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Home » Property insurance » What Does (And Doesn’t) Renter’s Insurance Cover?

There’s a common misconception that the landlord’s insurance policy will protect the tenant’s property in case of an accident or natural disaster. Unfortunately, it’s often too late when tenants see that this isn’t the case. Renter’s insurance, as the name suggests, protects the renter’s property. That reason should be enough to encourage your tenants to get insured today.

What is Renter’s Insurance?

A renter’s insurance policy protects people and property from certain perils. The coverage of renter’s insurance varies by insurer, but it typically covers:

  • Personal Property Damage. Renter’s insurance covers the dollar value of the items that were lost due to various causes listed in the insurance policy. Keep in mind that renter’s insurance won’t always cover everything. Sometimes, the tenant needs to purchase additional renter’s insurance.
  • Personal Liability. In case another person is hurt on the rental property and the renter is found responsible for it, the renter’s insurance will cover the associated costs, including medical costs and legal costs. On average, a renter’s insurance policy covers up to $100,000.
  • Additional Living Expenses. In case the rental property becomes uninhabitable, the renter’s insurance will cover the costs of For instance, if the rental property is damaged due to a storm, the renter’s insurance will pay for a hotel room where the tenant/s will stay while the landlord repairs the property.

If you’re renting out your residential unit, it is essential that your tenant purchases renter’s insurance. It’s what will protect your tenants and their property (i.e. what they own) in case of an accident, natural disaster, and so on.

If your tenants don’t know where to purchase renter’s insurance, ask a property management company today. They will be able to help your tenant find a well-known insurer that provides the kind of coverage they’re looking for.

What Does Renter’s Insurance Cover?

Renter’s insurance is cheap, with the typical plan costing not more than $15 per month, so it’s well worth getting in case of an accident. However, not all tenants are convinced that they should have renter’s insurance. We have prepared an outline of what renter’s insurance covers, so you can give this list to your tenants to convince them:

#1 Personal Property

Personal Property

Renter’s insurance protects your tenant’s personal property from common perils. It’s worth mentioning, however, that not all events will be covered. Your tenant can only file a claim if the peril is listed in their insurance policy. Examples of perils covered by renter’s insurance include fire, explosions, break-ins, and the like. Renter’s insurance typically does not apply to properties in flood-prone areas, so if your rental property is in Fort Lauderdale, your tenants should consider purchasing additional flood insurance.

#2 Personal Liability

Let’s say that your tenant’s dog bites another tenant. If they don’t have renter’s insurance, they’ll have to pay the associated costs out-of-pocket. With renter’s insurance, they’ll be protected by the $100,000 coverage which they can use to pay for medical costs and lawsuit costs. It’s worth mentioning that renter’s insurance applies to accidents where the tenant is at fault, so the property owner (you) isn’t entirely in the clear. Consult a property management company today to ensure that your property is safe so you won’t be blamed in case of an accident.

#3 Loss of Use

Renter’s insurance also covers ‘Additional Living Expenses’ (ALE), which is when the tenant can’t continue to live in the unit due to its condition. It applies only if the unit has been affected by one of the covered perils listed in the insurance policy. For example, if the apartment is burned down, renter’s insurance can pay for the tenant’s hotel stay or temporary rental, as well as other expenses, while they wait for their unit to be repaired. This, however, does not give the tenant the opportunity to live large – there are still limits.

#4 Others

The renter’s insurance can also pay for food loss if the food in the fridge is spoiled during a power outage. In addition, the renter’s insurance also covers the tenant in the event that any building alterations they paid for are damaged due to a covered peril. Since what renter’s insurance covers varies by insurer, it would be best to consult a property management company so you can advise your tenants correctly.

What Doesn’t Renter’s Insurance Cover?

Now that you know what renter’s insurance covers, it’s time to look at what it doesn’t cover.

#1 Flood and Earthquakes

Flood and Earthquakes

Renter’s insurance does not apply to these natural disasters. This is because these perils aren’t that common in other areas, so it wouldn’t make sense to force people to purchase insurance they likely do not need. If your rental unit is in a flood-prone or earthquake-prone area, consider requiring your tenants to get specific renter’s insurance to keep their property safe from these disasters.

#2  Bugs and Pests

Insurers aren’t responsible for dealing with pest infestations in a rental property. This is because a pest infestation is considered a maintenance issue. The property owner and the tenant should work together to make sure that pests don’t enter the unit. This means that the South Florida property management company should conduct routine inspections, and the tenant should ensure that the unit is clean at all times.

#3 Car Theft

The tenant’s insurance covers the stuff inside the car, however, it does not cover the car itself. If the tenant’s car is stolen along with the things inside it, their insurance policy will only cover the dollar value of the items inside the car. They will have to count on their auto insurer to cover the car-related costs.

#4 Roommate’s Belongings

Roommate’s Belongings

If your tenant is subletting the unit, they should be aware that their renter’s insurance doesn’t apply to their roommate. So, if a fire damages your tenant’s things, they can count on their renter’s insurance to recoup the costs, however, the roommate will be on their own.


Why should your tenants get renter’s insurance? The answer: it protects people and personal property when the property owner’s landlord insurance can’t. Remember, your insurance covers your investment property, but it does not cover your tenant’s property. Only your tenants can protect themselves in the event of a covered peril.

Are you having a hard time convincing your tenants to have renter’s insurance? That’s why we’re here. Contact the experts at Luxury Property Care today to learn more about renter’s insurance, and to ensure that your tenants find the ideal insurance for their needs. Call us at (561) 944 – 2992 or contact us online today.

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