacement cost gives you money to replace lost or damaged items with new or comparable products. Using the same example as above (your 5-year-old TV damaged by a leak): if your TV originally cost $1,500 but a new comparable model now costs $2,000, your insurance would pay the full $2,000 to replace it (up to your coverage limit).
The advantage of replacement cost coverage is that it provides the full amount needed (up to your coverage limit) to replace your belongings. You can be sure that when an item needs to be replaced, you’ll get enough money to buy a new one, even if the item’s value has depreciated. However, this type of insurance comes with a higher premium than ACV coverage.
How to determine the right coverage amount for contents insurance
Contents insurance covers your belongings up to a certain dollar amount. To know how much coverage you need, you should calculate the total value of your items by going through your home, room by room. Your policy should provide enough coverage to replace most or all of your belongings.
And remember, if you have valuable items, consider getting additional coverage as standard policies have coverage limits or don’t include these items. For example, if you have a large collection of collectables, expensive or valuable jewellery, vinyl records, or Star Wars memorabilia, talk to your insurer about additional coverage to protect it. Below we will review the home inventory list and what it entails:
Home inventory list
While calculating the worth of your belongings, consider creating a home inventory list. Not only does this help you keep track of what you own, but it also helps you give a complete list to your insurance provider if your home is damaged or destroyed, ensuring you get the most out of your coverage. You can do this easily by creating a spreadsheet and going room to room, listing everything that you own. You'll want to include item details like:
- The serial or model numbers
- When and how much they cost when you purchased them
- Receipts or appraisals if you have them
- Even photos or videos as visual proof of item ownership
Don't forget to update the inventory list of your belongings every year with new items you’ve purchased or received (or no longer own) to ensure you have the right coverage.
How much does content insurance cost?
The cost of contents insurance depends on the items you insure. Because there are many ways to customize contents insurance, getting a quote from an insurance company or insurance broker like BrokerLink is the best way to find out how much a policy will cost. Each insurance company calculates this differently. Factors that can affect the cost of your contents insurance include:
- The type of home insurance you have
- Where you’re located
- What your coverage limit is
- Whether you choose replacement cost or actual cash value
- Your insurance deductible
- If you need additional coverage for high-value items
- Any exclusions on your policy
Basically, the premium for contents insurance varies based on your policy type and coverage limits. For homeowners or condo owners, it's included as part of their home insurance. For renters, it is included in their tenant insurance. For cottage or vacation property owners, it is part of their vacation property & cottage insurance.
How to file a contents insurance claim
If you need to file a contents insurance claim, the process is pretty straightforward, so don’t worry. Here’s what to do:
1. Contact your insurer
As soon as you experience a theft, loss, or damage, reach out to your insurance company. Most insurance companies set a time limit for filing a claim. Depending on your insurer, you typically have anywhere from 90 days to 12 months from the date of the loss to submit your claim. It’s always a good idea to check your policy or ask your provider to make sure you don’t miss the deadline.
2. Separate contents from structural damage
If both your belongings and your home’s structure (like walls or flooring) were damaged, keep in mind that these are separate claims. Your insurer will handle them differently.
3. Prepare an itemized list of all damaged belongings
You’ll need to provide details for everything that was lost, stolen, or damaged. For each item, be ready to share:
- What it is (item type)
- Brand & model
- Where you bought it
- How old it is
- What you paid for it
- Proof of purchase (receipts, owner’s manuals, warranty cards, or photos/video if available)
If you created a home inventory list like we recommended above, you can submit that to your insurance provider to speed up the claims process.
4. Submit your claim
Once you’ve gathered all the necessary information, submit your claim through your insurer’s online portal, mobile app, or by calling your insurance representative. Contact BrokerLink today to walk you through the claims process if you need help with submitting a contents insurance claim.
5. Wait for your settlement
Your insurer will review your claim, verify the details, and calculate a settlement amount based on your coverage (either the actual cash value or the replacement cost).
Contact BrokerLink today!
Contact BrokerLink today to learn more about contents insurance. Our licensed and knowledgeable insurance brokers are ready to help you figure out what type of contents insurance will work best for your needs. Plus, a BrokerLink insurance advisor can help you purchase quality coverage by shopping around on your behalf for quotes and help you to file a contents insurance claim.
Contact BrokerLink today to start your contents insurance journey. You can reach us by phone, email, or by visiting any BrokerLink branch in Canada.
1-866-724-2372