The Heartwood Blog

Importance of Renters Insurance

While renting property has many benefits, it can also make you vulnerable to certain risks. One of these being the lack of protection for your belongings. For those who own their home, home owners insurance helps set worries at ease by covering liability for accidents in the home, and offering monetary replacement in the case of a loss. However, when a tenant is renting a place and a fire occurs, a burglar breaks in or someone gets injured, that tenant can suffer a loss. While the landlord’s property is covered by their insurance, the tenant is liable for accidents that occur and their own belongings.

What does renters insurance cover and why is it so important? Let’s take a look at scenarios where it comes in very helpful.

Personal Liability

This type of coverage provides protection for you as a renter and anyone who visits your apartment or home- should there be an accident. If your visitor is injured while visiting, you won’t be held liable for any injuries. It also could provide legal defense if necessary.

Temporary Housing

Should your home or apartment be rendered unlivable after a fire or any other natural disaster, then temporary housing has got you covered. This type of coverage provides temporary housing while the apartment or house is being rebuilt or repaired.


Should your apartment or home get burglarized, your landlord will not be responsible for replacing anything that was stolen. The only exception to this is if your landlord is legally responsible for the break-in. Most states require landlords to ensure some type of minimum-security measure and if this is not provided, then the landlord may be held accountable. On the other hand, if your landlord is not responsible, then insurance will protect stolen property as long as it is listed on the policy and it is within the coverage limits. Most renter’s insurance policies offer a standard payout on stolen items. Should you need additional coverage, you can purchase an endorsement for certain items.

Fire or Electrical Damage

Should there be a fire due to electrical issues, your landlord may be off the hook. Like many other things, it depends entirely on the fine print in your lease. Take note, because if your landlord does not provide coverage, then you are responsible for all damages from the fire and smoke. Should the fire spread to other apartments, you’ll be responsible for replacing other tenants’ items as well. Renter’s insurance can help cover you in this unfortunate circumstance.

Water Damage

What if you’re away for the weekend and the water heater leaks, damaging some of your belongings? If you have renters insurance, then this damage is covered. When you’re dealing with water damage and renting, the landlord’s insurance rarely covers your personal belongings.

It’s important to keep in mind that like auto insurance, what is covered in renters insurance depends on your policy. However, with the variety of plans available, you can find the right coverage to suit your needs and help calm your worries.