What is Renters Insurance?
Renters insurance is a form of homeowners insurance that covers your personal property and belongings and provides liability coverage when you’re living in a structure that you don’t own. Renters insurance provides all the same protection as homeowners policy does except there is no building coverage, which significantly reduces the cost of the policy. The good news is you are still covered for scenarios such as fire, theft and more 🙂
What Does Renters Insurance Cover?
There are three things commonly included in your renters insurance policy: personal property items, temporary relocation expenses and liability in case you are sued.
Most policies will reimburse you for the loss or destruction of your personal belongings due to 16 specific events:
- Fire or lightning.
- Windstorm or hail.
- Riot or civil commotion.
- Damage caused by aircraft.
- Damage caused by vehicles.
- Vandalism or malicious mischief.
- Volcanic eruption.
- A falling object.
- The weight of ice, snow or sleet.
- Accidental discharge of water or steam from within certain household systems or appliances.
- Sudden and accidental tearing apart, cracking, burning or bulging of certain household systems.
- Freezing of certain household systems or appliances.
- Certain sudden, accidental damage from artificially generated electric currents.
Read More on Renters Insurance:
- The Reality of Renters Insurance
- Understanding What’s Covered Under Your Renters Insurance Policy
- 5 Types of Insurance a Millennial Should Have
Did You Know?
Most insurance companies offer reimbursement at replacement cost for your renters policy. Replacement cost policies pay for the actual cost of replacing your possessions with new ones.
Replacement cost coverage will help replace your older items with brand new replacements, without deduction for depreciation. For example, you have a TV that is 5-years-old. When its stolen, you will be paid for the full value of a new TV, not the value of a 5-year-old TV.
Renters policies typically have a cap on what they will pay out for valuable or unique items. If you want to cover grandma’s handed down diamond ring or your collection of music equipment, you may need to purchase a policy add-on to ensure they are covered to their full value.
Additional Living Expenses or Loss of Use
When your house becomes unusable due to problems protected by your policy, insurance coverage for tenants normally provides for additional living costs until your house is repaired. This includes payments for hotels, meals from restaurants and other charges above what you would usually spend.
If you are having guests, you are opening your rental property to risk. In the case of an injury in your rental leading to a lawsuit, the liability coverage in your renters insurance would pay out for someone else’s bodily injury or property damage and typically legal representation. It also covers damage you and your family accidentally do to others.
This can also come into play in the event of a dog bite, but ask your agent and read your policy to be sure it is not excluded.
What Does Renters Insurance NOT Cover?
- Natural Disasters. Your insurance usually won’t cover items damaged by flooding, sinkholes or earthquakes. If you live somewhere that these are common occurrences, you will want to purchase additional coverage.
- Undocumented Items. You’ll likely need to provide receipts or similar during a claim. If you can’t prove you owned the item with some sort of documentation, then you may not be fully reimbursed.
- Roommates’ Belongings. A renters policy covers your personal belongings as the insured person. An item that doesn’t belong to you won’t be covered just because it is in the rental property.
- Rodents, Pests & Bugs. Renters insurance won’t cover damage done by these creatures, or the cost of an exterminator. Be sure to take preventative measures to protect your investments.
- Property Damage. Renters insurance covers your belongings, not the structure. Any damage to the structure will fall under your landlord’s insurance. If you have concerns you’ll want to ask them about their coverage on the structure.
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PS Here’s a few words from one mother of teens that trusts Stromsoe Insurance Agency:
“My experience with Stromsoe Ins. Agency has been very helpful when in need. The whole staff have been corporate and very professional in what they do. I would and have recommended them.”
Janette Corral – Lake Elsinore, CA – Client Since 1999
PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!