What Does Renters Insurance Cover?

Key Takeaways

• Renters insurance covers personal belongings, liability protection, and additional living expenses.
• While not legally required, some landlords make renters insurance a lease requirement.
• Standard policies don’t cover floods, earthquakes, or pest infestations.

What Is Renters Insurance?

Renters insurance is a policy designed for anyone leasing a home, apartment, or condo. Unlike homeowners insurance, which covers the structure of a home, renters insurance focuses on personal property, liability, and additional living expenses. It protects against unexpected circumstances and pays for lost or damaged possessions.

Is Renters Insurance Legally Required?

Renters insurance is not required by law, but some landlords make it a part of their lease agreement. Many property owners require tenants to carry a policy to reduce liability risks and ensure renters can replace their belongings after an unexpected event.

Even when it isn’t required, renters insurance is a smart investment. Without coverage, replacing stolen or damaged belongings and covering liability costs would be an out-of-pocket expense.

Renters Insurance Coverage 101

A renters insurance policy typically covers personal belongings, liability protection, and temporary living expenses. Each policy has limits and exclusions, so review the details of your coverage for any specifics. In general, renters insurance covers the following:

Personal Property Coverage

Renters insurance can cover personal belongings if they are lost or damaged from:

• Fire and smoke
• Theft and vandalism
• Water damage from plumbing issues (excluding flood-related damage)
• Wind, hail, and other storm-related incidents
• Electrical surges

This coverage can apply to furniture, electronics, clothing, and other possessions. Some policies extend coverage to belongings stolen outside the home, such as from a car or while traveling.

Liability Protection

Liability coverage protects renters if someone is injured in their rental unit or causes property damage. This prevents out-of-pocket costs if an accident happens. It can include:

• Medical expenses for guests injured on the property.
• Legal costs if you’re sued for injuries or property damage.
• Coverage for accidental damage to others’ property.

Additional Living Expenses

If a covered event, like a fire or severe storm, makes a rental unit uninhabitable, renters insurance covers temporary housing costs, including:

• Hotel stays
• Restaurant meals
• Additional transportation expenses

What Does Renters Insurance Cover That Landlords Don’t?

Landlord insurance covers the building itself but not a tenant’s belongings. This means that renters are responsible for protecting their personal property. A landlord’s policy won’t cover your liability for injuries or the cost of temporary housing after a disaster.

What Renters Insurance Doesn’t Cover

While renters insurance provides broad coverage, certain exclusions exist, which can include:

• Flood damage (separate flood insurance is needed)
• Earthquakes (requires a separate policy)
• Pest infestations, such as bedbugs or rodents
• Damage from neglect or intentional acts

Choosing a Renters Insurance Policy

When selecting a policy, consider coverage limits and deductibles. Higher coverage limits provide more protection but may increase premiums. Compare quotes to find a policy that fits your living situation.

Get a Renters Insurance Quote Today

Renters insurance offers financial protection and peace of mind. Getting a quote is quick and easy. Start today by exploring renters insurance options from The General’s trusted partners.