Renter’s insurance is in place to help you cover unexpected events – or perils. Home fires, which occur every 87 seconds on average in the U.S., is one of those perils.1 Once that’s been established in the event of a fire, renter’s insurance will respond, the question many renters have next is “What is covered in the case of a fire under my renter’s insurance?”
Should there be a fire, renter’s insurance will cover the following:
Personal property. A renter’s personal property and belongings caught in the fire are covered under a rental insurance policy. Rental policies will either pay the replacement cost or the actual cash value of items. A replacement cost endorsement in your renter’s policy means you will be reimbursed for what it costs to replace an item, not the actual cash value of that item. This is a significant distinction. Make sure your rental policy specifies “replacement costs,” so you don’t get the actual cash value of your old stuff!
Liability. If you were inadvertently the cause of the fire, your renter’s insurance will cover your liability. It will cover any third party that is injured or suffers property damage due to the fire you inadvertently caused. The exception to this rule is if the renter started the fire intentionally. In the latter case, the fire and damage done will not be covered by your renter’s policy.
Medical coverage. If you or others are injured in the fire and medical care is required, it will be covered via your renter’s insurance. However, renter’s insurance medical coverage is limited. Renter’s insurance policies provide small no-fault medical coverage, which means fault is not required to be proven to cover a small injury.
Loss of use. In the case of a fire, renter’s insurance will also cover loss of use expenses. This includes additional living expenses you incur while you can’t reside in your rental, whether during the fire or after during property repairs. This could include a hotel stay or other overnight accommodations.
In the event of a fire, renter’s insurance will respond, coming to your aid. Work with your insurance broker to ensure your policy features the right endorsements and minimizes exclusions to maximize your coverage.
For more information on transferring your fire risk to renter’s insurance, contact your HUB personal insurance broker.
