When you purchase insurance, you hope it will save you in a time of need. You typically pay a premium every month to have insurance. So you really hope that it will be worth it when you need to use it. It is important to understand your insurance policy to to know what it will cover and what it will not cover. There are some situations that are not covered by renters insurance.
Natural Disasters not Covered by Renters Insurance
Renters insurance policies usually do not cover natural disasters. For example, if a flood or an earthquake damage your personal property, a renters insurance policy most likely will not compensate you for lost or damaged belongings. If you live in an area prone to natural disasters, you may be able to purchase a separate policy that could cover you in specific natural disaster-type situations such as earthquakes in California.
Bed Bugs or Roommate Possessions not Covered by Renters Insurance
If bed bugs or rodents damage your personal property, your renters insurance policy will likely not help you. Many insurance companies see bug infestation as a maintenance situation which is why you would likely not have any coverage in these cases. Additionally, your renters insurance policy will not cover your roommate’s possessions. Because your name is associated with your policy, coverage applies to your possessions.
Car Theft or Damage not Covered by Renters Insurance
You cannot expect your renters insurance policy to protect you when there is theft or damage to your car. It is your automobile insurance policy that protects you in these instances. Renters insurance may cover you if one of your possessions is stolen from within the vehicle.
As you look to purchase a renters insurance policy, be sure to ask questions about what your policy covers. By knowing what it will not cover, you will reduce unexpected surprises when you are in a time of need.