Updated: June 9, 2025
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Damage from fire, theft or certain water leaks is usually covered, but floods, earthquakes and neglect are often excluded without extra coverage.
If you accidentally damage someone else’s property, renters insurance may help pay for repairs or replacement through liability protection.
Renters insurance covers your personal belongings, not the physical structure of your rental. That’s your landlord’s responsibility.
Renters insurance covers your belongings, not the building you live in. If a fire, storm or other covered event damages your things, your policy can help pay to replace them. But if the structure itself is damaged, like walls or floors, that’s your landlord’s responsibility.
Renters insurance won’t pay for repairs to the unit. Your landlord uses their own insurance for that. Understanding this difference helps you know what your policy actually protects.
Your renters policy includes personal property coverage. This helps pay to repair or replace items like furniture, electronics, clothes and appliances if they’re damaged or stolen.
Here are examples of what’s typically covered:
If a fire damages your couch or bed, you can get help replacing them.
If your laptop or TV is stolen, your policy can cover the cost.
Clothes damaged by fire or vandalism are also protected.
If a storm destroys a microwave or mini fridge, your coverage applies.
Bikes or golf clubs are included if stolen or damaged.
Check your policy’s limits and deductibles. If you have expensive items that go beyond the basic limits, consider extra coverage to make sure you’re fully protected.
Make sure you have an inventory of your personal belongings and their value to make the claims process more manageable. Here are a few tips to do this:
Personal property coverage in renters or homeowners insurance has limitations and typically doesn't cover certain items or situations, such as:
Limitation | Description |
|---|---|
High-Value Items | Jewelry, art, antiques and other collectibles are not covered. If you do own valuable pieces, you may need to purchase endorsements or additional policies to adequately protect them. |
Cash and Currency | There are often limitations on coverage for cash, so if you keep a significant amount of money at home and it's stolen or damaged, it may not be fully reimbursed. |
Business Property | If you operate a business from your home, your personal property coverage may not extend to business-related equipment, inventory or liability. You may need a separate business insurance policy. |
Damage Due to Neglect | If your belongings deteriorate or get damaged due to lack of maintenance or neglect, insurance will not cover the loss. |
Certain Types of Property | Some policies may exclude specific property types, such as motor vehicles. Coverage for cars, boats and recreational vehicles typically requires separate insurance policies. |
Pets | Damage or liability related to pets, including pet-related injuries or damage caused by pets, is not included in personal property coverage. |
War and Nuclear Hazards | Damage caused by war, nuclear accidents or acts of terrorism may be excluded from coverage in standard policies. |
Review your insurance policy carefully, understand its limitations and consider purchasing additional coverage or endorsements for items or situations that fall outside the standard coverage. Regularly updating your policy to reflect changes in your possessions and lifestyle can help ensure you have adequate protection.
Knowing how much coverage you need starts with understanding the value of what you own. Use the steps below to find the right personal property limit for your policy.
List everything you own, including furniture, electronics, clothes and other valuables. Be as detailed as possible.
Assign an estimated dollar amount to each item. Use receipts, online prices or best guesses to get a total value.
Check if your policy has special limits for items like jewelry, bikes or electronics. You may need extra coverage to fully protect them.
Many policies come with a standard limit. Compare this to the total value of your belongings to see if it’s enough.
If your estimate is higher than the default limit, raise your coverage. It’s better to overestimate than risk being underinsured after a claim.
In your personal property coverage, replacement cost value (RCV) and actual cash value (ACV) are two different methods used to calculate the amount of reimbursement you receive for a covered loss.
RCV is the cost to replace or repair damaged or stolen items with new, similar items of equal quality and functionality. ACV factors in depreciation when calculating the reimbursement amount.
Aspect | Replacement Cost Value (RCV) | Actual Cash Value (ACV) |
|---|---|---|
Definition | RCV assesses the expense involved in replacing your property or belongings with items of similar quality and functionality. RCV coverage grants you the amount it would cost to acquire new items, disregarding depreciation. | ACV is calculated based on the present value of your property or possessions, considering depreciation over time. In the event of a covered loss, your insurance payout will reflect the depreciated value of your items since their original purchase. |
Claim Payout | The insurance payout is higher, covering the entire cost of replacing your items with new ones. | The insurance payout is generally lower as it accounts for the depreciated value of your belongings. |
Policy Type | RCV is frequently found in more comprehensive policies like HO-3 and HO-5. | ACV is typically associated with basic policies, like HO-1. |
How it works | If your five-year-old laptop is stolen, RCV will reimburse you for a new one with similar features and specifications, regardless of its original purchase price or depreciation. | If your five-year-old smartphone is stolen, ACV will reimburse you for the current market value of a used smartphone of the same make and model, accounting for its depreciation over the years. |
When purchasing renters insurance, it's important to understand your policy's valuation method, as it can significantly impact the amount you'll receive in the event of a claim. Policyholders often prefer RCV for its more comprehensive coverage, but it may come with a slightly higher premium.
This article explains how renters insurance protects your personal belongings, not the structure you rent. It covers damage from events like fire, theft, and vandalism, but not the physical unit, which is your landlord’s responsibility. It also identifies what items are covered, how personal property coverage works, and how to choose the right coverage limit based on what you own.
Navigating how renters insurance works when property is damaged can be tricky. Our answers to common questions about renters insurance can help clarify things.
No, renters insurance does not cover damage to walls, floors or the structure of the rental. That's your landlord's responsibility.
It covers your personal items like furniture, electronics and clothes if they're damaged by events such as fire, theft, vandalism or certain types of water leaks.
Yes, renters insurance includes liability coverage, which can help pay for damage you accidentally cause to another person's property.
No, standard renters insurance does not cover damage from floods or earthquakes. You’ll need separate policies or add-ons for that.
Only up to your policy's limits. If you own expensive items like jewelry or high-end electronics, consider adding scheduled personal property coverage.
Why Trust MoneyGeek? We obtained information from Quadrant Information Services and examined rates of customer and claim satisfaction from the top industry assessments, the National Association of Insurance Commissioners (NAIC), AM Best and J.D. Power.
To provide the best renters insurance solutions for different renter profiles and demands, as well as at the national and state levels, MoneyGeek developed a ranking methodology to compare the data.
Renters Insurance Profile
In this study, we focused on a particular profile of renters, characterized by:
The research also encompassed scenarios involving renters with varying credit histories and different records of insurance claims.
Renters’ Insurance Coverage Details
Calculations for the average renters insurance rates were based on the following policy specifics:
Additionally, our investigation included an exploration of policies offering broader coverage ranges, extending from $20,000 to $100,000 for personal property, liability coverage ranging from $100,000 to $300,000 and deductibles varying between $500 and $2,000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
