Take a look at your things. We mean, really look. If you’re like many people, you probably have a lot more stuff than you realize at first glance. As if worrying about paying your rent on time weren’t enough, you should consider how you’d replace your things in the event something goes wrong.
You’re probably thinking to yourself, “What does renter’s insurance not cover?” Understanding what a renter’s insurance policy covers is the first step to choosing the right one for you.
So… what is renter’s insurance?
In the event that your possessions get damaged, or there’s a robbery, you want to make sure you’re protected. That’s where renter’s insurance comes in. This basic policy will cover your losses.
It’s important that you be able to show proof of ownership and the cost of replacing the items you claim. You should also know what your policy won’t cover before you’re in a bad situation and already stressed.
Property Damage
Renter’s insurance protects your stuff. What it doesn’t cover is the building your stuff is in. Your landlord’s insurance should offer a layer of protection for the property. Check with your landlord to make sure they’re investing in the right coverage for the building you live in. Think leaky roofs and things of that nature — your landlord should keep a dry roof over your head! Make sure they have the insurance to cover property damage.
Natural Disasters
Speaking of dry roofs, common natural disasters mark another thing to keep in mind. renter’s insurance doesn’t generally cover items if they get damaged in natural disasters. If sinkholes, wildfires, earthquakes, or, yes, even floods are common in the place where you’re moving, you’ll want to put additional insurance on your checklist of things to do when you’re getting ready to rent. It’s always a good idea to check what types of natural disasters your renter’s insurance policy does or does not cover so you can invest in additional insurance if needed.
Accidental Injury
Your basic renter’s insurance policy doesn’t cover accidental injuries. If you think you might get into a situation where you need extra protection (maybe you’re throwing parties and having a variety of people over often), you’ll want to check carefully to see if your renter’s insurance includes liability insurance. If it doesn’t, you can get liability insurance added on. This extra bit of coverage will protect you if there’s an accident and someone gets injured at your apartment. It’ll also cover legal fees if the injured person decides to sue you.
Damage from Pests
The prospect of pests is annoying enough. To make matters worse, renter’s insurance won’t cover damage these creatures do.
The cost of an exterminator to get rid of mice isn’t covered, either. Start thinking of bed bugs and other pests as a potential liability, too. Though you can’t invest in a policy to cover this, you should invest in actions to prevent an infestation before it even starts.
Expensive Items
You’ll want to invest in more insurance if you’re the proud owner of high-priced items like jewelry, artwork, or collector’s items. A basic renter’s insurance policy won’t cover anything of significant value.
If you think one or more of your possessions might fall into this category, don’t go by your estimate of that item’s value. Instead, get your belongings professionally appraised. You may need to go for a separate insurance policy to protect your particularly valuable belongings.
Roommates
You were smart, and you bought a renter’s insurance policy before moving in. But after moving in, something happened to your roommate’s belongings. Does your insurance cover them?
Unfortunately, no. You can’t help your roommate out if their stuff gets stolen, lost, or damaged. The one caveat that can change the equation, in this case, is if you’re related to your roommate by marriage, adoption, or blood. If so, they’re covered.
If you’re planning on living with people you aren’t related to, you might want to talk to your roommates before signing your lease to suggest they invest in their own renter’s insurance policies or decide to go in on a joint renter’s insurance policy together.
Car
This is another category that can get a little tricky. If someone grabs stuff you have inside your vehicle, renter’s insurance does help with that. If you leave your laptop in your car and someone nabs it, your renter’s insurance will cover that.
However, your policy won’t protect you if the car gets damaged or stolen. You’ll need auto insurance if someone steals the vehicle itself. “Motor vehicles” typically fall outside the scope of renter’s insurance. In other words, if you have a scooter or an electric bike, renter’s insurance won’t protect that either.
Undocumented Belongings
Receipts, receipts, receipts. That’s the key when it comes to renter’s insurance. If you don’t have proof that you own an item — or you don’t have proof of its value — you might back yourself into a corner. You’re almost always going to have to provide a receipt when you put in an insurance claim. Don’t have documentation that your laptop really is yours? You could be out of luck.
Fortunately, you can protect yourself from this situation. First, keep those receipts! Receipts will show that you’re the owner of the item and provide proof of the item’s value. Take photos of your documents and items on your phone. This added layer of proof could come in handy if you need to file a claim.
Is renter’s insurance worth it?
While it’s important to be smart and make yourself aware of what your policy won’t cover, don’t let the limitations of renter’s insurance scare you off. On average, renter’s insurance doesn’t cost that much. You can find policies starting at $5 or $10 per month. That small investment will go a long way if you need it.
Once you understand what your renter’s insurance does and does not cover, you’re well on your way to protecting yourself whether you’re away on vacation or just out to eat down the street. Give yourself peace of mind by protecting your belongings.
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