What are some common things that renters insurance doesn't cover?

Key takeaways

• Roommates need to purchase their own renters insurance if they want coverage for their belonging.
• You can add additional coverage to your renters insurance by adding extra options called endorsements.
• Renters insurance won't cover damage to your car while it's parked at home, but it should cover stolen items inside your vehicle.

Renters insurance is an easy and affordable way to protect your personal belongings against theft and damage. Renters insurance also provides coverage for liability and out-of-pocket costs associated with temporary living expenses if you're unable to live in your home due to a covered claim event such as a fire.

Like most insurance, renters insurance has its limits. By knowing what it doesn't cover, you can make better choices about your coverage. Here's what you need to understand about what renters insurance doesn't cover (also known as “exclusions” in insurance terms).

What renters insurance doesn't cover?

Natural disasters

Flooding, earthquakes, and sinkholes are three examples of natural disasters that are not covered under a standard renters insurance policy. If you believe that you are at risk for any one of these incidents, you can consider adding additional coverage endorsements to make sure you're protected.

Your roommate's belongings

Your renters insurance only covers your stuff, not your roommates'. So, if there's a fire and both your things and your roommate's get damaged, your insurance will pay for your belongings but not theirs. Your roommate can buy their own renters insurance or may be able to add coverage to your policy if that works better.

Wear and tear

Renters insurance doesn't cover wear and tear on personal property as it is your responsibility to properly maintain and care for your belongings.

So for example, imagine you left some stuff out on your balcony, and it got ruined because of the weather. Unfortunately, your renters insurance won't cover that because it was up to you to keep your things safe inside.

Accidental and intentional damage

Damage caused by an accident or an intentional action, whether by a person or a pet, isn't covered under a renters insurance policy.

Let's say you accidentally spill a soda on your laptop and it stops working. Renters insurance won't cover the repairs or replace with a new one because it's your responsibility to take care of your things.

Damage to the building

If you accidentally damage something in your apartment, like a wall or an appliance, your renters insurance won't pay for the repairs. It only covers your personal stuff, not the building itself.

For example, if the refrigerator in your rental's kitchen breaks, and it belongs to your landlord, it's your landlord's responsibility to take care of it, not yours.

Your car

Renters insurance won't cover any damage to or theft of your car when it's parked at your place. But if something inside your car gets stolen or damaged while it's parked, your renters insurance may help pay to replace those items.

High value items and collectibles

Most renters insurance policies have limits on how much they'll pay for valuable items like gaming equipment or engagement rings.

For example, if your policy only covers your gaming setup up to $1,000, but it's actually worth $3,000, you'd only get $1,000 if something gets stolen. The same goes for expensive jewelry. If your engagement ring is worth $5,000 but your policy only covers $1,000, you'll have to pay the difference out of pocket.

The good news is that you can usually increase the coverage limits or add optional coverages called endorsements for those valuable items, like jewelry coverage, ensuring they're fully protected!

Like any insurance, renters insurance has its limits, but it's still a simple and affordable way to protect your property from damage and help cover costs if you face a liability claim.

Find out for yourself just how affordable a renters policy can be. Get a quote for renters insurance coverage today.