What Does Renter's Insurance Cover?

Obtaining renter insurance is a good idea, regardless of how many possessions you have. Many renters mistakenly think that, as long as the landlord carries insurance on the property, then they and all their possessions are covered. In reality, a landlord's insurance merely covers the structure and select internal aspects of the property. Rental insurance will not only cover all your personal property, but it will also cover you in the event of any personal injuries to you or any guests while you are living in the rental.

What the Property Is Protected Against: Renters insurance covers your property from theft, damage or destruction from many natural disasters. The policy should list exactly what your property is protected against. Some of the perils included in a standard insurance coverage for renters insurance policy are fire, wind, vandalism, theft, accidental water damage, vehicle or aircraft damage, lightning and smoke. Many perils are not included in a standard policy, such as earthquakes or floods. If you live in an area where these events occur often, you may need additional coverage.

Which Possessions Are Covered: Typical items covered by rental insurance are electronics (TVs, stereos and game systems), cameras, appliances, furniture, sporting equipment, clothes, books and bikes. Many apartment renter's insurance policies have limited coverage for some items of extreme value, including expensive jewelry, fine art, gemstones, valuable collections or antiques.

Liability: A renters insurance policy also covers liability, which is accidental damage to another person or their property while in the rental unit. For example, if a guest in your home slips on the wet bathroom floor and incurs an emergency room visit for stitches, the renters insurance liability coverage will pay for the medical costs associated with that after the deductible.

Roommates: Many renters assume that a renter's policy will cover the belongings of a roommate as well. It's recommended that each resident have a separate apartment renter's insurance policy. However, many insurance agents do allow a primary policyholder to add and subtract other individuals to the policy. The apartment renter's insurance policy should also be readjusted if you move from one rental property to another. While there will be a brief period of time during and just after a move where the new address will be covered, it's in the renter's best interest to get the policy updated as soon as possible to ensure the safety and security of belongings and guests.