What Is Renters Insurance and What Does It Cover?

Melissa Matzenbacher-Galan | Nov 9, 2022 | minute read

What Is Renters Insurance and What Does It Cover?Do you rent the house or apartment you live in? If so, you may be under the misconception that – because you don’t own the building – you do not need insurance.

The property owner is most likely insured; however, the owner’s insurance only protects the structure – not your belongings. Without renters’ insurance, you may be forced to shoulder all the costs of your possessions if there is a fire or a burglary.

What Is Renters Insurance?

A renters insurance plan is a combination of coverages designed to protect renters who live in a home or apartment. A standard renters insurance policy provides coverage that assists in protecting you, your personal belongings, and your living expenses in the event of a covered loss or your personal liability.

What Does Renters Insurance Cover?

Personal Property Damage

What Does Renters Insurance Cover?

If your personal property is damaged, renters’ insurance will cover the cost of repairs or new replacement of your possessions up to the limits of your policy. Fire, rain, wind, and theft are examples of covered perils.

It also applies to anything you carry in your car that is not immediately related to the vehicle (such as CDs, clothes, and car maintenance supplies). You hard right – if you travel with personal belongings (such as a laptop or clothes) and someone steals it, your insurance provider may compensate you.

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Personal Liability

If someone is hurt or injured or their property is damaged, and you are held responsible, your policy will pay liability costs, including legal fees.

If your dog bites someone while they are inside your apartment or rental house, they are taken to the emergency room by ambulance, and they later sue you, personal liability coverage under your renter's insurance policy will pay up to the policy limit for legal representation and the settlement or judgment. We recommend limits of at least $1,000,000.

Additional Living Expenditures

If your rental house becomes uninhabitable due to a covered risk, renters’ insurance will reimburse you for your additional living expenses. This is also known as “loss of use coverage.”

Medical Payments

There is limited coverage for medical expenses incurred by a guest on your property.

What Renters Insurance Does Not Cover

  • Damage or loss to the structure or building.
  • Certain property over a certain value, like guns, jewelry, or coins.
  • Cash over a specific amount

Reasons To Consider Renters Insurance

  1. Protects your personal property like furniture, computers, clothes, etc.
  2. Provide liability coverage in the event you are sued.
  3. Covers additional living expenses in the event of a covered loss.
  4. The property owner will not provide coverage.
  5. It is very affordable.

You will most likely have to pay a deductible before your renter's insurance will assist in paying for a covered loss. The level of your deductible is frequently linked to the cost of your policy's premium (the amount you pay your insurance company to keep your policy in force).

In most cases, the smaller your premium, the higher your deductible for each covered loss. Your insurance specifies your deductible and premium, which may be altered to fit your budget and demands.

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Contact the experts at Leap Carpenter Kemps Insurance Agency. They have been in business for over seven decades and have licensed experts on hand to guide you on the best coverage for your organization. Call for a free quote today!

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About The Author

Melissa specializes in auto insurance, flood insurance, homeowners insurance, special event insurance, renters insurance, and watercraft insurance. She prides herself on knowing our markets inside and out.

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