You’re ready to move into your new apartment, and your landlord requires you to have renters insurance. Or, maybe not, but you think it’s important to get a plan to protect your assets. 

Since an average plan costs $15 per month, it might be worth getting one in case of an accident.

However, renters insurance is not a magic wand that can fix everything that happens. There are limits to the amount of value insurance providers cover, as well as deductible requirements. Also, there are certain emergencies that they do not cover.

“In many states, there are generic leases, but sometimes companies include additional clauses,” a leasing consultant with Alliance Residential Company in Houston. Those small changes can affect your coverage.

Here’s a breakdown of what you can expect from your renter’s insurance:

What renters insurance covers

THEFT AND DISASTERS

This worries most people a lot. Personal property coverage protects you against theft, as well as fire and smoke, lightning, vandalism, water damage, and more. Protection also includes food spoilage if there is a power outage. Keep in mind that not all-natural disasters are covered (we’ll explain that later). “Don’t sign any policy if there’s something you don’t understand,” advises Katherine. 

YOUR EXPENSIVE COLLECTION

If you have an expensive collection of jewelry, art, or musical instruments, you should consider scheduled personal property coverage, or “floater.” It will give you more protection for those items. Otherwise, your regular renter’s insurance policy may not be enough.

ACCIDENTS DUE TO OWN FAULT

Accidents happen! Personal liability coverage will bail you out in case a friend trips falls inside your house and decides to sue you for injuries, or if you break or damage something that belongs to your neighbor. Some insurance plans also protect you in situations involving your pets, such as dog bites.  

HOTEL STAYS DURING REPAIRS

If your home is severely damaged by fire or a burst pipe such that you can’t live there, ALE or loss of use coverage covers expenses you may incur while repairs are made. It also includes hotel stays, meals, and any rental payments you may have. Of course, there are limits, so you should check your policy to see what it covers.

INCIDENTS THAT HAPPEN WHEN YOU ARE NOT AT HOME

Just because you’re at work or on vacation doesn’t mean your insurance policy won’t protect you. If theft or accident occurs while you’re away, your policy should include out-of-home coverage. Whenever something happens, be sure to let your landlord know in writing. “That way, if something goes wrong or you have a complaint, there is a document to back up your claim,” says Katherine.

What Renters Insurance Does NOT Cover

FLOODS AND EARTHQUAKES

These natural disasters are not covered by your basic renter’s insurance. Instead, if you live in an area prone to flooding or earthquakes, you can choose to add those policies. Think of it as an advantage: you only pay for the coverage you need.

PESTS

Rodents and other nuisance insects are not considered in renters insurance. Keep your space clean and notify your landlord if you see bed bugs, cockroaches, ants, or any other insects found inside your home.

YOUR CAR

While renters insurance covers your personal property inside your car, the vehicle itself is not covered. If it is damaged or stolen, your auto insurance is responsible for covering those costs.

DAMAGE THAT YOUR PETS CAUSE TO YOUR PERSONAL PROPERTY

While insurance may cover a fire caused by your cat knocking over a candle, it does not cover damage caused by your dog chewing on a television cable. Some policies also exclude certain breeds of dogs and exotic animals.

BUILDING STRUCTURE

This is the responsibility of your landlord, who must take action on the matter. You are responsible for your personal property. “Remember that there may be different laws depending on the type of tenants. What is applicable for a business might not be applicable for an individual owner,” warns Katherine.