What Does Renters Insurance Not Cover?

What Does Renters Insurance Cover?

Renters insurance is designed to protect tenants from losses and liability after an unexpected event, like theft or fire. Depending on your insurer and the policy you choose, you may be reimbursed based on either the actual cash value or the replacement cost of your belongings.

Renters insurance generally includes coverage for:

• Personal property: Items that are stolen, damaged or destroyed in a covered event.
• Liability protection: Legal costs and damages for guest injuries or property damage.
• Medical payments to others: Coverage for medical bills if a guest is injured in your rental.
• Additional living expenses: Temporary housing and extra costs of eating out, boarding pets or commuting to work if your rental unit is temporarily unlivable.

Learn more: What Does Renters Insurance Cover

What Does Renters Insurance Not Cover?

While renters insurance provides a wide range of protection, there are several common exclusions.

Structural Damage to the Building

Renters insurance only protects your personal belongings, not the actual structure of the home or apartment you live in. If a storm damages the roof or there's a plumbing leak that damages the walls, that's typically your landlord's responsibility and is covered by their property insurance.

Flood and Earthquake Damage

Natural disasters such as floods and earthquakes are usually excluded from standard renters insurance policies. If you live in an area with these risks, you may need to purchase separate coverage to protect your property.

Common exclusions for natural disasters include:

• Floods
• Earthquakes
• Sinkholes
• Landslides
• Erosion

Pest Infestations

Damage from pests like bedbugs, termites or rodents is usually not covered by renters insurance. This includes the cost to exterminate the pests and to repair the damage they caused. Insurers often view pest control as a maintenance issue that falls under the landlord's responsibility. Notify your landlord right away if you find evidence of pests.

Mold and Mildew Damage

Standard policies generally don't provide coverage for mold or mildew remediation or repair. These issues usually develop over time and are preventable. Insurance also won't cover damage from neglect or failing to maintain the unit, such as leaving a leak unrepaired or storing items in damp conditions. Depending on your policy, damage to your personal property caused by mold and mildew may be covered.

High-Value Items

While renters insurance covers personal property, high-value items may only be covered up to a certain limit, which may be lower than the item's actual cash value. For instance, a policy may only provide coverage for up to $1,000 of jewelry losses even if you have a piece that's worth more.

Items commonly subject to limits include:

• Jewelry or watches
• Fine art
• Cash
• Firearms
• Electronics
• Musical instruments
• Collectibles

Your Car

Renters insurance doesn't cover cars, motorcycles or motorized vehicles like a side-by-side or go-cart, even if they're parked in your driveway or garage. Coverage for these items falls under your auto insurance policy. Property inside your vehicle may be covered depending on the situation and your coverage limits.

Business Inventory

If you run a home-based business, you may need separate business insurance or a home business endorsement to cover inventory for business-related equipment, inventory or liability. Some property, like a laptop computer, may not be covered or may be subject to limitations if it's primarily used for business purposes.

Roommate's Belongings

Renters insurance policy typically only covers your possessions. If you live with roommates, their items aren't automatically covered by your policy and vice versa. Some policies may cover property of a spouse or dependent children, but roommates who aren't related to you usually need their own policy for full protection.

Learn more: Does Each Tenant Need Renters Insurance?

How to Get More Coverage

If your current policy doesn't provide the level of protection you need, consider these options:

• Increase your policy limits. Your policy comes with a maximum coverage limit. If you need more than that, talk to your insurer about boosting the total coverage amount to ensure your belongings are fully protected.
• Add riders to your policy. Look for coverage for specific items like jewelry, equipment or collectibles that exceed category limits. That way, you can replace these items after a loss.
• Purchase separate disaster coverage. Flood, earthquake or home-based business insurance may be necessary depending on your lifestyle and where you live.

Learn more: How Much Renters Insurance Do I Need?

The Bottom Line

Renters insurance can offer peace of mind, but it doesn't protect everything. Review your policy carefully to understand your policy so that you're better prepared for the unexpected.

In some states, insurers may use credit-based insurance scores to set your insurance rates. Check your credit scores for free to see where you stand before shopping around.