Renters insurance covers water damage in many scenarios, but won't protect you in every situation. Incidents like an accidental toilet overflow or burst pipe will likely be covered. However, renters insurance policies don't usually pay for damage caused by backed up sewage or flooding, or if you caused the damage through negligence: acting unreasonably or recklessly.

In addition, renters insurance only covers damage to your personal property. Your landlord is responsible for maintaining the building itself, but renters insurance can help you protect your own belongings. This means that you don’t have to replace things like pipes if your plumbing fails; however, you may need insurance to help you replace personal items that are affected.

Does renters insurance cover water damage from ceiling leaks?

Yes, renters insurance protects your belongings if they're damaged by leaks from the ceiling.

It may help to keep in mind that you are not responsible for fixing structural issues or damage caused by a landlord's poor upkeep of the property. If you do notice an issue, like a leaky pipe or a crack in the wall, you should tell your landlord right away, but the landlord is responsible for keeping the building structurally sound and well-maintained, and that includes preventing and repairing leaks.

Reporting structural damage may help you further reduce your own liability, too. Under the terms of most rental agreements, you will not be liable for the damage caused by a structural issue, provided you give your landlord written notice as soon as you see a problem.

Does renters insurance cover water damage from my toilet flooding?

Yes. Renters insurance covers damage to your property from your toilet flooding, as long as it was an accident and not "negligence." Negligence is an action that would be considered by a normal person to be unreasonable or reckless, such as flushing your toilet over and over after it clogs.

In an event like this, where your actions cause damage to the building, you may want to protect yourself by filing a renters insurance liability claim. If the overflow damages your apartment’s floor, your landlord could file a lawsuit against you for the cost of repairs. In this scenario, your renters insurance would pay for any legal costs, even if you lost the case. It would also pay for the damage you caused to the property, if you were deemed liable.

Damage from water that backs up through sewers or drains is probably not covered either, unless your insurer specifically includes this protection — usually for an extra cost.

Does renters insurance cover flood damage?

No, renters insurance does not cover damage to personal property caused by flooding.

In this case, a flood endorsement or a separate flood insurance policy would be needed to cover the losses. If you live in an area of high flood risk, consider purchasing coverage through FEMA's National Flood Insurance Program.

The good news is that your renters insurance does protect your property from rain and storms, at least under certain conditions. If a window breaks during a storm, due to something like violent wind or falling debris, your renters policy may cover the damage caused by incoming water.

But like other damages, your renters insurance does not apply to storm damage if you're deemed responsible for exposing your property. If you leave a window open during a thunderstorm and your furniture is damaged, your renters insurance may not cover the costs of replacing the furniture.

If a storm destroys your home through no fault of your own, however, your renters insurance will provide you with living expenses while you relocate. Without insurance, having to pay for a hotel or a short-term rental — especially in a city like New York or San Francisco — could be very expensive. Renters insurance is a cheap alternative when compared to the cost of a hotel.