Does Renters Insurance Cover Eviction?

Does Renters Insurance Cover Eviction?

Renters insurance is meant to safeguard your belongings and provide temporary housing after certain unexpected events, not to resolve landlord-tenant disputes.

In other words, renters insurance generally won't cover eviction because it's not considered an accident or disaster.

If you miss rent payments, violate lease terms or are asked to leave for other non-covered reasons, your insurance company won't step in to help with legal fees, missed rent or moving costs.

Learn more: What Does Renters Insurance Cover?

What Is Loss of Use Coverage?

While renters insurance won't cover an eviction, it may help if you're forced to leave your home due to a covered event, such as a fire, major water damage or another peril listed in your policy.

In these cases, your policy's loss of use coverage—also called additional living expenses coverage—can help pay for hotel stays, temporary rentals, meals and other necessary costs while your rental is being repaired or rebuilt.

Loss of use coverage is typically included in a standard renters insurance policy, so you don't have to ask to add it in.

However, it only covers the excess beyond what you'd normally spend. So, for example, if you normally spend $200 per week on groceries, and now you're spending $350 per week on dining and takeout, it'll only cover the $150 difference.

Learn more: How Much Does Renters Insurance Cost?

How to Avoid Eviction

Facing eviction can be financially devastating and emotionally overwhelming. The thought of losing your home, along with the stress of legal fees, moving costs and instability, can feel paralyzing.

While renters insurance can't protect you from eviction, these proactive steps might help you stay in your home or at least buy you more time to find stability:

• Talk to your landlord. Start with an honest conversation. If you're behind on rent or dealing with unexpected financial hardship, your landlord may be open to creating a temporary payment plan, deferring late fees or allowing a short grace period. Showing a willingness to work together can help build trust and avoid immediate legal action.
• Seek legal advice. Not all evictions are valid. In some cases, you might have legal grounds to fight the eviction or delay the process. That's especially true if your landlord didn't follow proper notice procedures or is retaliating against you. Reach out to local tenant advocacy groups, housing courts or free legal aid clinics to learn your rights and next steps.
• Explore financial assistance resources. Emergency financial assistance is available in many states and cities. Local governments, nonprofits and religious organizations often offer one-time grants, utility assistance or vouchers that can help you catch up on rent and avoid eviction. Call 211 to get more details about resources in your area.
• Know your rights. Landlord-tenant laws differ depending on your state, but many offer protections like required notice periods, rent grace periods and even eviction moratoriums during specific emergencies. Learn the rules in your area so you can spot illegal practices or take advantage of protections that may apply to your situation.
• Keep records. Maintain a paper trail of all rent payments, written communication with your landlord and any complaints or maintenance issues. This documentation can be critical if you need to defend yourself in court or challenge an unlawful eviction. Organized records can often make the difference between staying housed or losing your case.

Learn more: Is Renters Insurance Required?

The Bottom Line

Renters insurance is great for protecting your stuff, but it won't cover legal evictions or help you stay in your home. If you're worried about eviction, your best bet is to take proactive steps and get help from local organizations.

You can also work to use your rent payments to help build your credit score. Experian Boost^®ø is a free feature that allows you to add eligible bills to your Experian credit file, including rent, cellphone, utilities, insurance and even some streaming subscriptions.