Does Renters Insurance Cover an Apartment Unit?

Many landlords require tenants to carry renters insurance for several reasons, but protecting the apartment unit isn’t one of them. Contrary to popular belief, renters insurance is not designed to cover the apartment unit itself. a man and a woman standing in front of a box

a man and a woman standing in front of a box

Instead, a renters insurance policy is designed only to cover the renter and others they interact with. A typical renters insurance policy should include:

Personal Belongings Coverage: Personal belongings coverage provides compensation if your personal items are lost or damaged due to fire, wind, hail, lightning, smoke, theft, vandalism and more.

General Liability: General liability insurance covers claims against you concerning bodily injury and property damage. If someone is injured in your apartment, for example, liability insurance can cover the victim’s medical bills and simultaneously protect you from expenses related to a lawsuit.
Additional Living Expenses: If the home is rendered uninhabitable by a disaster, additional living expenses can help with the cost of temporarily moving, such as the cost of a hotel.

This does not include damage to your apartment unit or complex. If a bad storm causes roof damage to your apartment building, for example, this will be the responsibility of the landlord’s property insurance to cover.

However, this doesn’t mean that you will be off the hook for all damages to your apartment.

What Happens if I Damage My Apartment?

Say you leave a candle burning and a fire breaks out in your apartment. Thankfully no one is hurt and the fire is put out before it can reach other units, but it causes severe damage to your bathroom and bedroom. While your renters insurance will cover your belongings and your landlord’s insurance will cover the unit, you won’t necessarily be free from consequences. Since the fire was caused by a candle you left burning, a landlord could sue you in return for damages. Even if the damages were covered by their insurance, they still had to pay a deductible as well as additional costs not covered by insurance, not to mention that their insurance rates will likely now go up because of a claim.

If you find yourself in this position, be sure to speak with your insurance agent. Renters insurance also covers liability, which includes coverage for damage you may cause someone else. Your renters insurance may protect you against a claim and help you pay for damages you cause without having to scramble for a way to pay it all out of pocket.

Does Renters Insurance Cover an Apartment Unit?

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