Renters insurance covers your personal belongings in case they’re stolen, damaged or lost. There are exclusions to your renters insurance coverage, though. While you don’t want the exclusions to keep you from buying a policy, do know the facts as you ensure you have the coverage you need.
Nearly all the items you own are covered by your insurance policy if they’re lost, damaged or stolen. However, valuables like jewelry, antiques and furs may require a rider or endorsement. Likewise, any items you use for business purposes may not be covered by your renters insurance policy because it’s typically reserved for personal not commercial property.
Certain events are also covered, including fire, smoke, lightning, hail, some water damage, certain types of wind storms, explosions, riots, broken glass, falling objects and more.
You’ll need to read the fine print of your policy to find exactly what’s included. Typically, your personal property is not covered if there’s an:
Most insurance companies do offer riders or endorsements that can cover your property if an earthquake, hurricane or flood strikes. Talk to your agent to learn more about your options.
Limits on Renters Insurance Policies
In addition to considering the exclusions to your renters insurance policy, consider limitations, too.
1. Your property is only covered for the amount of the policy even if they’re worth more.
2. Remember that you’re responsible to pay the deductible.
3. If you chose Actual Cash Value replacement, you’ll receive the equivalent of the item’s current value minus depreciation. Replacement Coverage allows you to replace the item at its current cost no matter how old or in what condition your property was at the time of damage, theft or loss.
When choosing renters insurance, ask about exclusions. Use that information to make sure you’re adequately insured for all the challenges you face.