what does renters insurance cover?
Those of us who aren't ready to buy a house need to financially protect ourselves, our friends and family, and our stuff, too. Whether you're renting a tiny studio or a 10-bedroom mansion with a bowling alley, renters insurance has your back if disaster (or a little bad luck) strikes.
What renters insurance covers
Not all renters policies are created equal. But in general, renters insurance can cover:
- Your things
- Your personal liability
- Your identity*
Let's take a look at the various coverages designed to protect your finances.
Renters insurance can help you replace your belongings after a covered incident in your home, such as a fire or burglary. (According to data from the 2010 U.S. Census, the average residential burglary resulted in around $2,700 worth of property loss.) And renters insurance covers your belongings anywhere in the world, whether they're stolen from the trunk of your car or your backpack in a Paris hostel.
Renters insurance is affordable — replacing all your possessions is not.
If you're sued because someone was hurt in your apartment or because you (or someone covered under your policy) accidentally injured someone, personal liability coverage can help cover the costs. Renters insurance can help make sure you're not on the hook for unexpected expenses — and lawsuits are nothing if not expensive.
Renters insurance can also help cover medical payments up to a certain limit if someone is injured on your property — though it generally doesn't cover injuries to you or other household members.
Property damage to others
Your renters insurance coverage follows you wherever you go, so if you accidentally break or damage someone else's property, your policy can help pay to replace it.
Additional living expenses
If you can't stay at your place because of damage, maintenance, or another covered incident, your renters policy can help you pay for a place to stay.
Other renters coverage options
Identity theft coverage
Identity theft is a real threat, and being prepared with renters insurance can save you time, money, and endless frustration if it happens to you. If your renters insurance company offers this coverage and you select it, and someone steals your identity, your insurer will work with banks, credit agencies, and financial institutions to help you clear your good name. Legal fees associated with recovering from identity theft may also be covered under your renters insurance.
Read more about identity theft and renters insurance.
Replacement cost coverage on your personal property coverage
Many insurance policies allow you to opt for replacement cost coverage (RCC) instead of actual cash value (ACV) for your personal property coverage. Unlike ACV, RCC doesn't take depreciation into account. You'll pay a little extra on your premium in exchange for a higher settlement if you need to file a property claim.
Disasters and incidents covered by renters insurance
Disasters strike in many forms, but they have one thing in common: unexpected costs. With renters insurance, you can mitigate your out-of-pocket expenses brought on by the following disasters:
- Fire and smoke
- Theft and vandalism
- Falling objects
- Windstorms and hail
- Weight of ice, snow, or sleet
- Accidental water overflow
Is flood damage covered?
Damage due to natural flooding is generally not covered under renters insurance, though you can usually get coverage for water damage or burst pipes.
What about earthquakes?
Earthquake coverage is available in some states. Check with your insurer to find out whether you can add it to your renters policy — especially if you're sitting on a fault line.
Start your quote and customize your renters policy
Ready to see what a reliable renters policy would cost you?
Start a free online renters quote to see what coverage is available in your area, or give us a call at 1-866-439-5633.
Why you may need renters insurance
Here are 3 reasons to get protected.
Know your lease laws before moving into your new place.
Common renters insurance claims
Find out how renters insurance kicks in when you need to file a claim.
*Coverages, discounts, and billing options are subject to state availability, individual qualification, and/or the insuring company's underwriting guidelines.
This page is intended to provide you with general information about renters insurance, and to help you understand the various kinds of coverage. It does not describe or refer to any specific policy or coverage. For information about your particular coverages, we encourage you to read your policy contract and consult your insurance representative with any questions.