Renters insurance (often called tenants insurance) is a policy that provides renters with a number of different benefits. While the property owners will insure the physical dwelling, this renters insurance often covers the tenant’s personal property within that dwelling. While many apartments or buildings might require you to have renters insurance, others won’t.
Either way, it is a great idea to purchase it for a number of reasons. If you’re currently living in New York City, one of the most expensive cities in the United States, you might not want to spend more money than you have to. First of all, renters insurance is very affordable. In fact, it normally will only cost you about $20 a month, which is a small price to pay for insuring all of your personal belongings. Next, the policies cover everything from your clothing, to your electronics and everything in between, which gives you a ton of peace of mind knowing that everything you have will be covered. Think about everything you own. It likely holds a lot of value. The best way to protect those belongings is to insure them and renters insurance is the smartest way to do that as a renter.
So now that you know that it is incredibly important to have renters insurance as a tenant, you may be wondering what sorts of things are included and which are not. We’ve included a couple different things that renters insurance will cover, and a few more that it won’t. We’ve also listed a few things that might be covered, which will depend on the specific type of insurance you get and which provider you get it from. Note that each plan from each provider is different, so be sure to read carefully what is included in your specific plan to make sure you know. Also, before a claim is covered by your insurance, you will have had to pay your deductible.
1. Theft IS Covered
If someone manages to break into your apartment and steal things, renters insurance will cover anything stolen and give you money to replace it. Even if you are traveling or on vacation then you items are stolen, it’s covered. If you have no renters insurance, you will be out of luck when it comes to being reimbursed for your stuff.
2. Car Theft or Damage is NOT Covered
While a car is technically a piece of personal property, car theft is not covered by renters insurance. Despite this fact, any person property that is stolen from the car is covered. For example, if your car is stolen with your laptop inside of it, your laptop would be covered but not the car itself. Something like a bicycle is covered, however, as it is considered a piece of your personal property.
3. Mold Damage MIGHT Be Covered
Depending where you live and which company you get your renters insurance from will determine whether damage to property or the structure itself caused by mold is covered. However, even if you are covered for mold in your policy, that doesn’t mean you don’t have to worry about it and can leave it alone if you notice it. As an insured renter, you must still make an effort to stop the mold as soon as you notice it and also let your landlord know. The owner should also have a hand in getting rid of the mold.
4. Water and Fire Damage IS Covered
Accidents happen, and two of the most devastating accidents in terms of property damage are water leaks and fires. Whether a pipe leaks, a water sprinkler goes off or your stove malfunctions, there are a ton of situations that can lead to water and fire damaging your property. Thankfully, most renters insurance covers this so you don’t have to fret. However, in the case for things such as an earthquake or a flood, renters insurance will not cover you. There is additional insurance available for these things if you live in an area that puts you at risk for them.
5. Pet Damage is NOT Covered
While many might consider a pet part of the family, they are not covered by your renters insurance. While some may offer partial coverage, that is usually very dependent on certain situations and scenarios. Most of the time, you are responsible for whatever your pet does and whatever happens to them. So if you have a pet that likes to rip up furniture or flooring, you might be in for a big headache, even with renters insurance.
6. Personal Injuries MIGHT Be Covered
If you just have insurance on the contents of your apartment, any visitor that is injured on your property will likely not be covered. However, if your plan comes with liability insurance (or you purchase this in addition to your standard renters insurance), your insurance will pay the legal fees and damages you would have been responsible for.
7. Additional Living Expenses ARE Covered
If your home becomes uninhabitable due to a covered event (such as water or gas leaks, fire, vandalism or more, most renters insurance will cover the costs of living somewhere else temporarily. It will also often include things like food and more. Each policy is different, so make sure how long it will cover you additional living expenses and any other information you should know.
8. Bed Bugs of Other Infestations are NOT Covered
While this may be surprising to you, renters insurance doesn’t cover the possible infestation of vermin like mice and bedbugs. That is because discovering and cleaning up a vermin infestation is considered a maintenance expense. Also, sometimes the infestation can be caused by the tenant themselves due to an unsanitary living style or other factors.
Looking for articles on other important issues you should check or have in mind before moving into a new place? Check out 10 Things to Check and Inspect Before Renting an Apartment or Top 9 Questions to Ask When Viewing an Apartment.
