What Does Renters Insurance Cover?

What is covered by renters insurance?

Renters insurance is a type of insurance that can protect against a variety of risks in a rented home, including theft, water backup damage, some natural catastrophes, bodily accidents, and more. Renters insurance is advised if you rent a house, apartment, or even a dorm room to protect your valuables and living space in the event of a covered accident.


  • Similar to homeowners insurance, renters insurance is intended for those who rent or lease homes and other properties like apartments.
  • According to the insurance provider USAA, the average renter’s possessions are worth about $20,000.
  • Taking an inventory of your belongings and maintaining an up-to-date spreadsheet of objects are important stages in obtaining and maintaining a renters insurance policy.
  • Items in the residence that are lost or damaged as a result of fire, theft, vandalism, broken plumbing, or electrical issues are typically covered by renters insurance.
  • Renters insurance offers two types of reimbursement: replacement cost, which covers the entire cost of buying new items to replace the damaged ones, and actual cash value, which pays what the property was worth at the time of the loss.

Renters insurance provides protection against loss or theft of personal goods, liability claims, unexpected medical costs for visitors, and increased living costs in the event that you must temporarily relocate. However, because only specific occurrences are eligible for a claim, your insurer won’t pay you for every incident connected to these coverages.

We advise anyone renting a home to think about getting renters insurance coverage as an affordable approach to guard against the financial effects of such occurrences.

What does renters insurance cover?

There are typically four sorts of financial security offered by renters insurance:

  • Damage to personal property: If your property is damaged, renters insurance will pay for the repairs up to the policy’s maximums. Your insurance expressly names (or does not exclude) the numerous causes of damage known as “covered “perils,” such as fire, wind, and theft.
  • Personal liability: Your coverage will cover liability costs, including legal fees, if someone is hurt or their property is damaged, and you are held responsible. Liability protection of up to $100,000 is standard in policies.
  • Additional living costs: Renters insurance will cover additional living costs in the event that your rental home is rendered inhabitable due to a covered risk. This is referred to as loss of usage coverage occasionally.
  • Limited coverage for medical expenses in the event that a visitor is hurt on your property.

Personal Property

This insurance covers the possessions in your rental home. Commonly, specified risks include things like fire, theft, vandalism, problems with the plumbing and electrical system, some weather-related harm, and other identified hazards. A normal HO-4 policy, as it is known, is for renters and covers losses to personal property from a variety of occurrences, including hail, explosion, riots, damage from an aircraft or car, vandalism, and volcanoes, among others. However, floods and earthquakes are not covered and need for separate insurance coverage.


If you are sued for an injury or other losses that other people suffer at your house, liability coverage will protect you up to a specified sum. Additionally, it covers any harm you, your family or your pets cause to other people. It covers legal costs and any court judgments up to the policy amount, which typically starts at $100,000 and can go as high as $300,000. You must get an umbrella policy if you require coverage above that level.

Increased Living Expenses

With this coverage, you’ll be given money to cover the cost of temporary accommodation if one of the listed risks renders your apartment unusable. Hotel costs, dining out, short-term housing costs, and other costs paid while your home is being renovated are all covered.

What Doesn’t Renters Insurance Cover?

You should be aware that many situations are not automatically covered by most insurance, including sewage backup into your home, earthquakes, floods, and other “acts of God.” If you think you are at high risk, you can get these things covered for an extra charge.

Additionally, you might need to get floater insurance in the form of a rider to cover any extremely expensive or precious objects you own, such as high-end electronics, fine jewelry, musical instruments, or a significant collection of artwork and antiquities. In addition, a separate rider might be required to cover hurricane-related wind damage in some places.

Additionally, losses brought on by the tenant’s own carelessness or deliberate actions are not covered by renters insurance coverage.

Does renters insurance cover theft?

If personal property coverage is included in your renter’s insurance policy, it can assist cover the cost of replacing your lost goods. Items taken during a break-in at your rental property or even items were taken from outside your rental are normally covered by this policy. For instance, your renter’s insurance’s personal property coverage could assist in covering the cost of replacing any lost or stolen personal property, such as a gaming system, from your vehicle.

Keep in mind that a deductible normally applies to personal property coverage. This means that before your insurer will contribute to the loss, you will need to pay a specific amount toward the repair or replacement of the covered item.

Make sure to properly study your insurance coverage to determine what might or might not be covered.

What level of personal property insurance do I require?

Consider all you possess. The value of your possessions can build up quickly. How much would it cost to replace them in the event that they were harmed or lost?

You may have a few options when choosing personal property coverage when obtaining a renters insurance policy. Here are some things to remember:

  • You should choose coverage thresholds that are suitable for your circumstances. Making an inventory of the items you keep in your apartment or house will help you determine the worth of your possessions and the appropriate level of personal property coverage.
  • You might also need to choose the type of personal property insurance to buy. Typically, an actual cash value insurance coverage will cover items up to their current market worth (taking depreciation into account). After a covered loss, a policy that offers replacement cost coverage could be able to assist you in paying to replace your belongings at current retail prices.


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