Does renters insurance cover fire damage?

What type of fire damage does renters insurance cover?

Renters insurance covers fire and smoke damage to your personal belongings. Coverage applies even if the fire starts outside your rental and damages your belongings. Your policy also provides coverage for certain additional expenses if a covered fire forces you to leave your home.

Fires can easily start for several reasons—a cooking mishap, an electrical appliance gone awry, or an errant candle. Even if a fire doesn’t start in your home, your home could still be affected by smoke damage. Renters insurance helps if your personal belongings are destroyed or damaged.

Renters insurance generally covers:

Fires started accidentally in your home
Fire damage from outside your home
Mandatory evacuations in your area
Smoke damage
Fires started by natural disasters

Renters insurance includes coverage for your personal belongings in the event of a fire or related smoke damage. While the physical dwelling remains the responsibility of your landlord, your insurer will typically pick up the bill for personal items like:

Clothing
Furniture
Electronics
Appliances
Computers
Jewelry
Art

“Personal property items that are covered are everything that one owns, from the draperies all the way to personal care items, such as a toothbrush,” says Benjamin Bruinekool, principal of AAA/Western Michigan Insurance Agency.

Learn more about what renters insurance covers and how to buy.

Types of fire insurance coverage for renters

Renters insurance provides three main types of coverage after a fire: personal property, liability, and loss of use. Personal property coverage protects your belongings; liability coverage addresses damage or injuries for which you are responsible; and loss of use coverage helps pay additional living expenses after a covered loss.

You will need to pay a deductible before your insurance coverage pays for a loss, with a common deductible being around $500 or $1,000 for a renters insurance policy.

Personal property

The personal property portion of your renters insurance coverage includes repairing and replacing your personal belongings, like clothes and electronics.

Liability coverage

Liability coverage protects you when you are legally responsible for covered injuries or property damage. If you accidentally start a fire that damages someone else’s property, liability coverage may help pay covered costs. Liability coverage applies when you are found responsible for damage to your landlord’s property, depending on your policy.

“It safeguards you from the financial loss that you will be undergoing to compensate a third party for physical or financial harm that might have befallen them as a result of your actions. If the third party presses charges, the insurance company will cover you, according to [your] plan,” says Anthony Martin, CEO & founder of Choice Mutual.

Loss of use

Loss of use coverage, also called additional living expenses (ALE) coverage, helps pay certain extra costs when a covered fire makes your rental uninhabitable. It will reimburse you for things like shelter and food. Most renters insurance policies will reimburse hotel stays, meals, and even increased commuter costs.

You can check the declarations page of your policy to see exactly what is covered and the limits for each.

How much coverage does renters insurance provide for a fire?

Your renters insurance fire coverage depends on the personal property limit you selected when you bought the policy. The insurer pays covered losses up to that limit, after applying your deductible and any applicable policy restrictions. Valuables like jewelry and antiques may require additional coverage, as some high-value items have special limits.

To help you determine how much coverage you should carry, take an inventory of your belongings.

“I advise insureds to periodically walk around their home or apartment using a video camera and store the videos to the cloud,” says Bruinekool. “This way, if there is a loss, the video helps trigger a memory of what they had.”

The value of your belongings will help decide your renters insurance rates.

Type of coverage	Ideal for...	Property coverage limits	Liability coverage limits
Minimum renters insurance coverage	Few belongings, cheap premiums	$10,000 - $20,000	$100,000
Mid-level renters insurance	Average coverage	$50,000	$100,000+
Premium renters insurance coverage	Expensive jewelry and valuables	$60,000+	$300,000

Your policy also determines how your insurer values damaged belongings. Actual cash value (ACV) accounts for depreciation, so the payment for an older item could be less than what you would pay to replace it. Replacement cost coverage pays the amount needed to replace a covered item, subject to the policy terms and limits.

