Your landlord already has insurance that covers the rental property, right? Doesn’t that technically mean you already have insurance, too?
The insurance your landlord has doesn’t cover any of your personal property. If something happens while you’re living in the apartment, such as a fire or water damage, you would have to pay for any related expenses out of pocket, which can be expensive.
On top of that, many landlords require you to have rental insurance before you move into the property. Even if you wanted to risk living without this insurance, you may not be able to if you want to reside in an apartment.
So what does rental insurance cover exactly? We’ve put together this guide to help you answer that question. Make sure you keep reading below!
What Does Rental Insurance Cover?
At its bare minimum, your rental insurance policy will protect you if something unexpected happens to your personal belongings. However, rental insurance coverage takes care of more than just your things. You can go here to get a deeper dive into the specifics of rental insurance and why you need it.
Anything you own, whether it is inside or outside of your apartment, is considered personal property. If something happens to your personal property, you can make a claim with your insurance, and the insurance company will reimburse you for the damage. This will only happen, though, if the damage your property withstood is covered by your policy.
Rental insurance covers the following:
- Smoke damage
- Water damage (from leaking appliances, plumbing issues, or weather)
- Falling objects
Keep in mind, most rental insurance policies don’t include earthquake or flood damage. If your items are damaged from either of these circumstances, you won’t be able to get reimbursement.
What happens if someone accidentally hurts themselves on your property? Are you responsible for their medical bills? If you have rental insurance, the answer to that question is no.
Rental insurance will cover the cost of personal liability or damages should you become involved in a lawsuit. While this probably won’t happen, it can take a major load off your shoulders if it does.
Additional Living Expenses
In some cases, you might not be able to continue living in your apartment in the event of a fire, water damage, explosion, etc. If that happens, rental insurance will cover the cost of living in a hotel while you repair your apartment or find a new place to live.
Additional living expenses may cover other things as well, so it’s important to check your policy to find out what you can expect if something goes wrong in the future.
Understanding Your Rental Insurance
So what does rental insurance cover?
In short, it covers personal property damage, personal liability, and additional living expenses. However, to fully understand your insurance policy, you should take a look at the specifics.
Want to learn more helpful tips for renters? Make sure you take a look at the rest of our blog!