Renters Insurance: What's Covered and What Isn't

Three core things: personal property (your belongings, on a named-peril or open-peril basis), personal liability (if you injure someone or damage their property), and loss of use (temporary housing if a covered loss makes your unit uninhabitable). It does not cover the building structure — that's the landlord's policy. Choose replacement-cost rather than actual-cash-value coverage so you can replace items at today's prices.

Not automatically. A renters policy covers the named policyholder (and usually family members), but a roommate you're not related to generally needs their own policy — sharing one can complicate claims and liability. If you and a roommate want to share, list both as named insureds, but separate policies are usually cleaner and inexpensive.

Usually yes for your damaged belongings — if a neighbor's overflow or a building leak ruins your property, your renters policy's personal-property coverage typically applies, subject to your deductible. Your insurer may then pursue the responsible party. What renters insurance does not cover is flood (rising surface water), which needs a separate flood policy.

Yes — personal belongings stolen from your car are generally covered by your renters (or homeowners) policy, not your auto policy, since auto insurance covers the vehicle and its built-in equipment but not loose contents. File a police report and claim it under renters, subject to your deductible and any category sublimits (electronics, for example).

Generally no. Bed bugs, rodents, and insect infestations are considered maintenance and pest-control issues, which renters policies exclude. Depending on your lease and state, extermination may be the landlord's responsibility. Renters insurance is designed for sudden, accidental losses — not infestations.

Often partially. Your belongings usually retain some coverage in transit and at a new location during a move, but limits and terms vary, and damage caused by a moving company is typically the mover's liability, not your renters policy. If you're making a big move, ask your insurer how coverage applies in transit and consider the mover's valuation coverage.

The liability portion often covers dog-related injury claims, similar to homeowners — but many insurers exclude certain breeds or a dog with a bite history. If you have a dog, confirm your policy doesn't exclude it and consider whether your liability limit is high enough. Damage your pet does to the rental itself is generally not covered.

Not by law, but landlords increasingly require it in the lease, and it's inexpensive relative to what it protects. Even when it's optional, it covers your belongings and — importantly — your personal liability, which the landlord's policy does not extend to you. For most renters it's worth having regardless of whether it's mandated.