What Coverages Do Renters Policies Provide?
Renters policies generally include three primary coverages. They are:
- Personal Property Coverage, which may provide protection for personal possessions (e.g. furniture, clothing, and electronics)
- Liability Coverage, which might help a policyholder defend themselves from a lawsuit that accuses them of causing injury or property damage
- Additional Living Expenses Coverage, which can help pay for alternative accommodations if a covered incident renders a rented unit uninhabitable
(Exact coverages can vary from policy to policy, and some policies may not include all of these protections.)
As is the case with most homeowners policies, many renters policies include limits on how much protection they provide for certain personal possessions. For instance, a policy might limit how much protection it provides for furs, computers, firearms, or jewelry. Renters who have high-value possessions should carefully review their renters policy’s personal property coverage to make sure all of their belongings are fully insured.
Do Renters Policies Provide Coverage for Buildings?
The liability coverage that most renters policies have may provide protection if a tenant is found responsible for damaging or destroying the building they live in. For example, a renter who started a fire that burned down the house they lease might be held responsible for the property damage — and they may have liability protection through their renters policy’s liability coverage.
Most renters policies don’t include structural coverage for buildings, though. In other words, renters policies typically don’t protect buildings that policyholders lease from damage that isn’t caused by the policyholder themselves.