What does renters insurance cover? | Pyramis Company

What does renters insurance cover?


You’ve heard the dreaded renter panic stories. Valuables stolen after a home break-in. A leaking toilet upstairs causes a ceiling to collapse and ruins your personal belongings. A broken water line to the ice maker floods the entire home, leaving you stranded without a place to live. If this sounds familiar thinking of a friend or family member who suffered through a similar narrative, you know that insurance is a necessity no matter whether you rent or own your home.

Renters insurance doesn’t cover everything.

Some things that it may not cover are:

  • Bedbug infestation.
  • Don’t expect your roommate’s policy to cover your things.
  • Earthquakes
  • Flood (natural)
  • Damage done to your property by a guest or visitor.
  • Waterbeds

What does renters insurance cover?

  1. Renters insurance can cover dog bites. Most renters insurance policies come with a minimum of $100,000 in personal liability protection and can easily be increased to $300,000 and up for a relatively small increase in premium. This would cover any injuries incurred, as well as the cost of legal defense in the event of a lawsuit.
  2. Most renters insurance can cover damage to belongings stored off-site. Check with your carrier, most renters insurance policies will cover up to 10% of your contents coverage off-premises.
  3. Renters insurance can cover travel. Let’s say your luggage is stolen while in Las Vegas. Your renters insurance may cover it. As always, check with your carrier.
  4. Renters insurance can cover relocation.  Your renters insurance policy won’t cover the costs of a cross-country move, but if you have to relocate due to fire, water damage, or any other claim that makes your rented home unlivable, you should be in good shape.
  5. Renters insurance can cover theft from your vehicle.
  6. Renters insurance can cover the food in your refrigerator.  Food spoiled because of a power outage or failed appliance should be covered as personal property.
  7. Break a friend’s window? Renter’s insurance covers that too.
  8. Smoke or fire damage (Only if accidental.)
  9. Vandalism
  10. Personal property stolen at locations outside your rental property.
  11. It covers the cost of injuries sustained by guests in your rental .

Despite the extensive coverage, many renters still go without renter’s insurance. A poll conducted by the Insurance Information Institute found that only 37% of renters carried a renter’s insurance policy. Compare that with 95% of homeowning respondents who carried a homeowner’s insurance policy.

I know I’m pushing pretty hard on renter’s insurance, but I do want to point out that renter’s insurance isn’t a complete panacea.


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