What does renters insurance cover?

A typical renters insurance policy covers three main areas: personal property, liability, and additional living expenses, providing financial protection for tenants living in rented properties.

Personal property: Covers your belongings, such as furniture, electronics, clothing, and appliances, for unexpected events such as fire, theft, vandalism and certain natural disasters up to your policy limits. Many renters insurance companies offer $20,000 to $60,000 in personal property coverage, though lower limits are available.
Liability coverage: Protects you financially if someone is injured at your rental property or you accidentally damage someone else's property and can help pay for legal fees, medical bills and settlements, up to your policy's limits. You can typically choose $100,000 to $500,000 in liability coverage, and experts generally recommend at least $300,000. If your assets exceed $500,000, consider an umbrella policy, which provides additional liability protection of $1 million or more.
Additional living expenses: Also called loss of use coverage, this helps pay for temporary housing, like hotel bills or rentals, and other necessary expenses, like food and laundry, if your rental becomes uninhabitable due to a covered loss, such as fire or storm damage. Coverage is available for a limited time, so check your policy to see how long you're reimbursed.

Renters insurance does not cover floods or earthquakes. Coverage is available via an endorsement or separate policy.

Are there additional coverages available with renters insurance?

Renters insurance can also inlcude coverages and policy add-ons that protect your identity and off-property possessions or reimburse you for ruined items.

Spoiled food: You lose power after a covered peril, such as a storm. Renters insurance often covers you for the items spoiled in the fridge.
Credit card or financial fraud: Renters insurance can help you if someone steals your identity and charges thousands on your credit card.
Stored items: Living in an apartment means you may have to keep some of your belongings elsewhere. Renters insurance policies may cover those possessions even when they’re not in the apartment, including the storage unit.
Removing debris: A renters insurance policy may help with costs associated with damage from a covered peril.

What does renters insurance not cover?

Renters insurance doesn't cover floods, earthquakes, pest infestation or anything beyond the policy limits. As a named perils policy, a standard renters policy excludes anything that is not among the named perils. It also does not provide coverage for anything owned by your landlord or for the structure itself.

Specific exclusions include:

Flooding from outside the apartment
High-price items that exceed your policy limit
Earthquakes
Pest damage
Intentional damage

Read your policy carefully to be clear about what's covered and what's not.

FAQ: Renters insurance

Does renters insurance cover broken windows?

No. Renters insurance doesn’t cover broken windows because the landlord’s policy is responsible for damage to the structure. However, if a window is broken due to your negligence, your liability coverage will pay for the damage.

Does renters insurance cover accidental damage?

Yes, renters insurance covers accidental damage to your personal property if it's caused by a covered peril. It doesn't cover accidental damage caused by you, such as a TV that falls off the wall due to poor installation. Your landlord's policy is responsible for accidental damage to the structure itself, unless you are found to have caused the damage due to negligence; in that case, your liability insurance will pay for the damage.

Does a renters insurance policy cover fire damage?

Yes. Fire damage is a standard peril that is covered by renters insurance. Your renters insurance will cover fire damage to your personal property, while the landlord's policy will cover fire damage done to the structure.