What Items Are Covered Under Renter's or Home Insurance?

When you enroll for renter's or home insurance, you may have a good idea of what you may get for a deductible or what your policy may be good for. Most of the time, they usually cover items that are lost or stolen due to damage or burglary. If you don't know what's covered in a standard insurance policy as far as your belongings are concerned, you are not alone. You might be wondering about such things as whether there is insurance for an engagement ring or the like. The basic answer is that it may depend. Some items may be covered under your policy and some may not be for one reason or another. So whether you are moving into your first rental home or learning how to buy rental property, consider these aspects regarding how your insurance policy works in these situations.

What is usually covered under an insurance policy?

Personal property items that are covered under a renter's or home insurance policy typically include—but are not limited to—things like furniture, electronics, clothing, sports equipment, jewelry, art, silverware, snd collectibles. Some items such as jewelry and art can be covered under your current insurance policy if they are below a specific amount. For example, if you choose an engagement ring that is valued at $1,000 and the maximum value it can be covered is $2,000 then it's covered. If the engagement ring exceeds the maximum value for allowable coverage, the insurer will not pay for the amount needed for it to be replaced if it were lost, damaged, or stolen. For this reason, you may want to consider purchasing a separate insurance policy. The same can be said for other valuables that may exceed the maximum allowable value. Be sure to get a price or appraisal on any items so you know what is covered under your rental or homeowner's policy and what should be included in a separate insurance policy if needed.

What types of loss/damages are covered, and what isn't covered?

Your insurance will likely cover many types of loss and damage scenarios that your items may sustain. Typically, theft is one of those types of losses that will be covered; but what about other situations such as damage to the apartment or the home? Perils such as fire, storm damage, and the like will usually be covered; but it may depend on the insurer. Also, accidental damage to property may also be covered. What your insurance will not normally cover is usual wear and tear. If time and nature take its course and something is rendered useless, you will probably be required to replace it at your own expense. Also not covered is damage made by bugs, rodents, and other vermin as well as acts of war or terrorism (which is hopefully never the case). There may also be circumstances that are not covered by your renter's or homeowner's insurance program. For example, if your home is in a flood zone, your policy may cover personal item damage but not the home itself from any flooding. Likewise, flood insurance may include coverage regarding property damage. The issue here may differ from one insurer from the next, and that's why it is so important to read the fine print prior to signing onto any insurance policy.

How much can you get paid if your items are damaged or lost?

Once you file a claim and it's approved, you will likely be paid in one of two ways by your insurance provider: replacement cost or cash value of the item. Replacement cost refers to the price of the item and what you paid for when you bought it, whereas cash value may be based on a price of an item that you bought as if it were used. Keep in mind that the price would decrease because the value of an item will depreciate over time. This is important for items such as jewelry and other similar items.

Can you get the coverage you (and your personal property) deserve?

If you are looking to cover your bases with the right kind of home or renter insurance, you want to confirm which types of personal items are covered (and the types of loss or damage that covers it). Sometimes, you may need insurance that is dedicated to covering a specific item and sometimes you won't, but it is always far better to check on that sooner rather than later.