What Does Renters Insurance Cover?
Renters insurance covers damage to, or theft of the things you own and injuries that happen at your house.
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In some cases, renters insurance extends beyond your home. For example, if someone breaks into your car and steals your watch, you may have coverage.
Most renters insurance policies also pay for hotel stays, meals, transportation and other costs you have to pay if your home becomes uninhabitable after a fire or storm.
What does renters insurance cover?
Renters insurance covers damage to your property and injuries that happen in your rented apartment or house.
Plus, many policies will pay for you to stay in a hotel if you can't live in your home, called loss of use coverage. But not all policies offer this coverage, so it's a good idea to talk to your broker or a company representative before you buy a renters insurance policy. You can also find this information in your policy details.
Types of standard renters insurance coverage
Property coverage
It's a good idea to count up the value of everything you own before you buy a renters insurance policy. That's because you don't want to pay for too much or too little coverage. If you have $10,000 worth of things in your apartment, getting a policy with a $30,000 limit means you'll likely pay more than you have to.
Personal liability
Personal liability coverage pays for medical bills, legal costs and property damage that happens in (and sometimes outside) your home. Keep in mind that personal liability coverage only covers injuries and property damage for other people. In other words, your policy won't pay out if you get injured or your own stuff breaks.
- Medical costs: Your personal liability policy would pay for a guest's hospital bill if they slipped and fell in your bathroom.
- Lawyer's fees: If your guest sued you because they slipped on your driveway, your renters insurance policy would also pay for a lawyer to represent you in court.
- Property damage: Your policy may cover repair costs if a water leak that started in your apartment made its way to a downstairs neighbor's unit and caused damage.
Personal liability coverage can sometimes extend beyond your house. For example, you may have coverage if your dog bites another person in the dog park or digs up your neighbor's flower beds.
Loss of use
If you can't stay in your home because of a fire or storm, your policy's loss of use coverage may pay for you to stay in a hotel, Airbnb or other temporary rental. Loss of use coverage will typically pay for some related costs such as meals, transportation and pet boarding.
Loss of use coverage may also pay out if you can't get to your home because of roadwork or downed trees after a storm. That's true even if there's no damage to your home.
But your loss of use coverage won't cover certain perils that your policy excludes, such as flooding or earthquakes. You'll need to buy a separate policy to get loss of use coverage for those disasters.
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Does renters insurance cover...
Appliances?
Your appliances are covered in much the same way as all of your other belongings. If your toaster or refrigerator is destroyed by fire or smoke, theft, flooding from a leaky pipe or another covered peril, you can file a renters insurance claim to have them replaced.
The damaged appliance needs to be located on the premises insured by your policy, unless it is in a storage unit. You cannot, for example, bring your toaster to your office and have it be covered by your renters policy if it breaks. However, you will be covered — albeit to a lesser amount — if you store your appliances in a storage unit, and they are destroyed there.
Bed bugs?
Renters insurance generally does not cover bed bugs. Deterring and eliminating pests, such as bed bugs, is considered part of the standard maintenance of a home and the responsibility of a tenant.
There are exceptions to this rule, depending on where you live and whether the source of the bed bugs can be determined, but you should be prepared to take financial responsibility for the infestation.
Earthquakes?
Renters insurance almost never pays for damage to your things caused by earthquakes.
If you live in an area where earthquakes are common, consider adding earthquake coverage to your renters insurance or buying a separate earthquake insurance policy. Earthquake coverage is usually less than $5 per month, and it can help you recover if an earthquake hits your area.
Fire and smoke damage?
Should a fire start in your rental home, any damage to your belongings caused by the fire or the subsequent smoke will be [covered under renters insurance.
It doesn't matter what caused the fire, from a cooking incident to an electrical appliance malfunction. So long as you did not purposely start it, you're protected.
Smoke as a result of a fire can also ruin your belongings, especially clothing. Luckily, smoke-related damage is also covered in renters insurance policies — even if the fire wasn't in your apartment. Smoke can seep in from a fire in a neighboring apartment or house, and you would still be covered.
Hurricane damage?
Renters insurance protects against most types of hurricane damage. That includes coverage for damage caused by wind, hail, lightning and fire.
However, renters insurance doesn't usually protect against flooding caused by weather. If you live in an area with frequent hurricanes, you should buy a separate flood insurance policy to protect your belongings.
Jewelry?
Renters insurance typically includes some coverage for jewelry. However, it may not protect high-value jewelry or large collections.
In addition, a basic renters insurance policy doesn't usually cover lost or damaged jewelry. Plus, your insurance company may not cover theft by certain people, like a roommate, house guest or someone who works in your home.
You may need to add extra coverage so your jewelry is fully protected. You can also buy separate jewelry insurance.
Mold?
Renters insurance may cover mold damage, but it depends what caused the mold. If the mold was caused by a covered type of damage, such as standing water caused by a leak or some sort of internal flood, then it's likely covered.
But if mold grows as a result of storm surge or heavy rains, you need to have a separate flood insurance policy in order to get your belongings replaced.
Moving?
Renters insurance can cover your personal things if you move yourself. For example renters insurance would cover your stuff if:
- Some of your things get stolen when you’re packing a UHaul
- Your things are damaged in a car accident on the way to your new place
- You accidentally drop your TV
Renters insurance won’t pay if you hire movers, but the moving company should offer you different insurance options.
Roommates?
No, your renters insurance policy will not cover a roommate, unless they are listed on the policy. Roommates are excluded from all renters insurance policy coverages, including personal property, liability and loss of use. Each roommate should purchase their own renters insurance policy.
Theft?
Renters insurance covers the vast majority of theft cases from your apartment or house, as long as the property belongs to you or a family member.
