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Key points

  • Renters insurance covers your personal property, additional living expenses, liability insurance and medical payments to others. 
  • While not mandated by law, renters insurance provides you with a layer of financial protection at a reasonable rate.

If you rent your home, renters insurance can provide coverage for your personal property, as well as coverage for liability, additional living expenses and medical payments. Here we’ll explain what renters insurance covers and does not cover.

What does renters insurance cover?

Also known as an HO-4 policy, renters insurance covers renters in four key areas: personal property, loss of use, liability and medical payments to others.

Personal property coverage

Personal property coverage pays to repair or replace your belongings — like furniture, clothing, electronics, appliances and decor — if they are stolen, damaged or destroyed by problems listed in your policy, such as fire, smoke, burst pipes and vandalism. 

Most renters insurance policies pay out for your belongings’ actual cash value, meaning depreciation is factored in. You may be able to upgrade to replacement cost coverage to be paid out at today’s prices in the event of a claim. 

Personal property coverage pays if your belongings are damaged by 16 different problems listed in your policy:

  • Accidental discharge or overflow of water or steam.
  • Damage by aircraft (not your own).
  • Damage by vehicle (not your own).
  • Explosion.
  • Falling objects.
  • Fire or lightning.
  • Freezing.
  • Riots.
  • Smoke.
  • Sudden and accidental damage due to short circuiting.
  • Sudden and accidental tearing, cracking, burning or bulging.
  • Theft.
  • Vandalism.
  • Volcanic Eruption.
  • Weight of ice, snow or sleet.
  • Windstorm or hail.

Certain high-value items, like jewelry and firearms, have limits on how your insurer will pay out in the event they are stolen. You can add scheduled property coverage in order to increase your coverage limits on those high-value belongings. 

Additional living expenses coverage

Also called loss of use coverage, this pays for your additional living expenses if your rented property becomes uninhabitable due to a disaster listed in your policy — such as fire or tornado — and you need to live elsewhere while it’s repaired. This coverage reimburses you for things like temporary housing, meals, pet boarding and other approved expenses incurred through displacement. 

Liability insurance

Liability insurance pays for someone else’s damaged property damage or injuries if you’re at fault for either. For example, if your dog attacks someone at the park and they need medical expenses, liability insurance can pay for those expenses. Or if you hit a golf ball through your neighbor’s window, liability insurance can help pay to repair it. 

Liability insurance can also cover your legal fees and settlements if you’re sued following an accident. The standard liability limit in a renters insurance policy is $100,000, but you can buy more. It’s a good idea to buy as much liability insurance to cover what you could lose in a lawsuit. If you want more coverage than your policy provides, consider umbrella insurance.  

Medical payments coverage

Medical payments coverage pays for a guest’s medical expenses if they’re injured on your property, regardless of who was at fault. It’s meant to cover minor medical claims, so coverage limits typically range from $1,000 to $5,000. Larger medical claims would generally be covered by your liability insurance, if you were legally liable for the injuries.

Does renters insurance cover bed bugs?

In general, renters insurance does not provide coverage for damage caused by bedbugs or the costs associated with bedbug infestation removal. This extends to other forms of pest and insect infestations as well. Bedbug-related expenses are typically not covered because insurance providers view pest control as part of routine home maintenance, while renters insurance is primarily designed to compensate for unforeseen events that cannot be prevented.

Does renters insurance cover flooding?

Similar to homeowners insurance and other property insurance types, renters insurance typically does not include coverage for flood damage. Flood damage is usually defined as water intrusion from external or subterranean sources, as opposed to internal issues like a broken pipe within the rental unit. If your rental property is located in a flood-prone area and you are concerned about flooding, you may have the option to purchase flood insurance either through your insurance company or directly from the National Flood Insurance Program.

Does renters insurance cover mold?

In most cases, mold damage is not covered by a renters insurance policy unless it can be traced back to a covered issue, such as an internal plumbing leak or a problem originating in a neighboring unit. Ongoing mold problems, mold resulting from neglect or poor maintenance, or mold caused by flooding or external leaks are unlikely to be covered by renters insurance. However, additional coverage may be available if you have specific concerns about mold, although mold issues are relatively uncommon in rental units.

Does renters insurance cover temporary housing?

Renters insurance typically includes coverage for additional living expenses if you are forced to temporarily relocate from your rental unit due to a covered disaster. This coverage extends to expenses that exceed your usual living costs, including those related to temporary housing such as hotel bills or the rental of a temporary living space.

Does renters insurance cover dog bites?

