What Does Renters Insurance Cover?

Personal property

Tenants often have furniture, clothing, jewelry, and electronics with replacement values in the tens of thousands of dollars. With an increasing number of people working from home (WFH), these valuables also likely include technology equipment that is necessary for them to earn a living.

The personal property clause of the renter's insurance policy typically covers theft. Thieves target high-priced property that's easy to grab, like TVs, computers, gaming equipment, and jewelry boxes. Your standard limits will cover electronics, but an additional rider may be required for jewelry.

Liability

If a guest is injured and incurs medical expenses while visiting, the tenants could be responsible. Tenants who have pets, especially dogs, could be at even greater risk. A dog bite that sends a guest to the emergency room could cost thousands of dollars. 

The liability portion of a tenant insurance policy also covers damage to the landlord’s property. If the tenants break a window, it’s typically covered. If the tenants' pet urinates inside the rental property and the carpets must be replaced, liability insurance might cover the new carpet installation. Some insurance policies will not cover pets, others will with exclusions based on breed and coverage limits.

Additional living expenses

Unexpected events such as fire, flooding, or tornado could displace tenants for a lengthy amount of time. Tenant insurance policies cover additional living expenses to move into a hotel or short-term rental until a permanent solution can be found. They often also cover meals, and related relocation expenses. 

Conclusion

Although renters insurance policies have exclusions, they offer stability in the face of an expensive catastrophe. For as little as $15 per month, tenants can bind a policy that gives everyone peace of mind.

Often, landlords and property managers simply need to educate tenants on the value and affordability of tenant insurance. This conversation builds trust and authority. In the event of a disaster, renters insurance helps everyone get back to normal.

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