Theft protection also extends outside your home. For example, if your bike is stolen from outside, or your luggage is snatched while you're traveling, you can file a claim with your insurance company to be reimbursed.
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 considered unreasonable or reckless, such as flushing your toilet over and over after it clogs.
Getting extra renters insurance coverage
Many companies let you personalize your renters policy with extra coverage options, called endorsements or floaters. Keep in mind that each coverage extra will typically add to your monthly bill.
The amount you pay for a policy will depend on factors like the type of coverage you get, where you live and the company you choose.
Common renters insurance coverage extras
It's important to remember that many companies will only pay to replace what you own minus wear and tear, called actual cost value. If you bought a couch for $700 three years ago, your insurance company may decide it's only worth $400 today.
You can often buy extra coverage that will pay for the full cost to replace what you own, called replacement cost value. Some companies like Progressive and Geico include replacement cost value with all of their policies.
A normal renters insurance policy won't cover damage caused by earthquakes. But you can buy extra coverage that will pay to repair or replace the things you own after an earthquake.
Earthquake coverage for renters will also pay for you to stay at a hotel, Airbnb, or other temporary rental while your home is being repaired. Plus, policies may cover the cost of removing debris from your home.
Water backup coverage will pay for damage caused by a clogged pipe or sewer. Heavy rain can cause sump pump backups in many parts of the country. A regular renters insurance policy typically won't cover you if this happens.
It's important to remember that a standard renters insurance policy only covers certain types of water damage. For example, water damage caused by a storm, a burst pipe or a fire system is usually covered. But you have to get extra coverage to protect yourself against water damage caused by a failed sump pump or flooding.
Some companies let you personalize your renters policy with identity theft protection. This coverage offers protection against data breaches and cyber extortion.
The amount of coverage you get and the cost you'll pay can differ significantly depending on the company you choose. It's a good idea to talk to your broker or call a company representative to understand your coverage details.
Valuable item coverage will raise your limits for expensive items such as jewelry, high-end electronics and artwork.
A standard renters insurance policy will typically have separate coverage limits for high-value property. For example, you may only have $1,500 of coverage for a ring, laptop or painting even if your overall coverage limit is $30,000.
Umbrella coverage raises your liability limits, typically to $1 million or more. You should consider an umbrella policy if you have more assets than your regular renters policy would cover.
Equipment breakdown coverage gives you extra protection if an appliance you own breaks down. You should consider getting this coverage if you own an expensive appliance such as a flat screen TV or an air conditioning unit, and you would struggle to replace it if it stopped working unexpectedly.
It's important to remember that equipment breakdown coverage only covers appliances you own. Your landlord is responsible for repairing and replacing their property.
This will pay for injuries and property damage caused by a mold infestation. Keep in mind that depending on how the mold was caused, you may already have coverage. For example, if a pipe burst in your apartment causing it to flood, your policy may pay to repair or replace items damaged by mold.
But your landlord may be responsible for covering mold-related damage if they caused the problem, even if it was through neglect.
A standard renters insurance won't cover damage caused by flood water that enters your home. That means you should consider getting a separate flood insurance policy for renters if you live in a first floor or basement unit in a flood-prone area.
Fortunately, flood insurance for renters is often inexpensive. That's because flood insurance for renters doesn't cover damage to the building you live in. Instead, you'll have coverage for the items you own and loss of use coverage if your home becomes uninhabitable.
This extra coverage pays for damage that your pet causes to your home. For example, if your pet chews on a doorframe, you'll have coverage.
Some companies have more coverage options than others. For example, Lemonade offers twice as many extras as Allstate.
What does renters insurance not cover?
Renters insurance doesn't cover damage to the structure of your home.
That's your landlord's responsibility. For example, if a storm caused a tree to fall on your rented house, your landlord's insurance would pay to repair the home and your renters policy would cover your property, medical bills caused by the accident and for you to stay in a hotel, Airbnb or other temporary accommodations.
Renters insurance also doesn't cover water damage caused by flooding or backed-up pipes. But many companies let you buy extra coverage for these perils.
Finally, renters insurance doesn't typically cover bedbugs or other infestations. Your landlord will typically need to take care of extermination costs.
Your renters insurance won't cover your roommate unless you add them to your policy. Adding your roommate to your policy will mean any claims they file will count toward your policy limit.
So it's usually not a good idea to put your roommate on your renters policy unless they're a relative or a spouse.
How does renters insurance coverage work?
After buying your renters insurance policy, you'll pay a fixed monthly cost, called a premium. This is the cost you pay to have insurance.
If you need to use your insurance, you'll contact your insurance company and file a claim. You're responsible for paying a certain amount of money before coverage starts. This is your deductible.
You get to choose the amount of your deductible when you buy your policy. The higher your deductible, the lower the rate of your monthly rate. Although it may be tempting to set your deductible at a very high level to get a cheaper rate, it's important to remember that you'll have to pay that entire amount before you get any coverage.
Frequently asked questions
What does renters insurance cover?
Renters insurance covers the things you own in the event of theft or damage, along with injuries to other people that happen in your home. Plus, most policies will pay for hotel stays and related costs such as meals and transportation if your home is uninhabitable, called loss of use coverage.
Does renters insurance cover injuries?
Yes, renters insurance covers injuries to other people if they happen on your property. In some cases your renters insurance will pay for injuries caused outside the home, such as if your dog bites someone.
What items are not covered by renters insurance?
Renters insurance does not cover earthquakes, floods and infestations. Your renters insurance also won't pay for damage to the structure of your home. That's your landlord's responsibility.
Methodology
Information relating to renters coverage limits came from several major insurance companies including Progressive, Allstate and Lemonade. Rules regarding flood insurance for renters were taken from the National Flood Insurance Program (NFIP).
Other sources include the Texas Department of Insurance and the California Department of Insurance.
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
