Renters Insurance: What Is Covered?

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If you rent an apartment or a house, it is important to have renters insurance. The owner of the building, apartment or house probably has homeowner’s insurance, but this does not protect you in the event of fire damage, flooding or apartment theft. Protect yourself and your belongings with a good renter’s insurance policy.

Renter’s Insurance Covers Your Personal Belongings

Renter’s insurance insures your personal belongings in the event of a fire, flood or burglary. You will receive funds up to the amount specified in your policy for the replacement of your damaged belongings. It is important to remember that the homeowner’s insurance policy that the owner of your apartment or rental property has in place will only cover the structure, and any belongings that they have in the rental. Your stuff is not covered by their policy. That is why it is critical for a renter to have a renter’s insurance policy.

You can also tack additional clauses onto your policy, such as one for an engagement ring. This clause will usually cover the cost of the engagement ring, not just in the event that it is lost to a fire, flooding or theft, but even in the event that you yourself lost it. Sometimes, the policy will also cover partial ring replacement. For example, if the center stone falls out and is lost, many policies will replace the center stone.

Renter’s Insurance Covers Your Displaced Lodging Costs

In the event of structural damage to your rental property, be it caused by a fire or natural disaster, you will need someplace to live until you figure out whether you are going to wait for your place to be repaired or rebuilt, or if you are going to find a new place to live. This can take a few days, or it can take a few months. Renter’s insurance covers the cost of lodging during this period of time that you are displaced. No worrying about whose couch you’ll be sleeping on, or having to move back home with mom and dad. With a renter’s insurance policy in place, usually you will be put up in a motel or hotel efficiency unit, or other temporary housing with no cost to you.

Renter’s Insurance Protects You from Lawsuits

No one ever thinks that they will be sued, but we live in a litigious society in which lawsuits are not uncommon. Renter’s insurance helps to protect you in the event of a lawsuit. Here is an example. You live in an apartment, and found this fun, decorative entry rug for the upcoming holiday to put outside your apartment door. Your neighbor trips on the rug, falls and breaks his leg. Your neighbor decides to sue you. Your renter’s insurance policy will cover this liability. The insurance company will hire an attorney, handle the lawsuit and pay for any damages up to your insurance limits.

A renter’s insurance policy provides peace of mind for any renter. You can’t have a home without a homeowner’s insurance policy, so why would you rent one without a renter’s insurance policy?

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Emily Gojko: I am a writer, marketer, and manager with a strong background in real estate development and management. I am also a native New Yorker with an obsession for home design shows, so I have personal and professional experience making the most of small spaces, and dealing with good and bad living situations.

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