Renters insurance is often seen as a safety net for tenants, protecting them from unexpected losses and damages.
While many renters understand that this type of insurance covers things like theft, fire, and water damage, there are several surprising aspects of renters insurance coverage that you might not be aware of.
Equally important are the things it doesn’t cover, which can leave you in a bind if you’re not prepared. Here’s a closer look at the surprising inclusions and exclusions of renters insurance.
Surprising Things Renters Insurance Covers
Belongings Outside Your Home:
- Travel Coverage: If your items are stolen while you’re traveling, your renter’s insurance policy might cover the loss. This includes incidents like a stolen suitcase at the airport or items taken from your car while on a road trip.
- Storage Units: Items stored in off-site storage units can also be covered. This is particularly useful if you’re using storage for seasonal items or excess belongings.
Personal Liability:
- Legal Fees: If someone sues you for an injury that occurred in your rented home, your renter’s insurance can cover the legal fees and medical payments, protecting you from significant financial strain.
- Damage to Others’ Property: If you accidentally damage someone else’s property (like knocking over a neighbor’s expensive vase while visiting), your policy might cover the cost of repairs or replacement.
Medical Payments:
- Guest Injuries: If a guest is injured in your home, your renter’s insurance can cover their medical expenses, regardless of fault. This can include minor injuries like a sprained ankle or more serious accidents.
Loss of Use:
- Temporary Living Expenses: If your rented home becomes uninhabitable due to a covered peril, your policy might pay for additional living expenses such as hotel bills, restaurant meals, and other costs incurred while your home is being repaired.
Food Spoilage:
- Power Outages: If a power outage causes your refrigerator to fail and food spoils, some policies cover the cost of replacing the spoiled food. This can be particularly helpful after prolonged outages due to severe weather or other incidents.
Surprising Things Renters Insurance Leaves Out
Bedbug Infestations:
- Pest Control: While renters insurance can cover damages from certain types of infestations, bedbugs are typically excluded. The cost of extermination and any associated damage usually falls on the tenant or landlord.
High-Value Items:
Related: Does Renters Insurance Cover Bedbugs?
- Limited Coverage: Expensive items like jewelry, fine art, and collectibles often have limited coverage under standard renters insurance policies. You might need additional coverage, known as a rider or floater, to fully protect these valuables.
Earthquakes and Floods:
- Natural Disasters: Standard renters insurance does not cover damage caused by earthquakes or floods. If you live in an area prone to these natural disasters, you’ll need to purchase separate policies specifically designed for them.
Roommate’s Belongings:
- Shared Spaces: Your policy typically covers your belongings and not those of your roommates, unless they are explicitly included in the policy. Each roommate should have their own renters insurance for comprehensive coverage.
Maintenance Issues:
- Wear and Tear: Damages resulting from lack of maintenance or regular wear and tear are generally not covered. This includes problems like mold, rust, or gradual water damage due to leaky pipes.
Conclusion
Understanding the full extent of what renters insurance covers — and doesn’t cover — can help you make more informed decisions about your coverage needs.
While it offers a broad range of protections, there are notable exclusions that might require additional policies or careful consideration.
Always read the fine print and discuss your specific needs with your insurance provider to ensure you have comprehensive protection.