Home » What is Renters Insurance, What Does it Covers, and What it Doesn’t Cover

What is Renters Insurance, What Does it Covers, and What it Doesn’t Cover

Landlords seek the protection of their buildings by having homeowners insurance to protect their possessions and any injury accrued by visitors. But how about renters? Unfortunately, the homeowner insurance covers only the building itself, and as a renter, you need “renters insurance.” It protects you financially from unexpected accidents such as fire or theft as it will pay for lost or damaged personal belonging. And relieve you of liability if someone is injured in your rented condo or apartment.

Keep reading to know more about renters insurance and what it does and doesn’t cover. But first, check out Philadelphia Weekly’s article about best renters insurance in Pennsylvania.

What is renters insurance?

Renters insurance is a sort of property insurance that is designed to protect the renters living in a house or an apartment and help them recover from a loss of personal property without financial stress. It includes a group of coverages, typically three types: you, your personal belongings, and your living arrangements. Also, you may customize your policy by adding some optional coverages as needed. There are two types of coverage options in a renters insurance policy:

  1. In actual cash value coverage, you will be paid an equal value of the loss at the time of the accident
  2. Replacement cost is responsible for covering the cost of replacing the lost or damaged items

How does it work?

If you had a disaster such as theft, fire, or someone getting injured on your rented property, you must file a “claim” asking for payment depending on the insurance policy. And your insurer will pay for the damage if it is covered. However, the claim has fees called ”deductible,” which are separated from the premium insurance cost.

Renters insurance Vs. Homeowner insurance

Most people get confused between the two types of insurance; the key difference:

  1. Renters insurance is cheaper than homeowner insurance
  2. Homeowner insurance covers the structure or where the tenant lives, the building itself, not the contents of the rented apartment. In contrast, renters insurance is designed to protect those contents

What does renters insurance cover?

Personal Possessions

Personal possessions include all items in the rented condo or apartment, such as clothes, kitchen appliances, decor, etc. Personal property coverage helps recover the cost of any damaged or lost personal possessions, whether at the rented unit or outside it.

Standard policies cover “Perils,” which are the events that cause damage, such as fire, windstorm, theft, hail, vandalism, etc. The insurer will reimburse you for damages up to your policy limit (minus the claim deductible).

Personal Liability and Medical Payments

Renters insurance provides coverage for the injuries you may be legally responsible for. If someone slips, falls, gets bitten by your dog, and gets hurt, the insurance policy will pay for potential medical bills. Also, it will cover some of the legal expenses if he decides to sue you for his injuries.

Additionally, the insurance policy provides coverage for property damage to others caused by you, such as a broken pipe causing flooding in your neighbor’s unit.

Additional Living Expenses Coverage

Additional living basic costs or loss of use coverage come in handy in an extreme situation that can make the rented place uninhabitable. If the covered perils cause the damage, the insurance company covers all temporary relocation expenses, including hotel bills, food, and gas if the temporary place is far from work. And, in some cases, the repairing process may need a long time; the insurance will pay you to get a temp rental elsewhere. 

Additional Coverages

There are some renters insurance coverages most people are unaware of and can come in handy. 

  1. Food loss if the fridge has broken down on a power failure or mechanical breakdown 
  2. Credit card and check forgery coverage
  3. Other people’s property that you might borrow
  4. Some insurance policies cover off-site stored items

What does renters insurance not cover?

Renters’ insurance covers the personal property damaged by the perils. However, some perils are not covered. While some natural disasters are covered, such as fire and volcanos, flooding and earthquakes are not! Also, damages associated with bed bugs and pests are not covered.

You are most likely to have a roommate, so make sure to list the roommate in the insurance policy or get their own renters insurance. Additionally, the insurance will partially cover the expensive personal property such as jewelry, antiques, etc. However, your car is not included even partially. The insurance covers item theft for the car but not the car; you need to get a car insurance policy with comprehensive coverage. 

How to Get Renters Insurance?

While renters insurance isn’t legally required, some landlords require it, and it’s worth protecting your possessions. Fortunately, there are reasonably priced renters insurance policies. However, make sure to get the renters insurance through a licensed and trusted company or agent such as “Company Name.” Also, remember that some companies provide combined insurance policies for renters and auto insurance if you have a car.


The landlord will protect their building, not your belongings. So to keep accidents from being your bank account killer get renters insurance. It will protect your possessions on and off-site, providing real compensation for any unexpected events.

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