A renters insurance policy covers covers your personal property, liability, medical expenses and additional living expenses.
Personal property
Renters insurance covers your belongings, including:
- Clothing
- Electronics
- Furniture
- Appliances
If you want your renters policy to cover high-value items such as art or jewelry, they may have a lower coverage limit than other belongings. Talk to insurers about these items when choosing your coverage limits.
Personal liability
Personal liability helps cover legal costs and medical bills related to injuries or property damage you cause to others. It can also cover dog bites.
Medical expenses
Medical expenses coverage helps pay the medical bills of someone injured in your rental home, regardless of who’s at fault.
Loss of use (LOU)
Also known as “additional living expenses,” or ALE, LOU coverage pays the extra costs that may come up if you need to relocate while your rental home is repaired. This normally includes hotel rentals, food and extra commute costs.
Named peril vs. open peril renters insurance
There are two types of renters insurance coverage — “named peril” and “open peril.” Named peril coverage insures against events listed by name in your policy. Open peril coverage insures against all events unless they’re listed as exclusions in the policy.
Some common covered perils:
- Smoke and fire damage
- Theft and vandalism
- Damage due to the weight of ice or snow
- Wind and hail
- Water damage
Open peril coverage can cost more than named peril, but can be worth it for the broader range of coverage.
The perils your renters insurance covers are listed on your policy’s declaration page.
