What Does Renters Insurance Cover? What Does It Not Cover?

| December 17, 2012

home interior after hurricane

When shopping for renters insurance, you should not only ask what the renters insurance covers, but also what a particular policy does not cover. You don’t want to learn after the fact that a loss does not qualify for coverage. Read about common examples of coverage, then request specifics from your insurance agent. If you don’t already have one, DexKnows listings can help you find an agent in your area.

Instances typically covered by renters insurance

While every policy differs, you can expect the following to qualify as insured instances if you choose the applicable coverage:

  • Severe Weather — If a hurricane, windstorm or other severe weather were to damage not only the rental property but also your personal belongings inside, a renters insurance policy would help you replace covered items.
  • Theft — Renters insurance also would help you replace covered items in the case of a robbery. Such a policy could make the difference between watching your favorite shows again sooner rather than later if you have to save up for a new TV.
  • Personal Property Away From Home — If you purchase coverage of personal property when you are away from home, such as when you are traveling, you would have coverage in instances of baggage lost or stolen from your rental car, for example.
  • Loss of Use — If you are unable to live in the rental property due to a covered loss, renters insurance would provide payment for living expenses elsewhere.
  • Personal Liability — A policy with this type of coverage provides payment for your legal liability for damages due to covered bodily injury or property damage.

Instances typically not covered by renters insurance

Again, policies vary by company and level of coverage, but the following instances usually are not covered:

  • Water Damage Caused by Flood — A standard renters insurance policy does not cover damage to your personal property resulting from a flood or damage resulting from underground water.
  • Earth Movement — Whether caused by an earthquake or a landslide, your typical renters insurance would not cover losses relating to such an instance.
  • Loss of Business Use — If you provided services out of your home, renters insurance would not cover related losses. For example, a rental property that doubles as a therapist’s office would require a separate business insurance policy for comprehensive coverage.
  • Motor Vehicles — Even if parked in the garage of your home, a renters insurance policy would not cover loss of or damage to an automobile. That would fall under your car insurance policy.

Of note: As with all insurance, a higher deductible could mean a lower annual premium.

To learn more about available renters insurance in your area and to receive quotes, contact an insurance agent. DexKnows listings can connect you with one.

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Category: Insurance

About the Author ()

Pamela Mitchell spent more than 15 years at daily newspapers such as the Hartford Courant and Houston Chronicle before becoming a full-time freelancer. She now writes about a variety of topics, from dining and entertainment to pets and travel.