What Does Renters Insurance Cover?Posted on Dec 28, 2015
If you rent your home or apartment, you should seriously consider getting renters insurance. True, your landlord is responsible for insuring the building against fire and other disasters, but neither your personal property nor liability is covered by your landlord’s insurance. Protect against the unexpected with renters insurance. Here’s what this type of coverage provides.
Personal Property Coverage
Picture all of your belongings. Now consider their combined value, which is probably in the tens of thousands of dollars. Renters insurance covers the loss or destruction of these personal belongings caused by the following:
- Building fire
- Hail or windstorm
- Flood caused by the plumbing system
- Theft or vandalism
- Impact by a vehicle
Some of the items you can cover under your policy include:
- Appliances and kitchen wares
- Computers and other personal electronics
- Clothing and jewelry
- Sports equipment
All of these personal belongings and more are covered by renters insurance, even if the items are damaged or stolen while outside your home. So if you accidentally drop your laptop while on vacation or your jewelry is stolen from your hotel room, you’re covered.
Standard renters insurance policies also come with liability coverage so you don’t have to empty your bank account every time something goes wrong on your property. For instance, say the babysitter trips down the stairs and sustains bad enough injuries that she must go to the hospital. She may choose to sue you for damages. If you’re found responsible for the accident, your renters insurance liability coverage helps you pay for legal expenses, the babysitter’s medical bills and other damages.
Liability coverage even extends to damages that you or a family member accidentally causes. For example, if your son hits a homerun through the neighbor’s window by accident, your liability plan should cover the damages.
Living Expenses in Case of Emergency
It’s obvious to think about the cost of replacing your belongings in the event of a flood or fire, but what if your home is rendered unlivable? Renters insurance helps you rest easy, knowing you have help paying for temporary living accommodations until your apartment or home can be restored to a livable condition. Everything from hotel bills to restaurants to laundry service fees you wouldn’t normally incur could be covered.
What Standard Renters Insurance Doesn’t Cover
- Intentional harm: If an incident resulting in property damage or bodily injury occurs on your property, you have to prove it was an accident in order to receive coverage. Harm inflicted intentionally by the insured or family member of the insured is not covered.
- High-priced items: If you have an expensive art collection or lots of high-tech equipment, it may be worthwhile to take out extended coverage that provides you with higher claim limits. Receive an appraisal from an expert so you have proof of the high-value items. Your deductibles may increase, but having added peace of mind that comes with the additional coverage could be well worth it.
- Natural disasters: Damage caused by many different types of natural disasters – from flash floods to forest fires to sinkholes – may not be covered by your renters insurance policy. Make sure you know exactly what conditions your plan covers and consider purchasing additional coverage if needed to fill in the gaps.
- Non-family member’s possessions: Only family members living under the same roof receive coverage from a single renters insurance policy. If you live with a roommate not related to you, they need to take out their own policy for their belongings to be covered.