What Does Renters Insurance Cover? A Quick [Expert] Overview

When you looked over your lease agreement, you probably saw a section explaining that your building is insured. That section is referring to the insurance policy your landlord has on the building.

Of course, it’s important that your building is insured. However, it’s also important to know that their insurance policy does not generally cover your personal possessions.

That’s where renters insurance comes in.

What does renters insurance cover?

Renters insurance covers your personal property, additional living expenses and personal liability. The best part is, it follows you wherever you go! Of course, there are a few situations this may not apply so talk to your agent.

Let’s take a look at each of these base coverages.

Personal Property coverage: Covers your personal possessions anywhere
in the world (subject to certain limitations).        

If your belongings are damaged or stolen, this coverage can pay to replace them. This goes beyond your home. Your personal belongings are covered anywhere in the world. If your belongings are damaged or stolen while you’re traveling, your renters insurance policy may cover the cost to replace them.

This coverage may apply when your belongings are damaged or lost by:

• Fire
• Smoke
• Theft
• Water damage (exclusions apply)
• Vandalism
• And others (listed in your policy)

Typically, this coverage will pay you the item’s depreciated value. So, if your six-year-old laptop is stolen, this coverage pays the cost to purchase a six-year-old laptop today. This will be less than what you originally paid because of depreciation.

If you’re looking through the items at your place and realizing the depreciated value may leave you with more out of pocket expense than you’d like, consider adding our Personal Property Replacement Cost coverage. This coverage allows you to make an additional claim for the depreciation that was applied once your item is replaced or your property is repaired.

Read more: Insurance Claim: What It Is, How to Start, and What Happens Next

Additional Living Expenses: Covers costs you may incur if you are unable to
stay in your rented apartment/home after sustaining significant damage        

If your apartment/home is damaged and unfit to live in, you may need to stay somewhere else. Some of the costs of your hotel stay, food and other necessary items can be reimbursed with this coverage.

This coverage may also apply when...

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