Renters insurance typically covers three main areas:
- Personal Property Coverage
This protects your belongings against damage or loss from covered perils such as theft, fire, vandalism, windstorms, lightning, hail, and certain types of water damage (but usually not floods or earthquakes). It can also cover personal property stolen from your car or while traveling. However, damage from pests, pets, or appliance breakdowns is generally not covered unless additional coverage is purchased
- Additional Living Expenses (Loss of Use)
If your rental becomes uninhabitable due to a covered loss (like fire or vandalism), renters insurance can pay for temporary living costs, such as hotel stays and meals, while your home is being repaired
- Personal Liability Coverage
This protects you if someone is injured on your rental property or if you accidentally cause damage to someone else's property. It can help cover medical bills and legal expenses if you are found liable
What Renters Insurance Usually Does Not Cover
- Damage to the physical building (covered by landlord's insurance)
- Floods and earthquakes (special policies needed)
- Damage or theft related to your car or vehicle
- Property used for commercial purposes
- Roommates’ belongings unless they are on your policy
- Damage from pets or pests like termites
In summary, renters insurance provides financial protection for your personal belongings, helps with living expenses if your home is damaged, and offers liability coverage if someone is injured in your rental, but it excludes structural damage and certain natural disasters unless additional coverage is purchased.
