Leases and deposits
What does renters insurance actually cover?
Updated By the Housing Rocket moderators
Short answer
A standard renters policy covers three things: your belongings if they are stolen or damaged by covered events like fire or burst pipes, your liability if you accidentally injure someone or damage their property, and extra living costs if your home becomes unlivable after a covered loss. Floods and earthquakes are usually excluded.
- Personal property: furniture, clothes, electronics and other belongings, often including items stolen from your car or while traveling
- Liability: legal costs and damages if a guest trips in your apartment or a leak you caused damages a neighbor's unit
- Loss of use: hotel, meals and other extra costs while repairs are made after a covered event
Common gaps: flood and earthquake need separate coverage, and jewelry, bikes, cameras or instruments may have low limits unless you add them to the policy. Damage from pests, mold and ordinary wear usually isn't covered.
Roommates are a frequent surprise. A policy normally covers only the people named on it and relatives who live with them. Your roommate's belongings aren't covered by your policy, so each of you should have your own, or ask the insurer about adding them by name. Some insurers allow it and some don't.
If you ever file a claim, photos or a quick video of your belongings and receipts for big purchases make it much easier. Keep them in cloud storage, not only on a laptop that could be stolen along with everything else.
Want the whole picture? Read Renting Your First Apartment: Applications, Leases and Move-in Costs.