Does Renters Insurance Cover Damage to Property?

When you come across the term renters insurance, does it give the impression that it covers property damage? If so, what sort of property damage does renters’ insurance cover?

Renters insurance is specifically designed to financially protect tenants, which includes personal belongings and liability costs. So, coming back to the main concern, yes, renters insurance does cover damage to property, but that specifically applies to your personal property.

If you’re wondering whether renters insurance covers your rented unit, or apartment, typically not, unless you’re responsible for accidentally damaging your landlord’s property. Building structures are particularly covered by your landlord’s insurance policy.

In this article, you’ll learn exactly when renters insurance covers property damage and when it doesn’t, so you’re well informed of the extent of protection you can get.

Does Renters Insurance Cover Personal Property Damage?

Yes, renters insurance covers damage to your personal property, such as furniture, electronics, clothing, and other belongings you own inside your rental unit.

However, coverage only applies if the damage is caused by a covered peril listed in your policy. Standard renters insurance protects your belongings against a variety of perils like fire, theft, vandalism, and more, but some events are excluded.

To understand what financial protection you truly have, it’s important to know which perils are covered and which aren’t under a standard renters insurance policy.

While getting to know what renters insurance is and what it covers, it’s also essential to find a reliable insurance agency that offers an affordable renters insurance policy. For instance, if you’re located in Michigan, you can explore PLPD’s renters insurance solutions with statewide coverage.

16 Covered Perils

Renters insurance protects your belongings against specific named perils, i.e., events that your policy explicitly lists as covered causes of loss. A standard renters insurance policy has 16 covered perils, which typically include the following.

• Fire or Lightning: Damage caused by accidental fires or lightning strikes.
• Windstorm or Hail: Storms such as thunderstorms, hurricanes, tornadoes, hail, and other severe storms
• Explosion: Sudden blasts, whether inside or outside your home. 
• Smoke: Damage from smoke, even without a full fire (not including repeated smoke from fireplaces). 
• Vandalism or Malicious Mischief: Intentional damage caused by others. 
• Theft: Stolen belongings, whether inside your rental or taken while you’re away. 
• Damage from Aircraft: Falling debris or aircraft impacts. 
• Damage from Vehicles: If a car accidentally hits your building and damages your belongings. 
• Riot or Civil Commotion: Damage caused during public disturbances. 
• Volcanic Eruption: Ash or blast damage (not earthquakes). 
• Falling Objects: Items falling from above that damage your belongings. 
• Weight of Ice, Snow, or Sleet: Collapse or damage caused by heavy winter buildup. 
• Water or Steam Discharge: Burst pipes or accidental leaks from appliances (not floods). 
• Sudden Tearing, Cracking, or Bulging: Failures in heating or cooling systems, like water heaters. 
• Freezing: Burst pipes caused by a sudden freeze, if you took proper precautions. 
• Electrical Damage: Sudden electrical surges that damage appliances or electronics.

Covers Personal Belongings Located Outside Your Rental Unit

The most interesting part of the renters insurance coverage is that it extends beyond your rented home. If your personal belongings get damaged while you’re staying at a hotel or in your car’s storage, your renters insurance coverage will pay for their repair/replacement costs.

However, this off-premises coverage usually has a limit of up to 10% of your personal property coverage limit. So, if you have $20,000 of personal property coverage, you can get up to $2,000 of renters’ insurance coverage for your damaged belongings.

Exclusions

While renters insurance generally covers your belongings for several named perils, there are some common exclusions, which include the following.

• Flood
• Earthquake
• Intentional Damage
• Normal/Gradual Wear and Tear
• Pest Infestation

In some cases, even the named perils can come under exclusion. If a named peril such as a severe storm breaks your windows and damages your personal belongings, then your renters insurance policy will cover the damages.

However, if the storm causes a flood or a tsunami that damages your belongings, the personal property coverage of your renters insurance policy won’t cover the damages.

Additionally, if you’re expecting that your car will get covered through the policy’s personal coverage, then you’re mistaken; renters' insurance excludes cars as they are specifically covered by auto insurance. So, whether your car’s parked in a rented garage or anywhere nearby, it won’t get covered due to theft or any accidental damage.

Does Renters Insurance Cover Accidental Damage to the Landlord's Property?

