Whilst living in a rented home, renters insurance provides personal belongings & liability risk protection. But renters policies and no insurance policy to quote are limited, with exceptions and limitations. Knowing what is covered is just as important as knowing what isn’t to ensure you have the appropriate protections in place. Therefore, we will discuss what does renters insurance not cover in this article of Newsforshopping.
Structural Parts of the Building
Real property includes things such as walls, floors, ceilings, plumbing, electrical wiring, or other permanent rental unit features. The landlord must insure these structural elements under their property insuring policy. Your renter’s insurance would not cover the damage that you do to these structural elements.
Business or Professional Use Items
If your home is used for a home-based business, items of inventory, equipment, tools, or product samples wouldn’t be covered under a standard personal renters policy. Instead, business property and operations would have to be insured with commercial insurance that is tailored for that.
Land/Property Outside of Living Space
Typically property left outside of the insured address is not covered. The personal belongings stored in detached garages, sheds, and yards would be excluded from being recovered in the event of damage or theft. Your renter’s policy only “covers” items that are kept inside the walls of the insured location, i.e. the interior living spaces of your rented home.
Flood or Surface Water Damage
Specific flood insurance through FEMA’s National Flood Insurance Program is required for flood water damage caused by storms, burst pipes, or other causes. Like earthquake insurance, earthquake-prone areas also don’t include this insurance, and you have to buy this as an add-on policy.
Motor Vehicles
Car, boat, ATV, and motorcycles are also major exclusions. An auto insurance carrier should provide comprehensive collision coverage for these vehicles as opposed to the coverage offered in many a renter’s policy.
Intangible Property Loss
Those who keep money, documents, securities, copyrights, and watercraft that are not covered under the policies scheduled property are excluded.
Wear and Tear or Gradual Deterioration
The policy does not ensure ordinary wear and tear of personal possessions caused by aging.
Renters insurance takes a long way to protect your belongings and liability risks, but it has some limitations you should know about. If not, you may need additional coverage to have floods, earthquakes, vehicles, or other property or exposures insured for life’s uncertainties. As a renter, reviewing exclusions can take time, but can also help to protect your assets and investments.
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