Renters Insurance FAQs
Apartment or Home rental tenant needs
Do you need Renter's Insurance? Here are some FAQs that might help you make a decision.
Why should I get renters insurance? I don't own very much.
Doesn't my landlord's insurance covers me?
What are renter's insurance deductibles?
Are natural disasters like hurricanes/floods/earthquakes covered?
What if my property is stolen?
Are expensive items such as jewelry, computers, etc covered?
Are cash and credit cards covered?
Are items in my garage or in a storage unit covered?
Are fine arts covered?
Is damage due to leaking waterbeds covered?
Is my roommate covered under my policy?
I'm a student. Does my parents' homeowners policy cover me?
What happens to my renter's insurance coverage if I move?
I don't own very much - why would I get renters insurance?
Take a look around you, and then add up the value of your TV, stereo, furniture, clothing and other items.
Would it be difficult for you to replace them without insurance? Make a list, room by room of your personal property to estimate the total value of your possessions. Keep track with our Property Inventory. Many people can quickly get to over $20,000 in value.
Plus, even if you feel your personal property is not worth enough to insure, having liability coverage may well make it worth having renter's insurance.
Even if you think "it won't happen to me," paying the price of one dinner out a month might save you from a big, expensive hassle rather than a cheap replacement shopping spree.
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Doesn't my landlord's insurance covers me?
In most cases, your landlord's insurance covers only structural damage to the building itself not caused by a tenant. If you leave the tub running, you may be liable for the whole mess both in your apartment and the one downstairs. If your building burns down, your landlord's insurance should cover repairs, but only to the building, not to the possessions of tenants.
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What are renter's insurance deductibles?
A deductible is the amount you will have to pay out of your own pocket before your renters insurance kicks in. For example, if you have a $500 deductible and fire damages your apartment furniture in the amount of $2,000 the insurance company would pay $1,500 ($2,000 less your $500 deductible).
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Are natural disasters like hurricanes/floods/earthquakes covered?
Hurricanes
Yes, windstorm is covered, however coverage for a resulting flood may be excluded.
Floods
No, most renters insurance policies do not cover damage caused by flood. The National Flood Insurance Program (NFIP) offers flood coverage in some areas, for contents only.
Before you call an insurance company, the NFIP recommends that you call your landlord to find out the flood zone of the property you are renting.
Earthquakes
Not in standard renters insurance policies. In most states, policyholders must purchase optional earthquake coverage for a nominal additional premium.
Check your policy for coverage and limits.
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What if my property is stolen?
Theft, burglary or robbery claims should always be immediately reported to the police. Some policies provide coverage for stolen property only if there has been forcible entry into a locked home or apartment.
Most policies have limited coverage on certain types of property loss caused by theft. Check your policy to be aware if you are covered or not.
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Are expensive items such as jewelry, computers, etc covered?
Renters insurance policies will generally cover this type of property for its Actual Cash Value, the value of the property at the time of loss and not full replacement value. However, each policy typically provides a limit for how much they will cover. Other policies may apply limits if burglary or theft causes the loss.
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Are cash and credit cards covered?
Renter's insurance usually provides an extension of coverage for limited amounts of cash. Some companies will increase the amount for an additional premium. Check your policy for coverage and limits.
Your renters insurance policy may pay up to a specific amount (i.e., $250) for the legal obligation of any insured to pay because of the theft or unauthorized use of credit cards issued to or registered in any insured's name.
Some states have laws that limit your liability to a specific dollar amount per card. Check your policy for coverage and limits.
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Are items in my garage or in a storage unit covered?
Renters insurance usually provides an extension of coverage for property away from your primary residence location. Check your policy for coverage and limits.
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Are fine arts covered?
Most basic renter's policies will cover fine arts as personal property, subject to the basic perils and deductible on your policy. If you own fine arts, you may want to consider adding an endorsement to your policy providing specific "all risk" coverage on scheduled items for a nominal additional premium. For example, if you have a crystal vase that is accidentally broken, your basic policy would not provide coverage, because breakage is not a named peril. If you have added a fine arts endorsement (including breakage) the vase would be covered.
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Is damage due to leaking waterbeds covered?
This depends on your own policy and your lease with your landlord. Damage to your personal property from a leaking waterbed is usually only covered when the leak results from one of the named perils like fire or vandalism.
Many lease agreements specifically state that the owner of a waterbed is responsible for damage to the rental property resulting from leaking. It's important that you check your lease if you own one, then talk to your insurance company.
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Is my roommate covered under my policy?
Probably not, unless that person is a named insured or a relative. If you have a roommate, check with your insurance company about coverage for him or her.
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I'm a student. Does my parents' homeowners policy cover me?
Maybe. If you are a dependent away at school, your parents' homeowners insurance policy may provide limited coverage for your personal property you have with you. However, it would still be subject to things like deductibles, etc. Ask your parents to check with their insurance company.
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What happens to my renter's insurance coverage if I move?
In most cases, you can simply provide your new address and some information about the construction of the building at your new location if you move within the state in which you are currently insured.
Some insurance companies may not be able to continue your policy if you are moving to another state.
Renter's insurance policies will generally recognize your new address as an "insured location" for some limited time (i.e., 30 days) from the time you begin your move. However, if the property is stolen or damaged in transit from one location to the other, the amount of coverage may be limited to a small percentage of the total coverage. Check with your insurance company before you start your move.