Well, that depends. Generally, your renters insurance won’t cover the building structure or any component of your rental unit. But if you’re responsible for any accident that causes damage to your rental home, or the building itself, then the liability coverage of your renters' insurance will cover your landlord’s property when they claim insurance.

For example, if a kitchen mishap starts a fire and damages walls, cabinets, or your landlord’s belongings, your renters insurance may help cover those repair or replacement costs. The same applies to other accidental damage you cause, such as an overflowing bathtub that leaks into another unit.

Will Renters Insurance Cover Accidental Damages to Someone Else’s Property?

Yes, the liability coverage of your renters insurance policy will cover any accidental damage to someone else’s property that you’re responsible for. Whether it's your guest, neighbor, landlord, or someone who’s just passing by.

For example, if your pet cat or dog damages your neighbor’s furniture, laptop, or any other personal belongings, your liability coverage will pay for the repair/replacement costs up to your coverage limit. Similarly, if their fridge, TV, or any other personal property gets damaged due to your water pipe leakage, your liability coverage will cover the expenses.

So, that’s why it’s crucial to ensure you have a liability coverage of $100k to $300k to ensure that you’re adequately covered. If not, you will have to cover the remaining expenses out of pocket.

Actual Cash Value vs. Replacement Cost Value: Which is Better to Cover Personal Property Damage?

When it comes to purchasing renters’ insurance to cover your personal belongings, you can either opt for actual cash value or replacement cash value. The advantage of opting for the actual cash value is that, on average, it's 10% cheaper compared to the replacement cost coverage.

However, the actual cost coverage takes the depreciation cost into account, so you will get coverage for your damaged belongings at their depreciated value. While the replacement cost coverage provides reimbursement at the brand-new price.

The actual cost coverage is more beneficial for older belongings, or cheaper possessions like clothes, shoes, and accessories, while the replacement cost coverage is better to protect expensive furniture, electronic appliances, and high-value items like jewelry.

The table below shows a simplified comparison of ACV vs RCV coverage to help you determine which one is better for you.

Is Renters Insurance Necessary to Secure Your Personal Belongings in Michigan?

If your concern is from a legal aspect, then no, renters insurance isn’t required or mandatory in Michigan. However, if you prioritize covering your personal belongings, then yes, renters insurance is necessary in Michigan.

Natural disasters, especially severe storms, are very common across Flint, Saginaw, Mt. Pleasant, Detroit, and many other locations across Michigan. Without adequate renters' insurance coverage, you may need to spend substantial out-of-pocket expenses for repairing or replacing your personal belongings if they get damaged due to these dangerous storms.

There’s always a chance of accidental fire, water pipe leakage, short circuit, and other accidents that can damage your personal belongings. Also, Michigan’s high crime rate increases the chances of theft and vandalism, which are additional threats to your valuables. So, to keep your personal valuables financially secure, it’s essential to have renters insurance in Michigan.

Now, if you’re considering getting a renters insurance policy, it’s essential to know the average cost and the process of purchasing renters insurance in Michigan.

The Bottom Line: Keep Your Personal Belongings Protected with Renters Insurance

Renters insurance provides various covered perils that can help you protect your personal belongings from unexpected events, natural disasters, and even criminal activities like theft and vandalism.

Just imagine, a storm hits and ravages your rented apartment, leaving all your personal belongings wrecked and severely damaged. Or a fire accidentally breaks out and burns all your valuables. Can you afford to repair or replace all your belongings after such an accident? Even if you can, it can be financially overwhelming.

So, that’s why the best option is to get adequate renters’ insurance coverage to safeguard your personal property in case the unexpected happens. If you’re interested in purchasing a renters insurance policy or need expert guidance from an agent, contact us for a free quote today.

Frequently Asked Questions (FAQ)

What costs are typically covered by renters insurance?

Renters insurance typically covers the cost to repair or replace your personal belongings after a covered peril, liability expenses if you accidentally damage someone else’s property or injure them, and additional living expenses if a covered loss forces you to temporarily move out of your home. 

Does renters insurance cover damage to the building I live in?

No, any damage to the building’s structure, walls, or fixtures is typically covered by your landlord’s insurance unless you caused the damage and are found liable. 

Are electronics covered by renters insurance?

Yes, electronics like laptops, TVs, and gaming devices are covered against covered perils.  

Does renters insurance cover water damage?

It depends; sudden and accidental leaks from pipes or appliances are typically covered. But flooding from outside water is excluded and requires separate flood insurance.