What is The Most Important Part of Renters Insurance?

renters insurance

What is the most important part of renters insurance? That is, what is the part of renters insurance that you must have? Actually, this is not an easy question to answer because it will vary based upon the individual needs of each Renters Insurance. However, for the sake of this article, a basic standard policy that is required in all states is provided to provide insurance protection for both tenants and owners.

Coverage For Expenses

Renters insurance provides coverage for expenses for damage to the rented property caused by a fire, smoke, hail, earthquake, explosion, vandalism, or violence caused by an intruder. This coverage can also cover the legal liability and any other expenses that may be awarded to a tenant if a third party is responsible for an accident in which the tenant is injured. The good news is that most renters insurance provides a large amount of medical and other benefits to help cover the cost of any covered loss.

When shopping for renters insurance, it is important to be aware of the different types of coverage. Typically, coverage provided is broken down into three different policies. Depending upon the type of rental you are renting, one or more of these types of coverage may be included. For example, comprehensive coverage will assist if a guest should suffer injury or dies as the result of theft or damage to personal belongings.

Common Claims

Flood and fire damage are two of the most common claims made against renters insurance. Flood insurance typically covers damage to the structure of the building and any items stored in the building. While flood damage is not always covered, it is certainly something to consider when securing coverage. Similarly, most fire damage is handled on a case by case basis with specific perils areas being addressed. This will include everything from explosions to flames caused by electrocution.

Personal Property Claim

Most renters insurance also includes a personal property damage section that will cover things like jewelry and clothing. This can also apply to damage caused by theft or smoke damage. However, before signing on the dotted line, be sure to read over the fine print so you understand exactly what your policy provides as far as reimbursements go.

Another commonly overlooked aspect of renters insurance coverage is the impact it will have on personal bank accounts. Some insurance companies will not cover theft on the premises and others will cover a percentage of it. If your renter has valuables that are worth more than ten percent of your combined house value, it may be wise to talk to your lender about adding it to your policy. In addition, some companies will only cover personal property damage resulting from theft or fire.

Some renters insurance policies will cover damages caused by tenants while on their property. This means that if your guest slips and falls on the stairs leading to the upper level, the policy will cover your tenant for the cost of the staircase, as well as any damage they cause to the carpeting. If your dog happens to chew up the doormen, the policy will pay for the repairs. It is very important to keep in mind that the cost of your landlord’s liability insurance will be deducted from this amount, so make sure you know what you’re covered for.


The final aspect of what does renters insurance cover? Landlords insurance will protect your possessions from all manner of liabilities that come from guests who misuse them or steal them. This protection is sometimes referred to as “wear, and tear” insurance. Remember, however, that it will not cover anything that may occur due to conditions existing while you are renting your home.

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