If you are a renter, you may think you don’t have to purchase your own insurance. After all, your landlord has insurance coverage for the building, right? However, many renters don’t realize that the landlord’s policy won’t cover their personal belongings.
Because of this, you must purchase renters’ insurance.
However, before going out and purchasing this policy, it’s a good idea to learn what renters insurance does no cover and what it will cover. Keep reading to find out.
What Will Renters’ Insurance Cover?
If you purchase insurance specifically for renters, it will cover:
Personal Property Damage
If the personal property you have experienced damage due to a covered issue, the renter’s insurance provider will cover the cost of the damage up to the limits on the policy. Covered perils include a damaging event that is included in your policy.
Keep in mind, most renters’ insurance policies will exclude damage caused by theft, wind, and fire.
Personal Liability
If someone is injured or has property damaged and you are blamed for this situation, the renters’ policy will cover liability costs. These costs include coverage for legal defense if required.
Most policies will provide a minimum of $100K in total liability coverage.
Additional Living Expenses
If your apartment or rental home becomes uninhabitable because of a covered peril, the renter’s insurance policy you have will cover the cost. This includes all normal living expenses.
In some situations, this type of coverage is called loss of use coverage.
Medical Payments
You can receive limited coverage for any related medical costs if someone is injured while on your property.
What Doesn’t Renter’s Insurance Cover?
While renter’s insurance covers many things, certain things aren’t covered as well. These include:
Pests and Bed Bugs
In most cases, renters’ insurance policies won’t cover damages or costs related to bed bugs or other pests, like rodents. These are typically considered a maintenance issue and therefore not covered by most renters’ policies.
Car Damage or Theft
If you own a vehicle, and it is stolen or damaged while on your rental property, your renter’s insurance policy will probably not cover it.
For this, you need car insurance that includes comprehensive coverage. However, anything you have inside the damaged or stolen car will be covered by the renter’s insurance.
Flood or Earthquake Damage
Standard policies don’t typically offer coverage for flood or earthquake damages. However, most companies offer this as an add-on to the policies.
Answering the Question: What Does Renters Insurance Not Cover?
If you have wondered, what does renters’ insurance not cover, you should have a pretty good idea of the answer now. As you can see, there are specific things that are and are not covered, and knowing what they are can help you make an informed buying decision.
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