“When you set up your insurance, you agree to pay a deductible,” explains Jim Pendergast, senior vice president of altLINE, a division of Alabama’s Southern Bank Company. “In the case of a fire, the insurance company will pay for everything listed in your damages list except the deductible. So, if your $1,000 sofa goes up in flames and you have a $100 deductible, the insurance company would pay $900 to help you get a new sofa.”

However, there are limits that may apply. Before you finalize your policy, talk to your renters insurance company to see what coverage is most suitable for your belongings.

Find the best renters insurance companies for 202.

What type of fire damage isn't covered by renters insurance?

Renters insurance does not cover damage to the rental building itself because the landlord’s insurance covers the structure. Your policy also excludes intentional fires you cause and does not cover damage to your vehicle.

This helpful chart breaks down tenant insurance for common items.

	Renters insurance

Dwelling/structure	✔
Personal liability	✔
Personal belongings	✔
Loss of use	✔
Water damage	✔
Wind/hail	✔
Flood	May require an additional policy
Earthquake	May require an additional policy

Your renters insurance doesn’t cover the physical rental unit. Instead, that is covered under landlord insurance, including coverage for things like the walls, flooring, and cabinetry.

Renters insurance also will not cover damage from a fire that you set intentionally, and it only covers your personal property. Cars are not considered personal property. So, if the fire were to extend to the garage and damage your car, you'd need to file a claim with your car insurance company.

Fire safety devices and renters insurance discounts

Some renters insurance companies offer discounts for qualifying fire safety devices installed in your rental. Smoke detectors, fire alarms, sprinkler systems, carbon monoxide alarms and fire extinguishers are among the devices that could qualify.

The available discounts vary by insurer, so check with your insurance company to see which devices qualify and how much you could save.

Some of the common devices that can earn you a discount include:

Fire alarm
Smoke detector
Carbon monoxide alarm
Sprinkler system
Fire extinguisher

You could also lower premiums with other safety-related savings, such as discounts for deadbolts or a burglar alarm system. Ask your insurance company what discounts are available to help you save money on your policy.

How to make a fire damage claim on renters insurance

To file a renters insurance claim after a fire, contact your insurer promptly, document your damaged belongings, and submit all requested reports and forms. Your insurer will review the loss, determine what your policy covers, and issue payment for an approved claim after applying your deductible.

If a fire occurs in your home, there are several steps you need to take to receive reimbursement from your renters insurance company. Here's the process to file a claim.

Immediately contact your insurance company: As soon as possible after the fire, contact your insurer to begin the claims process. The sooner you file, the sooner the insurance company can begin the process to issue a reimbursement.
Complete a “proof of loss” form: This details the damages incurred from the fire. To expedite the process, be sure to include any photos or videos of damaged property.
Include an official report: Provide a copy of the report from the police or fire department, if available.
Provide a copy of your inventory: Your inventory should include reasonable estimates for value; receipts aren’t typically required.
Share living arrangements: If you must leave your rental property due to fire or damage, contact your insurer immediately to find out about loss of use coverage limits.
Schedule the adjuster: Your insurer may require that an adjuster visit the property to determine the extent of the damage.
Wait for approval: After collecting all necessary information, your insurance company will review your claim to determine appropriate reimbursement.
Receive payment: Once your claim is approved, your insurer will send you a check.

If you have questions or require assistance, customer support or your local agent can help.

FAQ: Renters insurance fire coverage

Does renters insurance cover smoke damage?

Yes. A renters insurance policy covers smoke damage from accidental fires.

Who pays when a neighbor’s fire spreads to your apartment?

Your renters insurance covers fire and smoke damage to your personal belongings when a neighbor’s fire spreads to your apartment. Your landlord’s insurance covers damage to the rental building itself. However, some exclusions may apply.

What precautions should you take to protect your home from fire?

To help avoid fires in the home, never leave burning candles unattended. Always supervise cooking and turn off the oven and stove when you are finished cooking. It’s highly recommended to have a fire alarm, smoke detector, and fire extinguisher in the home in case of a fire.