Many renters believe that their insurance coverage covers every eventuality until they experience unexpected losses. Renters insurance generally covers personal possessions, liability, as well as temporary living expenses; however, it also has substantial gaps. Understanding “What Isn’t Covered by Renters Insurance?” you are entitled to is vital to avoid expensive unexpected costs. Natural calamities to costly items, we will focus on the primary limitations and how you can overcome such to ensure you are covered.
What Renters Insurance Usually Covers
Personal property is usually covered by renters insurance, along with liability for damages or injuries and even additional repair expenses in case your apartment becomes uninhabitable. But, restrictions on renters' insurance make certain situations beyond the scope of standard coverage.
Read more: Tenant Insurance
The Top Things Not Covered By Renters Insurance
Natural Disasters
Most cases of renters insurance coverage fail to include natural calamities such as floods, earthquakes, and landslides. The conventional policies include windstorms or fires, but floods caused by rivers or even heavy rainfall are a separate program, which was termed the National Flood Insurance Program. In the same way, earthquake damages aren't protected unless you purchase an individual policy or riders. If you reside in an area that is region that is susceptible to earthquakes or floods and are excluded from coverage, it could make you vulnerable to damage without protection.
Pest Infestations And Mold
Pest infestations like termites, bed bugs, or cockroaches are typically thought of as maintenance issues and are not covered by insurance for renters. The mold exemption does not apply unless such is created by an insured risk, like a burst pipe. Pest control is typically the responsibility of the landlord, but sometimes the renters may need to pay a fee to exterminate them. Avoid risk by maintaining a clean living area and informing the landlords about any issues promptly.
Valuable Items Over Policy Limits
Jewellery, collectors' items, or fine art usually have lower coverage limits (e.g. $1,500 in the case of jewelry). Exclusions from renters insurance for precious items could mean that you will require a scheduled personal property insurance to safeguard expensive objects. This policy guarantees the full value of replacement for certain items of high value. Be sure to document these items with appraisals and receipts in order to facilitate the process of submitting claims.
Business Equipment and Activity
If you own an office from home, the equipment, such as computers or inventory, isn't covered by normal renters insurance. The risk of business-related actions, such as the possibility of a client entering your office space, is also not covered. A separate insurance policy for businesses is required to safeguard the assets and liabilities of these businesses and ensure that your side business does not become an expense for your financial resources.
Illegal Acts or Intentional Acts
Damage that is caused by intentional or criminal acts, such as vandalism committed by the policyholder, or related to drugs, is not protected. Insurance is designed to safeguard against unforeseeable incidents, not intentional or criminal acts. In the event of attempting to claim these losses, it could lead to cancellation of the policy or legal penalties.
Structural Damage To Building
Renters insurance will not provide coverage for the building's structure. If a pipe bursts, causing damage to the walls, the insurance policy of the landlord will pay for repairs. However, your possessions are covered by the insurance policy. Clarifying the roles of landlords and tenants can help to avoid confusion during the filing claim procedures.
Final Thoughts
What Isn’t Covered by Renters Insurance? Renters insurance is a solid protection for tenants; however, its limits can put the tenant off guard. Whether it is natural disasters or expensive items, being aware of the exclusions will not leave you out of pocket. Being aware of risks that are not insured in renters insurance, you will be able to develop a plan to ensure that you will avoid financial mishaps, saving thousands of dollars in the long run! Summit Insurance provides the best renters insurance in Canada! Contact us now for more information!
