Renters Insurance: What Does it Cover?

Photo of Renters Insurance Application

Having a renters insurance policy is a wise investment if you live in a condo, apartment, or other rented space. In some cases, your lease may have required you to have one. Surely, if your possessions are damaged in your home, your rental insurance should cover it, right? Maybe not.

While it is smart and highly recommended to have some form of renters insurance, it usually won’t cover every hazard or every possession you own. Let’s break it down.

What Hazards Will a Renters Insurance Policy Cover?

Most rental insurance policies cover damages caused by:

  • Fire
  • Theft
  • Vandalism
  • Lightning
  • Smoke
  • Explosions
  • Windstorms
  • Falling snow/sleet/hail/ice
  • Volcanic eruption
  • Frozen or exploding pipes
  • Hurricanes (within certain limits and conditions)

Another benefit is most renters insurance coverage extends beyond your home. Usually your policy will cover damage or stolen items from your car or your luggage when you’re on a trip. If you have some belongings locked in a storage unit, they’re usually protected as well even though they aren’t in your living space.

What Items Will a Renters Insurance Plan Cover?

Most renters insurance plans can provide assistance to repair or replace damaged items such as:

  • Clothing
  • Furniture
  • Electronics such as televisions, computers, etc.
  • Jewelry
  • Music instruments
  • Personal electronics such as smartphones, tablets, etc.
  • Artwork
  • Sports equipment
  • Other possessions noted in the policy.

What Hazards Aren’t Covered Under a Renters Insurance Policy?

While renters insurance provides compensation and protection from a wide range of situations, some are usually off the table. Most renters insurance policies will not cover:

  • Flooding caused by rainfall or other natural causes
  • Earthquakes
  • Sinkholes
  • Damages caused by pets

It should be noted that even though these scenarios aren’t covered by most renters insurance policies, you can likely purchase additional protection that could provide coverage for these events. Talk to your insurance provider to make sure that you get the protections you want and need.

What Possessions Aren’t Covered By Rental Insurance?

Even though most rental insurance plans can be altered or have additional coverage purchased to cover most possessions, there are certain items that renters insurance policies won’t cover or would require separate special coverage that isn’t included in the plan. Usually, renters insurance will not adequately cover the cost to repair or replace:

  • High priced jewelry
  • Antiques
  • Highly appraised artwork
  • Rare collectibles
  • Rare sports memorabilia
  • Your roommate’s possessions

As previously mentioned, if you have highly priced or valued possessions, it is best to ask your insurance company about a separate policy to make sure they are properly covered. In terms of protecting your roommate’s possessions, it is less of a legalistic headache for your roommate to have their own renters insurance policy than be named onto yours. Many renters insurance plans require payments as little as $10 per month, so it is usually affordable.

How Much Renters Insurance Do I Need?

It varies. If you don’t have a lot of expensive possessions, you won’t need much coverage and will be able to have a good policy at a very cheap rate. The smart move is to take an inventory of your possessions to calculate the cost it would take to replace them if they were stolen or destroyed. This way you can get an accurate renters insurance quote that can provide the proper coverage for all of your stuff.

Since you know what a renters insurance policy covers, why not get one now? Cost-U-Less Insurance can get you a FREE renters insurance quote on a quality renters insurance plan. Protect your assets and feel protected today!