How Renter's Insurance Covers Fire Damage

4/18/2022 (Permalink)

The landlord's property insurance policy protects the rental unit against fire damage, but it does not cover the renter's personal belongings.

How Fire Damage Is Covered By Renter's Insurance

Many renters think they don't need renters insurance because they don't own the property they live in. However, there are several ways that this insurance protects renters.

Personal Property

The landlord's property insurance policy covers fire damage to the rental unit, but it does not provide coverage for the personal property of the renter. Personal property refers to the various personal items owned by the renter and stored in the rental dwelling:

• Clothing
  
• Electronics
  
• Computers
  
• Small appliances
  
• Furniture

Most types of personal property are covered by renter's insurance, but some may be excluded or come with specific limits. Most policies provide replacement value coverage, but some may be actual cash value policies.

Liability

Renters insurance also provides liability protection. This provides coverage for damages you are legally liable for to another person because of your negligent actions. For example, if you negligently started a fire in your rental unit and smoke from that fire caused damage to your neighbor's clothing, your insurance would pay for cleaning or replacing your neighbor's property, as long as you are found to be legally liable for the damages.

Medical Payments to Others

Unlike liability coverage, medical payments to others is a no-fault coverage. This means that you don't have to be legally liable for the injury to another person for their medical bills to be covered. If you have a guest over and that person suffers smoke inhalation due to a fire in your apartment, this coverage may apply whether or not your negligence caused the fire.

Loss of Use

If you have to move out of your apartment because of fire damage. Loss of use coverage may apply to expenses such as renting a hotel room during fire restoration.

Renters insurance provides multiple protections for renters who experience fire damage. An insurance professional in South Coast Metro, CA, can provide you with more information about this coverage.