Under certain circumstances, a renters insurance policy’s personal liability coverage can apply to dog bite incidents. For example, if the policyholder’s dog bites a guest, a mail carrier, or someone not residing in the household while on the property, the policy may cover medical expenses and provide protection against potential lawsuits arising from the incident.

Does renters insurance cover property damages?

A standard renters insurance policy typically covers damage to the policyholder’s personal property up to the specified policy limits, provided the damage results from a covered event. Coverage for personal property damage is one of the most common types of protection offered in renters insurance. Additionally, renters insurance can include personal liability coverage for accidental damage to someone else’s property.

Does renters insurance cover fire damage?

Fire damage is generally included in a standard renters insurance policy. This coverage encompasses damage or loss of personal property resulting from a fire or smoke. If the rental property becomes uninhabitable due to severe fire damage, the policyholder may also receive compensation for additional living expenses incurred while residing elsewhere.

Does renters insurance cover car theft?

Renters insurance typically covers theft of personal belongings from a car parked on the rental property. However, it does not extend to theft of the vehicle itself or its components, even if the theft occurs while the car is on the rental property. Coverage for vehicle theft or damage is typically provided by an auto insurance policy.

Does renters insurance cover moving expenses?

Ordinary moving costs are not typically covered by renters insurance. However, if you are required to relocate due to substantial damage to your rental property that renders it uninhabitable, the additional living expenses coverage in your policy can help cover moving expenses. This may include expenses related to travel, temporary rental units or hotels, and additional meal costs beyond your usual living expenses.

Additional coverages available

Your insurer may offer upgrades or coverage add-ons that you can add to your renters insurance policy for an additional cost. Here are two common upgrades. 

  • Replacement cost coverage: Pays for your personal belongings at today’s prices, rather than their depreciated value. If you want to be reimbursed as if your belongings were new, ask your insurer if you can upgrade to replacement cost coverage. 
  • Scheduled personal property coverage: Certain high-value belongings have coverage limits for theft, like $500 for stolen jewelry. You can add scheduled personal property coverage to your policy to increase your theft coverage limits on certain classes of items. 

Types of damage covered by renters insurance

Renters insurance covers damage caused by these problems:

  • Accidental discharge or overflow of water or steam.
  • Damage caused by an aircraft (not your own).
  • Damage caused by a vehicle (not your own).
  • Explosion.
  • Falling objects, like trees.
  • Fire and lightning.
  • Freezing.
  • Riots and civil commotion.
  • Smoke.
  • Sudden and accidental damage due to short circuiting.
  • Sudden and accidental tearing, cracking, burning, or bulging.
  • Theft (also theft outside of your home, like if your stuff is stolen out of your car).
  • Vandalism.
  • Volcanic Eruption.
  • Weight of ice, snow, or sleet.
  • Windstorm and hail.

Your renters insurance may also cover the following: 

  • Food spoilage. Your renters insurance policy may reimburse you for some food loss if you lose power due to a covered reason, like a lightning strike. 
  • Identity theft. Renters insurance may cover identity theft restoration services.
  • Lock replacement. Your insurer may pay to replace your locks if damaged by a covered event, like a home break-in. Your landlord may cover this cost, though. 

What does renters insurance not cover

As with any type of insurance, there are specific things that renters insurance does not cover. Exclusions will vary across policies but commonly include:

  • Dwelling coverage, or coverage for the structure of the building. This is covered by landlord insurance. 
  • Common area accidents in places such as apartment building halls or stairwells fall under landlord insurance rather than renters insurance.
  • Damage caused by your pet in your rental.
  • Damage caused by floods, earthquakes and landslides, but you can buy flood insurance or earthquake insurance if these issues occur in your region.
  • Wear and tear, maintenance issues, pest infestations and damage due to age. 
  • Intentional damage.
  • Water damage caused by drainage, sewage or sump pump backups. 

How to buy renters insurance

Most major insurance companies that sell home insurance also offer renters insurance. Here are some steps to take as you enter the buying process.

  • Estimate the value of your belongings. It’s a good idea to create a home inventory to itemize and calculate the total value of your belongings so you know how much personal property coverage you need. 
  • Consider how much liability coverage you need. In the event you’re sued over damage or injuries to another party, consider how much you can afford to lose in a lawsuit. You should estimate your overall assets in order to get a good idea of how much liability insurance you need.
  • Consider extra coverage. If you have high-value items or live in an area that’s at risk for earthquakes, consider if you need to add additional coverage to your policy.
  • Check for discounts. Renters insurance companies offer many different discounts, like if you go claims-free for a certain amount of time or if you install a burglar alarm.   
  • Pick a deductible. The higher your deductible, the cheaper your renters insurance will be, but that also means you’ll receive less in the event of a claim payout. 
  • Compare renters insurance quotes and companies. It’s a good idea to compare renters insurance quotes from multiple companies to ensure you’re getting the best price for your coverage needs. 

