Understanding What Renters Insurance Does and Does Not Cover

March 2, 2020

Renters insurance is one of the best things you can get to protect yourself while living in any Northern Colorado rental home. Renters insurance is a form of insurance that provides renters with financial protection if property or belongings are stolen, damaged, or destroyed. It also provides you with coverage if your rental is damaged either from your own negligence or an accident.


young couple and renters insurance

While renters insurance can provide crucial financial help in a difficult situation, it does not provide coverage in every situation. Just as important as having it is to know what is and isn’t covered by your policy so that you are prepared to take the appropriate actions.


What Does Renters Insurance Cover?

In general, renters insurance policies are designed to provide financial coverage following certain unexpected events. Coverage is offered for:


  • Personal Property: To repair or replace personal belongings (up to the coverage limit)
  • Liability: To repair property damaged at the rental or cover medical bills if you are responsible for injury to a guest at the rental
  • Additional Living Expenses: To cover the cost of hotels or living expenses if the rental becomes uninhabitable


Keep in mind that your renters insurance policy will not provide protection above your coverage limit. These limits will vary depending on the policy that you have selected. You are also responsible of meeting the deductible set on your policy before coverage is applied.


When Is Personal Property Covered Or Not Covered?

A renters insurance policy will provide you with financial assistance to cover the cost of repairing or replacing items of personal property in the event that they are damaged, destroyed or stolen.  This coverage, however, is only applicable in certain situations.


Basic insurance policies should cover personal property if it is lost or damaged due to certain natural disasters such as fire, hail, or rain. However, basic policies usually do not cover property lost from a flood or earthquakes. You can purchase a flood insurance policy if you live in an area where flooding is common. Renters insurance also does not cover damage to property from pests or rodents.


Property could also be covered if it is stolen after a break-in at the rental home or items that were stolen from your vehicle. The policy will not cover the vehicle itself if it damaged, but hopefully, you have car insurance to help cover that cost.


Not all belongings are covered by your policy, however. Items such as jewelry or expensive collectibles will only be covered up to a certain limit. Your possessions will only be covered if you can prove ownership and value of the items. Take pictures or keep receipts of belongings in the event that you have to file a claim under your policy. Your insurance policy also does not cover damage or theft of a roommate’s possessions. You also do not receive coverage for property that you have lost or property that is damaged by your own doing.


When Is Personal Liability Covered Or Not Covered?

Personal liability coverage under a renters insurance policy offers financial protection in the event that the rental home is damaged or someone is injured on the property from your negligence or accident. This coverage can help you cover the cost of repairing damages, covering court or legal fees, or paying medical bills if you are found to be at fault for the situation.


Liability is covered up to the coverage limit on your policy and helps you to avoid bearing the total cost out of your own pocket. Personal liability is covered for example if a friend slips and falls inside your rental home and breaks their leg. Your insurance will help to cover the cost of their medical bills. It also applies if your dog bites or injures a guest while at the home. Liability protection also provides coverage if you were to accidentally damage the home itself. For example, if you unintentionally left a sink on and the bathroom flooded, or if you forget to turn the stove off and a fire starts.


When Are Additional Living Expenses Covered Or Not Covered?

One of the most helpful aspects of a renters insurance policy is known as Loss Of Use coverage. This coverage helps to cover the cost of alternate living expenses if your rental is damaged or broken into and deemed uninhabitable. With this, you can cover hotel stays or restaurant bills that result.


Additional living expenses are not guaranteed to receive coverage in all situations. For example, if repairs are being made to the rental, you may not receive coverage. However, if the home does not have running water, heat, or electricity due to those repairs, you more than likely do qualify.


To learn more about what is and isn’t covered under your renters insurance policy, contact your insurance agency and carefully look over the details of your policy.

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