Surprising things renters insurance covers, leaves out

Insurance is designed to offer peace of mind, but there’s a reason your policy has all that fine print: You might not have the coverage you expect. Like any other insurance policy, renters insurance has exclusions, and knowing about them ahead of time can help you avoid unexpected bills in a disaster

Ju st a s i mp o r t a n t , though, is knowing what IS covered. All that fine print in your policy likely includes coverage you might not expect, which could save you money down the line.

Covered: belongings outside your home

Most renters know insurance covers personal belongings within their home but may not realize their things are probably covered off-premises too, including when traveling. Barbara

Madvin, an insurance agent at Gaspar Insurance Services, says vehicle break-ins are some of the most common insurance claims she sees for renters. While damage to the car itself is generally covered by your auto policy, your renters insurance pays for items stolen from the vehicle, as long as their value exceeds your deductible.

Your renters policy will also cover your belongings if you move them from your home to a storage unit, a friend’s house or anywhere else to protect them from a covered disaster. In the event of a wildfire or hurricane evacuation, this can be particularly valuable, according to Christine G. Barlow, a chartered property casualty underwriter. This coverage typically lasts 30 days.

Covered: living expenses if your rental is uninhabitable

While your home is undergoing repairs due to a fire or other covered disascovers your possessions ter, your insurance comonly in the case of specific pany will usually pay for you scenarios, or “named perils” to maintain your normal listed in the policy — things standard of living somelike fire, theft and wind. “If where else. something’s not mentioned

A “normal standard of in that list, then there’s no living” is broader than you. coverage,” Barlow says. might think. For instance, if For example, flood damyou live in a rental home age is almost always exwith a pool that you use cluded from renters policies every day, “the carrier needs and typically must be purto put you someplace where chased separately. One exyou have access to a swimception: USAA, which ming pool,” says Barlow, serves military families, inwho is also managing editor cludes flood coverage with at FC&S Expert Coverage standard renters policies. Interpretation, a trade publication. If you have pets, your insurer should find you pet-friendly accommodations or board the animals where you normally would.

Not covered: common disasters

Most renters insurance

Not covered: brand-new stuff

Madvin recommends asking whether replacement cost coverage is included in your policy. If not, your belongings are covered only for their depreciated value, which often isn’t enough to buy brand-new replacements.

Say your 10-year-old TV is stolen and replacement cost isn’t included. “The carrier’s going to say, ‘OK, you paid $1,000 for it 10 years ago; we’ll give you $250 for it now,’” Madvin says. With replacement cost coverage, you’ll receive enough to purchase a new TV.

Not covered: expensive valuables

Most renters policies cover jewelry and other costly items only up to a specific limit named in the policy, typically $1,000 to $2,000. So if you have an expensive engagement ring, for example, both Madvin and Barlow recommend adding separate coverage for it. An appraisal is usually required.

How to avoid surprises

Before buying renters insurance, take inventory of your belongings. “Most renters underestimate how much stuff they have,” Barlow says, which can leave a coverage gap. Barlow recommends using the Encircle app to upload photos of your belongings and estimate their worth. Other similar apps include Sortly a n d A l l s t a t e ’s D i g i t a l Locker.

Read your policy thoroughly. Barlow suggests marking it with what’s covered in green and what isn’t in red. Madvin advises paying particular attention to the policy’s endorsements, which are typically add-ons or exclusions to standard coverage.

Confused by all the legalese? Turn to an expert. Talking through your options with an insurance agent or broker can ensure you understand the policy you’re buying. “Unless you really know insurance,” Barlow says, “it’s very easy to miss coverages that you need or to not realize something isn’t covered.”

All that fine print in your policy likely includes coverage you might not expect, which could save you money down the line.