Always wondered what is and isn't covered by renters insurance? Check out these five real-life scenarios to get an idea. Keep in mind that renters insurance works like your car insurance: you decide how much coverage to buy and then pay a certain amount out of pocket each time you use it.
Scenario #1: A toilet in the apartment above yours overflows. It’s fixed by the time you get home from work, but by that point, water’s already run down your living room wall, right onto your laptop, TV, and TV stand. All three are ruined—about a $2,000 loss.
Would a renters policy cover it?
Yes. If the tenant who lives above you doesn’t have renters insurance, then your policy would help cover the cost to replace your things. Depending on what coverage you have, you’ll either get reimbursed for what the damaged items are worth, or how much it costs to replace them (usually a higher amount).
Scenario #2: A few friends come over to watch the game, and on the way out, one of them trips and twists his ankle. Since it’s late on a Saturday, you take him to the emergency room. He’s got health insurance, but still owes $530 out of pocket for the visit and MRI.
Would a renters policy cover it?
Yes. Renters insurance will help pay for medical bills if someone gets hurt in your apartment. And, in an extreme case—where the injuries are extensive, and the person files a lawsuit—your renters policy will help cover legal fees, too.
Scenario #3: You host a Halloween party and the next day, you realize that your new $629 iPad™ was stolen—and your $175 mp3 player, too.
Would a renters policy cover it?
Yes. Renters insurance helps pay to replace stolen items. Like we mentioned in scenario #1, you’ll either get reimbursed for what the items are worth, or what it would cost to replace them.
Scenario #4: You run a quick errand, leaving your gym bag (with your smart phone in it) on your passenger seat. When you get back, your window is smashed, and the bag is gone.
Would a renters policy cover it?
Yes. Your auto insurance policy covers the broken window, and your renters insurance helps pay to replace your property. Just like scenarios #1 and 3, this is another case where the more coverage you have, the more you’ll get reimbursed.
Scenario #5: You’re waiting for water to boil when you smell smoke. You run out to the kitchen, and the dish towel you sat by the stove is in flames. You quickly extinguish the fire, but not before it burns the wall and some of the kitchen cabinet doors. After a quick search online, you realize that even just refacing the cabinets would cost thousands.
Would a renters policy cover it?
Yes. Renters insurance covers damage you cause to your landlord’s property.
Learn more about renters insurance and get a renters insurance quote.
The information in this blog may vary based on your particular state or situation. Always refer to your insurance policy for your specific coverages.