Does Renters Insurance Cover Property Damage? (2024 Guide)
Determine what property damage claims renters insurance covers, common exclusions like floods requiring extra endorsements, and protocols for receiving payouts.
We won’t leave you in suspense—yes, renters insurance covers property damage. And what’s more, your coverage can extend past your own rented property. According to Bonnie J. Walker, AIC, CLX Technical Lead, Property at Lemonade, “A renters policy covers your personal property due to a covered cause of loss and will protect you from liability if you’re at fault for someone else’s property damage, or if you caused an injury to a third party.” There can be limits and exclusions in place, so make sure you’re familiar with your policy terms before filing a claim. Let’s take a closer look at what else you need to know about how renters insurance can assist with the financial burden of property damage.
Personal Property Coverage
Unfortunately, personal property coverage isn’t a get-out-of-jail-free card when it comes to replacing damage to possessions from covered causes like fire or theft. You will only receive reimbursement for eligible claims up to stated replacement values, which often leaves plenty of your expenses excluded.
Property Repair vs Replacement
Renters insurance covers the repair or replacement of personal belongings in the event of covered perils. These perils commonly include fire, vandalism, and theft, but double-check exactly what perils your policy covers. Whether the insurance company will pay for the repair or replacement of your belongings depends on the extent of damage and the policy’s terms.
For minor damages, the insurer may opt to cover repair costs, such as fixing a damaged electronic device. However, for items that are extensively damaged or lost, the insurer will likely reimburse the policyholder for the replacement cost, allowing them to purchase a new item of similar kind and quality.
Structural Damage vs Damage to Personal Belongings
When it comes to damage to floors, walls, ceilings, and other structural elements, the property owner is on the hook. They’ll have their own insurance policy to protect them, so the renter won’t have to worry about paying for repairs relating to structural damage.
If your personal belongings within the dwelling are damaged, your renters insurance policy will kick in to help pay for losses due to covered perils.
Common Personal Property Exclusions
Renters insurance is a great way to protect yourself when renting any kind of dwelling. That said, there are some common exclusions to be aware of when it comes to protecting your personal property. Knowing what is and isn’t covered by your base policy helps you determine if you need to buy an endorsement or add-on for further protection, or if you can’t count on renters insurance for certain perils.
Some typical personal property exclusions to look out for when getting renters insurance include:
- Floods and earthquakes: For protection against damage caused by floods or earthquakes, you need to buy separate insurance policies or endorsements.
- Earth movements: When damage occurs from sinkholes, landslides, or earth tremors, don’t expect a standard renters insurance policy to help.
- Pest infestations: Damage caused by pests such as insects, rodents, or vermin is generally not covered by renters insurance.
- Rot and corrosion: Damages relating to gradual deterioration, including rot, corrosion, or mold, may not be covered.
- Mechanical failures: If any appliances or systems experience damages due to mechanical failures or wear and tear, repairs and replacement are often not covered.
- Intentional acts: Damage resulting from intentional actions by the insured or criminal acts committed by the policyholder is not likely to be covered.
Special Endorsement Options
If you aren’t satisfied with your base personal property coverage, you can usually buy an endorsement, rider, or add-on to help round out your coverage. For example, if you own an expensive engagement ring, you’ll want to add a jewelry rider to your policy.
These are some popular endorsements you can consider adding to your renters insurance policy:
- Flood insurance: You will never find flood coverage as a part of your base renters insurance policy. If you live somewhere prone to water overflow from rivers, lakes, or heavy rain, consider taking out a separate flood insurance policy.
- Earthquake insurance: This endorsement extends coverage to include damage resulting from earthquakes, including structural damage and personal property losses.
- Sewer backups: Adding a sewer backup endorsement to your policy can help cover damage caused by sewer or drain backups and cover the cost of cleanup and repairs.
- Jewelry and valuable items: With this endorsement, you can increase coverage limits for high-value items such as jewelry, art, or collectibles, ensuring adequate protection beyond the standard policy limits.
- Identity theft protection: Want to protect yourself from identity theft? You can add coverage for related potential expenses such as legal fees, credit monitoring, and restoration costs.
We like Lemonade renters insurance because it allows you to add endorsements to your policy and see how they impact your premium. This helps you decide whether or not the cost of the endorsement is worth it for you and gives you the full freedom to customize your coverage.
How To File a Property Damage Claim
Filing a property damage claim can be stressful, but you can make things easier by familiarizing yourself with the proper steps to take in advance:
- Document losses: Spend some time thoroughly photographing and documenting all damaged items and areas of your rental. Note details like serial numbers or identifying marks to make your report as thorough as possible.
- Furnish ownership records: Round up any supporting receipts, purchase invoices, or appraisals to establish ownership and the value of your damaged belongings.
- Promptly contact the insurer: Don’t drag your feet on filing a claim. It’s best to report the damage to your insurance company as soon as possible to initiate the claims process.
- Cooperate with adjusters: Allow insurance adjusters to assess the damage and provide any requested information promptly to keep the process moving.
Tips For Preventing Property Damage Claims
Even if you don’t end up filing a claim, having a renters insurance policy is worth it for peace of mind alone. To help protect yourself from property damage, consider implementing proactive measures such as installing smoke detectors, carbon monoxide alarms, and burglar alarms to promptly alert you to potential hazards. You can also invest in surge protectors to safeguard electronics and appliances from electrical surges.
Even though you don’t own the property, it never hurts to conduct the occasional inspection, checking for signs of wear and tear, leaks, or structural weaknesses. By staying vigilant and addressing maintenance concerns promptly, you can reduce the likelihood of property damage incidents and the need for costly insurance claims.
Frequently Asked Questions About Property Damage Claims Under Renters Policies
What is typically not covered by renters insurance?
Renters insurance typically does not cover damages caused by floods, earthquakes, or sewer backups. Renters also wouldn’t be covered for criminal behavior or any damages they or someone listed on their policy intentionally caused.
Does renters insurance repair broken belongings?
A renters insurance policy can help with repair costs for broken belongings as long as it’s a covered peril and the cost of the repair doesn’t surpass policy limits. In some cases, the insurer may decide to give you the replacement cost of the item instead of paying for a repair.
What is property damage in renters insurance?
When it comes to renters insurance, property damage refers to physical harm or destruction to the insured’s personal belongings or the rented dwelling due to covered perils such as fire, theft, vandalism, or certain natural disasters.
Does renters insurance cover damaged walls?
Renters insurance does not cover any structural damage to things like walls or floors. The property owner is the party who will be required to handle repair costs relating to structural damage. The owner should have their own property insurance policy ready and waiting to help them with those expenses.
