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Renter’s Insurance 101: What It Covers and What It Doesn’t

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According to Nationwide Insurance’s 2014 survey, 56% of young adult renters don’t have renter’s insurance. These renters are putting their homes and belongings at risk. 75% of people without renter’s insurance don’t even know that they can get coverage for as little as $15 per month.

With that said, let’s take a look at what Amistad Insurance Services says renter’s insurance covers and what it does not.

What Renter’s Insurance Covers

Personal Property

Renter’s insurance covers your personal belongings from loss due to theft, fire, explosions, vandalism, power surges, and other events that are out of your control. A comprehensive policy will cover costs to replace any furniture, jewelry, appliances, electronics, and clothes that have been destroyed, damaged, lost, or stolen.

You can choose between actual cash value coverage or replacement cost coverage. With an actual cash value policy, the amount given to you will be equal to the replacement cost minus depreciation of the lost property. Meanwhile, a replacement cost coverage will provide a payout that is large enough to buy a new replacement at full retail price.

Renter’s insurance can also cover property damage on others, such as when a broken pipe in your apartment flooded your neighbor’s residence. Your renter’s insurance policy will cover damages to their property.


A comprehensive renter’s insurance policy will have liability coverage that will pay for bodily injury and property damage caused by negligence. If someone slips, falls, or gets injured on your premises, your policy should cover their injuries both with and without a lawsuit being involved.

Loss of Use

Also known as temporary living expense coverage, loss of use coverage takes care of your living expenses in case your home becomes uninhabitable. It can compensate you for everything from hotel bills to grocery costs.

Additional Coverage

  • Credit card/bank forgery coverage – This will protect against monetary fraud attempts, like when a thief steals your credit card during a break-in.
  • Other people’s property ­­– This will replace not only your property but others’ as well.
  • Medical payments to others – This will cover the medical bills of anyone who gets injured in your home.
  • Items stored elsewhere – This will cover items that have been damaged off-site. It may also protect personal property stolen from your car or a storage facility.

What Renter’s Insurance Does Not Cover

Natural Disasters

Damage caused by flooding, earthquakes, and even sinkholes aren’t covered by your renter’s insurance. If you live near a fault line, a flood zone, or a region prone to major storms, then you should consider getting additional coverage.

High-Value Items

Vintage car decorated with flowers

Antiques, art, jewelry, vintage family heirlooms, premium appliances, and other expensive valuables may not be covered under your renter’s insurance policy. This is because coverage limits are usually $2,500 for electronic items and $1,500 for jewelry. You may need to purchase additional coverage called riders to include pricier items in your policy.

Without renter’s insurance, people stand to lose thousands of dollars, in future expenses and damages. It is a cost-effective, affordable investment that can keep you and your belongings safe and protected.

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