If you’re renting your home, you’ll want to get renters insurance.
Landlords have insurance to cover the building and structure, but your belongings inside the rental unit are your responsibility. Renters insurance protects your personal belongings from damage and theft.
There are limitations to the coverage and it all depends on whether damage was caused by an “insurance peril.” An insurance peril refers to a specific event that determines whether or not you’ll be covered against damage. Common insurance perils include fire, storm, or theft.
Water damage
Water damage is covered if damage is caused by an insurance peril. Yael Wissner-Levy, vice president of communications at Lemonade Insurance, said that as a renter, you are protected from anything that suddenly causes water damage without any prior known issues, like the accidental overflow of water or steam from plumbing, heating, AC, or sprinkler systems.
You’re also protected if your apartment sprinklers go off and soak all your belongings, or if your pipes freeze in the winter and burst.
Renters insurance is a named peril policy and typically covers these events:
Fire or lightning; Windstorm or hail; Explosion; Riots; Aircraft; Vehicles; Smoke; Vandalism; Theft; Falling objects; Weight of ice, snow, or sleet; Accidental discharge or overflow of water or steam; Sudden and accidental tearing, cracking, burning, or bulging; Freezing; Sudden and accidental damage due to short circuiting; and Volcanic eruption.
What about mold damage
Mold is covered only when it’s related to a named peril (meaning it’s explicitly listed in your renters insurance policy as eligible for coverage), usually under the definition of “sudden or accidental.”
Lemonade offers the following examples of when renters insurance covers mold: If there’s a fire at your rental and the water used to put out your fire created a serious mold situation in your apartment, any resulting damages would be covered. If your AC unit suddenly breaks, floods your place, and creates mold ruining your stuff, renters insurance would also cover that.
Similar to homeowners insurance, if mold grows over time and isn’t related to a named peril, it isn’t covered. If you see mold growing over time, immediately address it with your landlord or property management company because it would not be covered.
It is always best to talk to your renters insurance company any time you have water damage.
How to file a claim for water damage
Steve Wilson, senior underwriting manager at Hippo Insurance, gave the following five steps for filing a claim for water damage with your renters insurance company.
1. Contact your renters insurance carrier.
2. Contact your landlord or property management.
3. Take pictures or video of the damage before disposal and clean up.
4. Prevent further damage by protecting your property — television, laptops, etc. — with plastic.
5. If your rental is no longer livable, ask your carrier about “loss of use” coverage. Most renters policies have “loss of use” coverage if you need to live elsewhere until your rental is livable.
Ronda is an attorney, writer, and entrepreneur. She is a contributing writer for the Huffington Post. Originally from Chicago, she has lived in Los Angeles and New York. She loves to travel and is passionate about education equity, especially for first generation college students.