How do I file a renters insurance claim?

If your belongings are stolen or damaged by a problem covered by your policy, like a fire, you’ll file a claim with your renters insurance company. For property damage claims, a deductible is subtracted from your claim payout, but not for liability claims. 

Completing the claims process typically entails several steps. These frequently include:

  1. Get a crime report. If you’re filing due to theft or vandalism, report the crime to the police and ask that they create a report. Make sure you take down the names of any officers who worked on your case.
  2. Take photos of the damage. The more evidence of the damage you can provide to your insurance company the better. 
  3. Call your insurance company. In addition to letting them know there was damage or loss, make sure to ask how long you have to file a claim and how long the process will take from start to finish.
  4. Inventory lost or damaged items. Your insurance agency will require a list of items damaged or lost in order to calculate how much to pay out. Even if an item is damaged, hold on to it until you create a list, take photos and receive a visit from a claims adjuster.
  5. File a claim. Insurance providers are required to send claim forms in a timely manner after you report loss or damage. Fill these out as soon as possible, taking care to provide the correct information and supporting documents to ensure a timely response.
  6. Keep up with receipts. If your property becomes uninhabitable, keep records of any short-term lodging, meals and covered expenses so you can be reimbursed. 

Renters insurance replacement cost

A renters insurance replacement cost policy provides added protection when you need to file a claim for stolen or damaged belongings. Instead of receiving compensation based on the depreciated value of your items, which may not cover the full cost of replacement, this policy allows you to replace them with new equivalents. This feature is particularly valuable for rapidly depreciating items like electronics and computers.

Here’s a quick overview of how it works:

  1. Initial Payment: Initially, you’ll receive a check based on the actual cash value of your lost or damaged items.
  2. Replacement Process: To claim the replacement cost part of the settlement, you’ll need to prove that you’ve replaced the items. Your insurance company will set a timeframe for this process, typically a few months, depending on your policy and insurer.
  3. Submit Receipts: You’ll need to submit receipts for the replaced items, showing that you’ve purchased new ones.
  4. Additional Payment: Once you’ve provided proof of replacement, you’ll receive another check to cover the difference between the actual cash value and the replacement cost.

Despite the slight increase in cost (usually around 10% more than an actual cash value policy), many renters find that the benefits of a replacement cost policy are well worth it. This added protection ensures you can replace your belongings with new ones, providing peace of mind in case you ever need to make a claim.

Do I need renters insurance?

While not mandated by law, you may need renters insurance if your landlord requires it in the lease. Even if your landlord doesn’t require it, renters insurance is worth considering. It’s one of the cheapest types of property insurance and could save you thousands of dollars if your belongings are stolen or destroyed by a problem covered by your policy, like a fire.

The average cost of renters insurance is $173 per year — or about $14 per month — for $15,000 in personal property coverage and $100,000 in liability coverage, with a $2,000 deductible. If you want $30,000 in personal property coverage, you’ll pay an average of $227 per year, or $19 per month. 

Renters insurance coverage FAQs

A standard renters insurance policy includes three types of protection: personal property, loss of use and personal liability insurance (medical payments to others coverage falls under the “liability” section).

Renters insurance pays out if your belongings are damaged by a problem outlined in your policy, like a fire, or when you have a qualifying liability claim, like your dog bites someone who then requires medical attention. 

When you file a renters insurance claim for personal property damage and the claim is approved, your deductible will be subtracted and you’ll be reimbursed with a claims check for your destroyed belongings. If your apartment or house is uninhabitable, your renters insurance may send you a check for additional living expenses, or reimburse you after. Liability claims do not require a deductible.

If you’re a dependent attending college and living in an on-campus apartment or dorm, your parents’ homeowners or renters insurance generally covers your belongings. 

If you live in off-campus accommodation or are not in higher education, you typically need to take out your own renters insurance policy. 

This can vary across insurers, so confirm the details of your parents’ policy before buying your own.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Katy McWhirter has written professionally since 2012, garnering bylines in publications such as U.S. News & World Report, MoneyGeek, and Noodle. She is also the author of three historical biographies, including a forthcoming Spring 2023 publication. She lives in Louisville with her husband and three very bad cats.

Kara McGinley

BLUEPRINT

Kara McGinley is deputy editor of insurance at USA TODAY Blueprint and a licensed home insurance expert. Previously, she was a senior editor at Policygenius, where she specialized in homeowners and renters insurance. Her work and insights have been featured in MSN, Lifehacker, Kiplinger, PropertyCasualty360 and more.