Renters Insurance Before Winter: What It Covers and What It Doesn't

A lot of renters assume the landlord's insurance has them covered. It doesn't. As the New Jersey Department of Banking and Insurance puts it, the landlord's policy takes care of the building's structure, not the things inside your unit. With winter on the way in St. George, Pocatello, Idaho Falls, and Tucson, now is a good time to check what a renters policy actually does for you.

The Three Main Parts of a Renters Policy

According to the National Association of Insurance Commissioners (NAIC), most renters policies include three kinds of coverage:

• Personal property. Helps pay to repair or replace your belongings if they're damaged, destroyed, or stolen. Many policies cover your things outside your home too, like items stolen from your car or a hotel room.
• Liability. Helps protect you if a guest is hurt in your home or you accidentally damage someone else's property. Many policies also include medical payments coverage for an injured guest.
• Additional living expenses. If a covered loss makes your place unlivable, this helps pay for a hotel or temporary housing. The NAIC notes it pays only the difference between your normal costs and your temporary ones, not all of your living expenses.

Winter Gaps to Know About

Read the exclusions before you need them. Regulators point out a few that matter this time of year:

• Frozen pipes. Sudden water damage, like a burst pipe, is often covered. But New Jersey's insurance regulator lists freezing pipes as excluded when the heat or water wasn't kept on. If you travel over the holidays, keep the heat on.
• Weight of ice and snow. This is a listed covered loss on many policies, which helps if a roof or awning gives way.
• Floods and earthquakes. Standard renters policies usually don't cover either, according to the Oregon Division of Financial Regulation. Flood coverage for your belongings is available through the National Flood Insurance Program, and earthquake coverage can sometimes be added as an endorsement.
• Damage to the unit itself. Oregon's guide notes liability coverage usually doesn't pay for damage you cause to the rental, other than fire and explosion. A leaking aquarium that ruins the carpet may be on you.
• Mold, pests, and wear and tear. These are typically excluded unless the mold came from a covered loss.

Actual Cash Value vs. Replacement Cost

This choice makes a big difference when you file a claim. Actual cash value pays what an item is worth today after age and wear. Replacement cost pays to replace it with a similar new item. The NAIC's example: a five-year-old computer that cost $2,000 might only be worth $500 under actual cash value, while replacement cost coverage would pay for a comparable new one. Replacement cost raises your premium a bit, but it's usually worth pricing out.

How to Shop for a Policy

1. Take a quick inventory. Walk through your place with your phone and record video of what you own. It helps you pick a coverage amount and makes a claim much easier.
2. Check your lease. Some landlords require renters insurance and a minimum liability limit. Make sure your policy meets it.
3. Compare coverage, not just price. Oregon's regulator says most policies run about $15 to $30 a month and warns that the cheapest quote isn't always the best one.
4. Ask about riders. Jewelry, instruments, or expensive electronics may need extra coverage, called a rider or floater.
5. Pick a deductible you can afford. A higher deductible lowers your premium, but you'll pay that amount out of pocket on a claim.

Questions about a policy or an insurer? Your state regulator can help: the Utah Insurance Department, the Idaho Department of Insurance, or the Arizona Department of Insurance and Financial Institutions.

Moving Soon?

If you're looking for a new place before winter sets in, you can browse current rentals in Southern Utah, Eastern Idaho, and Tucson on RentDuck. Line up your renters insurance before move-in day so you're covered from the first night.

Sources: National Association of Insurance Commissioners, "Renting Your Home? What You Need to Know About Renters Insurance"; Oregon Division of Financial Regulation, "Consumer's Guide to Renters Insurance"; New Jersey Department of Banking and Insurance, "Renters Insurance."