What a Renter’s Insurance Policy Does (and Doesn’t) Cover

Although tenants are not required to have homeowner’s insurance when living in a rented apartment or house, landlords sometimes require tenants to invest in a different type of policy: renter’s insurance. A landlord’s policy covers damage to the home or building itself, but renter’s insurance serves as protection for a tenant’s belongings. Even tenants who don’t own many valuables can benefit from carrying renter’s insurance. It very inexpensive, and it also covers much more than just basic possessions. This is what renters should—and shouldn’t—expect from their renter’s insurance policies.

What Renter’s Insurance Covers

Renter’s insurance covers the contents of the tenant’s home or apartment. Many policies also cover belongings in the policyholder’s car when traveling. (It’s important to note that renter’s insurance does not cover the car itself, as that’s what auto insurance is for.) Most policies also cover loss of use, so that if something happens to the rented home, the tenant will be able to pay for housing somewhere else. That alone makes renter’s insurance worth the nominal investment. Another common component of the policy is liability coverage to give renters financial protection should they be sued for injuries or damages that occur at the home. However, those coverage amounts may be limited, with additional coverage often available for purchase.

What Renter’s Insurance Doesn’t Cover

It’s important to know not only what renter’s insurance covers, but also what it doesn’t cover. Natural disasters like floods and earthquakes are usually not included, nor are certain issues like bursting pipes. Coverage for these risks can often be added for a separate fee. These add-ons aren’t necessary for every renter, but those at high risk—like tenants in Oregon, an earthquake-prone state—might benefit from the coverage. Additionally, some insurance companies require the purchase of additional insurance to cover a tenant’s most expensive valuables, such as high-end jewelry and electronics.

Shop for Renter’s Insurance Today

It’s important not just to carry renter’s insurance, but to understand what the policy covers to ensure your belongings carry adequate financial protection. Focus1 Insurance Group can help you figure out what level of coverage you need, and our team will then shop around for you to find the best deal on coverage. Call Focus1 Insurance Group at 541-772-3120 or request your free quote now!