All renters insurance policies include three core coverages: personal property, personal liability and additional living expenses (ALE).
What Does Renters Insurance Cover?
Updated: January 26, 2026
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Key Takeaways
Renters insurance covers three things: your personal property, your liabilities and any additional living expenses for temporary housing after a covered event.
The commonly covered events for renters insurance policies include fire, theft, vandalism and windstorms.
Some major exclusions apply, including floods, earthquakes, pest damage and your roommate’s belongings, which require separate coverage or add-ons.
What Renters Insurance Covers: 3 Key Protections
Personal Property Coverage
Personal property coverage reimburses you for damaged or stolen belongings in your apartment or rental home after covered events like fire, theft or vandalism. Your policy covers furniture, electronics, clothing and other personal items you own as a renter, up to your coverage limit. Most renters insurance policies offer coverage limits ranging from $20,000 to $50,000, though you can adjust this based on your belongings' total value.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
Renters insurance pays claims using either actual cash value or replacement cost value, which affects how much you receive for damaged or stolen items.
Actual Cash Value (ACV) | Current value minus depreciation | $1,000 laptop from 3 years ago pays $400 after depreciation |
Replacement Cost Value (RCV) | Full cost to buy new item today | $1,000 laptop pays $1,000 to buy current equivalent model |
Personal Liability Coverage
Personal liability coverage protects you financially if someone gets injured while visiting your rental unit or you accidentally damage your landlord's property or a neighbor's belongings. The coverage pays for legal fees, medical bills and settlement costs up to your policy limit. Standard renters insurance policies include $100,000 in liability coverage, though you can increase this to $300,000 or $500,000 for about $2 to $5 extra monthly.
Additional Living Expenses (ALE)
Additional living expenses coverage pays for temporary housing if your apartment or rental home becomes uninhabitable due to covered damage like fire or severe water damage. The coverage reimburses hotel bills, restaurant meals and other necessary expenses while your landlord completes repairs. Most renters insurance policies cover ALE for up to 12 months or 20% of your personal property coverage limit, whichever comes first.
When Does Renters Insurance Cover You?
Renters insurance covers you when specific events or perils damage your belongings or create liability situations. A few examples of covered perils include:
Fire and smoke damage | Accidental fires, electrical issues or cooking accidents that create flames, smoke or soot damage to your belongings |
Theft and burglary | Break-ins at your rental, stolen items from your car or belongings taken while you're traveling |
Vandalism and malicious mischief | Intentional destruction, graffiti or deliberate damage to your personal property by others |
Water damage from burst pipes | Sudden plumbing failures, burst pipes or appliance leaks that damage your belongings (excludes flooding from outside sources) |
Windstorm and hail damage | Hurricanes, tornadoes, severe winds or hail that damages your property after entering through broken windows or compromised structures |
Lightning strikes | Direct lightning hits or power surges from lightning that damage your electronics and other belongings |
Falling objects | Trees, branches or debris that fall onto your rental and damage your personal property |
Weight of ice, snow or sleet | Roof or structural collapse from heavy snow, ice accumulation or sleet that damages your possessions |
Explosions | Gas leaks, boiler malfunctions or accidental explosions in or near your rental |
Riots and civil commotion | Property damage or theft during protests, riots or civil disturbances affecting your rental |
Aircraft or vehicle damage | Crashes involving vehicles or aircraft that strike your rental building and damage your belongings |
Personal liability incidents | Guest injuries in your rental or accidental damage you cause to others' property |
What Isn’t Covered by Renters Insurance?
Renters insurance doesn't cover everything, and understanding these gaps helps you avoid surprise claim denials.
Certain natural disasters
Standard renters insurance excludes flood and earthquake damage to your belongings. You'll need separate flood insurance or earthquake coverage to protect against these natural disasters.
Your landlord's building or property
Renters insurance only covers your personal belongings, not the rental unit's structure, appliances or furnishings owned by your landlord. Your landlord's insurance policy covers damage to the building itself and any property they own.
Roommate's belongings
Your renters insurance policy only covers items you own, not your roommate's possessions. Each roommate needs their own policy to protect their personal property.
High-value items without riders
Standard policies limit coverage for expensive items like jewelry, art or collectibles, typically capping reimbursement at $1,000 to $2,500 per item. You'll need to add scheduled personal property riders to fully cover high-value belongings.
Damage from pests or neglect
Renters insurance won't pay for damage caused by rodents, insects or long-term neglect like mold from an unreported leak. These issues fall under maintenance responsibilities rather than sudden covered events.
Business equipment or inventory
Your renters insurance doesn't cover equipment, inventory or supplies you use for business purposes in your rental. You'll need separate business insurance or a home-based business rider for work-related items.
Renters Insurance Coverage: Bottom Line
Renters insurance includes three core coverages: personal property protection for your belongings, liability coverage for injuries or damage you cause, and additional living expenses if your rental becomes uninhabitable.
Policies cover specific perils like fire, theft, vandalism, burst pipes and windstorms, but exclude floods, earthquakes, your landlord's property and high-value items without additional riders. Most policies offer $20,000 to $50,000 in personal property coverage and $100,000 in liability protection, with options to increase limits for higher premiums.
Renters Insurance Standard Coverages: FAQ
Here are answers to common renters insurance coverage questions from MoneyGeek experts:
Does renters insurance cover pet damage?
Renters insurance covers liability if your pet injures someone or damages others' property. If your dog damages your neighbor's belongings or bites a visitor, liability coverage handles medical bills and repair costs.
But renters insurance doesn't cover damage your pet causes to your own property. If your cat scratches furniture or your dog chews shoes, you pay replacement costs yourself.
What happens when I move to a new apartment?
Most renters insurance policies transfer easily to new addresses within the same state. Contact your insurer before moving to update your address and confirm coverage continues without gaps.
Moving to different states might require new policies due to varying regulations and coverage requirements. Some insurers operate in multiple states and can transfer coverage, while others require finding new carriers.
How do I file a renters insurance claim?
Contact your insurer immediately after covered incidents occur to begin the claims process. Most companies offer 24/7 claim reporting through phone calls, websites or mobile apps.
Document damage with photos and create lists of damaged or stolen items. Keep receipts for temporary living expenses if displacement occurs. Don't dispose of damaged items until adjusters examine them unless they pose safety hazards.
Claims typically take 30 to 60 days to resolve, depending on complexity. Simple theft claims might settle within weeks, while major fire claims take longer due to extensive damage assessment.
Is renters insurance required by law?
No states legally require renters insurance, but many landlords mandate renters insurance as lease conditions. Landlords might require specific coverage amounts and add themselves as additional interests on policies.
Even without legal requirements, renters insurance provides valuable financial protection for relatively low costs. The potential losses from theft, liability claims or temporary displacement often exceed policy costs.
Does renters insurance cover storage units?
Personal property coverage extends to belongings stored off-premises, including storage units. But coverage limits often apply (typically 10% of your personal property coverage amount).
If you have $30,000 in personal property coverage, your storage unit contents might be limited to $3,000. For valuable stored items, consider increasing coverage or adding specific endorsements.
Coverage for Renters Insurance: Related Pages
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.