What Does Renters Insurance Actually Cover? (And What Most People Get Wrong)

TL;DR 

Renters insurance protects your personal belongings, liability, and additional living expenses if something unexpected happens, like a fire, theft, or certain types of water damage. It typically covers things like furniture, electronics, clothing, and personal items. It can also help pay for temporary living expenses if your home becomes uninhabitable and provide liability coverage if someone is injured in your rental home. 

Anyone renting a home or apartment can benefit from renters insurance, especially those who own valuable personal property, like electronics, furniture, or jewelry. To understand what renters insurance covers and doesn’t cover, it helps to be aware of what’s already covered by homeowners insurance, which is your landlord’s responsibility. Homeowners insurance protects the structure and any property inside the structure owned by the landlord, while renters insurance covers the tenant’s personal belongings inside the rental property. 

And finally, certain things aren’t covered by homeowners insurance or renters insurance, like floods, earthquakes, or getting your car stolen. 

In an ideal world, nothing bad happens. But in the world we live in, rental homes can get broken into, valuables might get stolen, and a visitor could get hurt in your home. Renters insurance coverage is designed specifically for people who rent property. 

It covers you and your personal property against things like theft, fire, vandalism, and even injuries someone might sustain in your home. 

Unfortunately, not everything is covered. For example, your landlord is responsible for things like structural damage to the place you live in. Additionally, some natural disasters are covered, such as windstorms and hail, while others aren’t, like floods and earthquakes. 

If you’ve ever asked yourself, what does renters insurance actually cover, this guide breaks down exactly what is and isn’t included so you can make an informed decision.

What Does Renters Insurance Actually Cover? 

Renters insurance is designed to cover anyone who rents a home. It protects your belongings and covers you if someone gets hurt in your residence or if you accidentally damage someone else’s property. 

Let’s dive in and look at the different unexpected events renters insurance can cover. 

What Most People Get Wrong About Renters Insurance

Renters insurance is designed specifically for tenants, yet many renters still go without coverage, often assuming the cost isn’t worth it or that their landlord’s policy will protect them. In reality, it covers risks tenants face, risks that are more common than many people think. 

Have you ever stopped to consider how much everything you own is actually worth? The combined value of your clothes, laptop, smartphone, jewelry, and other personal items add up quickly. Without coverage, replacing them after a fire, burst pipe, or theft could cost you thousands out of pocket. 

So why do so many renters decide not to get coverage? Some of the most common reasons include:

• “My stuff isn’t worth that much.”

• “I’m not sure renters insurance is worth the cost.”

• “My landlord’s insurance covers property damage.”

The truth is, renters insurance goes far beyond protecting personal belongings. Most policies also include liability coverage, temporary living expenses, and protection against common risks. While landlords cover whatever happens to the structure of your home, their policy does not cover your personal property inside. 

Basic Coverage of Renters Insurance 

Although you can fully customize your renters insurance to fit your needs, every basic renters insurance policy is made up of three parts: 

• Personal property 

• Personal liability coverage 

• Additional living expenses (ALE) 

Let’s dive in to fully understand what each one covers and what it doesn’t. 

Personal property coverage 

We know your belongings are more than just “stuff”. They’re a reflection of you, your style, and your memories. That’s why renters insurance covers your personal belongings if bad things happen, like a fire, theft, or vandalism. 

Here’s what Kanguro includes as part of its renters insurance personal property coverage: 

• Furniture and appliances: Sofas, chairs, refrigerators, and other essential household items.

• Clothing and personal items: Your wardrobe and accessories are covered up to a certain limit, so be sure to review your policy details.

• Electronics and decor: Items like TVs, laptops, phones, and artwork are covered within coverage limits.

• Books and other media: Books, e-readers, and other personal media. 

When personalizing your quote, keep in mind that personal property coverage limits apply. This means you’ll need to estimate how much your personal property is worth, since that’s how much will be covered if something bad happens. When you get Kanguro renters insurance, you can choose personal property coverage between $5,000 and $50,000.

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Personal liability coverage 

Accidents happen. But with solid personal liability coverage, you can have peace of mind knowing you’re protected if someone gets hurt in your home or if you accidentally damage someone else’s property. 

Legal issues can be stressful and expensive, but everything is easier with solid liability coverage to back you up. 

Here’s what’s included: 

• Injuries to others - If someone is injured at your place, liability coverage for renters covers you. If your dog accidentally bites a guest, medical expenses are covered. And don't forget, you can also get pet insurance with Kanguro to help cover your furry friend's medical costs.

• Property damage - If you accidentally damage someone else's property, renters insurance helps with repair or replacement costs (e.g., you accidentally throw a ball and break your neighbor’s window).

• Legal fees & court costs - Legal defense costs if you're sued for an incident that happens in your home (e.g., A guest trips and falls).

Additional living expenses (ALE) 

If something happens to your home that makes it unlivable, renters insurance additional living expenses coverage helps pay for all the extra costs of living somewhere else. We understand: having to leave your home can be extremely upsetting and difficult. But solid ALE coverage in your renters insurance can at least make things a bit easier on your wallet. 

Here’s what’s included: 

• Temporary housing costs - Hotel or short-term rental costs while you’re away from home.

• Increased food costs - If you need to eat out because your kitchen is damaged.

• Storage fees - If you need to store your belongings while you can't stay in your home.

• Pet boarding fees - If you can't take your pets to your temporary housing.

• Laundry expenses - If you need to do laundry away from home. 

• Transportation costs - Reasonably increased transportation costs related to your temporary housing. 

• Furniture rental - Furniture rentals to make your temporary housing more comfortable.

Additional Things Renters Insurance Can Include 

The really cool thing about renters insurance is the ability to customize your policy to your needs. In addition to deciding exactly how much personal property coverage and liability coverage you need, you may also decide that there are some add-ons you want to include to make your policy extra robust. 

Here are a few extra things you can add to your Kanguro renters insurance policy: 

• Additional coverage - For a small additional fee, you can cover replacement costs, water and sewage backup, and fraud protection. 

• Additional parties - If you want to add a roommate, you’ll need to make sure to include them as an additional party in your policy. Spouses and dependents are automatically included. 

• Scheduled items - Fancy or extra valuable items that need additional coverage beyond personal property coverage belong in this category. 

Additional coverage 

The ability to customize your renters insurance means your premium can vary significantly based on all the parameters you can customize. Someone who gets renters insurance to fill a landlord’s requirement might opt for a very lean policy, while a risk-averse tenant might decide they want comprehensive coverage to protect everything they own. Here are some options for additional coverage commonly offered by renters insurance, like Kanguro: 

• Replacement cost - While standard personal property coverage typically pays based on actual cash value (depreciation applied), the replacement cost add-on helps cover the cost of replacing your belongings with new, comparable items. 

• Water and sewage backup - This covers up to a certain amount in damages if a sewer or drain backs up into your home.

• Fraud protection - With this fraud protection add-on, legal fees, credit monitoring, and other costs to help restore your identity in case of fraud are covered. 

Additional parties

While your spouse and dependents are automatically included in your renters insurance policy, you might want to add someone who lives in your home so they’re also covered, such as a roommate or a distant relative. 

Scheduled items

For an additional fee, renters insurance lets you add extra protection for high-value belongings, often called scheduled valuable items, such as: 

• Electronics - TVs, computers, cameras, home theater systems, and gaming consoles

• Personal items - Musical instruments, designer clothing, fine jewelry, sporting equipment, bicycles, and electric scooters

• Collectibles and valuables - Fine art, collectibles, rare books, and manuscripts 

• Household items - High-end appliances, home office equipment, home video equipment, and barbecue grills 

While coverage for scheduled items varies by provider, Kanguro allows renters to add items like barbecue grills, home office equipment, home video equipment, and electric scooters to their policy. 

What Does Renters Insurance Not Cover? 

Renters insurance offers broad protection, but it doesn’t cover everything. Here’s what most renters insurance policies won’t cover: 

• Damage to the building itself - This is covered by your landlord’s insurance.

• Floods and earthquakes - These usually require separate policies.

• Normal wear and tear - Gradual deterioration over time.

• Pest infestations - Removal of pests, such as rats or bed bugs. 

• Intentional damage 

• Your roommate’s stuff - Unless you add them as an additional party when customizing your policy. 

• Theft of your car or car parts - While items stolen from your car are covered by renters insurance, car theft itself is not covered. 

So, is Renters Insurance Worth It?

Renters insurance doesn’t mean you expect the worst. It means you’ve decided to be prepared for the unpredictable unknowns of life. When you consider how much damage can be caused by even one incident of theft, fire, or water damage, the cost of coverage becomes small compared to paying out of pocket. For many renters, it is a simple and affordable way to protect their belongings, reduce financial stress, and gain extra peace of mind. 

Frequently Asked Questions

Does renters insurance cover theft? 

Yes, renters insurance typically covers theft if your policy includes personal property coverage. This means it may help replace items stolen during a break-in, as well as belongings stolen outside your home.

For example, if your laptop is stolen from your car, your renters insurance personal property coverage may help pay to replace it. Keep in mind that coverage is usually subject to a deductible, so you would need to pay that amount before insurance covers the rest. 

Does renters insurance cover water damage? 

Renters insurance may cover certain types of water damage, but not all. In general, it covers sudden and accidental water damage, such as a burst pipe or an overflowing appliance that damages your belongings.

However, damage caused by flooding is not covered by standard renters insurance policies. Flood insurance typically requires a separate policy through specialized providers. Coverage details can vary, so it’s always a good idea to review your policy carefully.

How much personal property coverage do I need?

A good way to estimate how much personal property coverage you need is to think about how much it would cost to replace everything you own. One helpful exercise is creating a simple inventory of your belongings, including:

• Furniture and appliances: Sofas, chairs, refrigerators, and other household essentials. 

• Clothing and personal items: Everyday clothing, shoes, and accessories. 

• Electronics and decorations: TVs, laptops, phones, artwork, and decorative items. 

• Books and other media: Books, e-readers, and personal media. 

Once you have an estimate, you can choose coverage that matches the total replacement cost. Kanguro allows renters to select personal property coverage amounts between $5,000 and $50,000. Keep in mind that high-value or expensive items are often better protected by scheduling them separately.