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Renters insurance is a type of homeowners insurance that replaces your belongings if they're damaged or stolen in your rental. Renters insurance only covers damage to your personal belongings; damage to the building and structure is the responsibility of your landlord.

If you need to make a claim with your renters insurance, it's important to file in a timely manner and document damage. Failure to timely notify your renters insurance could result in a denial of your claim.

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How to file a claim with your renters insurance company

There are two components to renters insurance: personal property coverage and personal liability coverage. If you're forced out of your home due to damage to your rental, you may also be eligible for loss of use or additional living expenses. When filing your claim, it will fall under one of these three categories.

If you experience loss or damage due to an insurance peril, Steve Wilson, senior underwriting manager at Hippo Insurance recommends staying in touch with your renters insurance company to let them know what's going on at your rental. 

Take the following steps when submitting renters insurance claims:

  1. Contact the insurance carrier to file a claim in a timely manner. 
  2. If you think your home is uninhabitable, contact your carrier before leaving your home. Don't assume loss of use or additional living expenses will apply until you speak with your carrier.
  3. If theft or loss occurred, you should file a police report as some carriers will require this. If you have separate jewelry insurance and your jewelry is stolen or lost, you will also need to contact that carrier.
  4. If damage was due to flooding, contact your flood insurance carrier. Flood insurance is separate from renters insurance.
  5. Take pictures of the damage before disposal and cleanup. 

You can call the claims number on your renters insurance policy or make a claim online on your carrier's website. Due to the coronavirus pandemic, many carriers have digital apps to file claims where you can upload pictures of damage for faster processing.

Your claim must be a result of an insurance peril

Damage to your personal property must be due to an insurance peril. Although water damage is covered, flooding is not included as a covered insurance peril and requires separate flood insurance. Common insurance perils include:

  • 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
  • Volcanic eruption

Remember, damage to the building, structure, and apartment are the responsibility of your landlord.

Also keep in mind that there are limits to your renters insurance coverage. Basic personal property coverage for renters is between $20,000 and $30,000, depending on the value of your belongings. 

Unless you've increased your limits, your claims will be subject to those limits, minus your deductible. Remember, certain items like fine art, jewelry, high-end electronics, and cash may require add-on coverage.

Coverage Included with renters insurance?
Dwelling/Structure No - landlord responsible
Personal liability Yes
Personal belongings Yes
Loss of Use (additional living expenses) Yes
High-end electronics/special jewelry Limited, requires add-on*
Roommates No
Cyber liability Yes*
Water damage Yes
Flood No**
Wind or hail Yes
Earthquake No*
Pets Yes*

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

Renters in disaster-prone areas may have additional requirements

If you live in a disaster-prone area — such as a part of the country where hurricanes or tornadoes are common — you may need additional riders or separate policies for natural disasters. 

Earthquakes, floods, government seizures, mudslides, ordinance updates, sewer backups, and sinkholes are all perils that won't be covered by renters insurance, according to Hippo Insurance. Those will require add-on coverage using a rider policy. Flood insurance is a separate policy.

If you have a separate policy for flood insurance and your rental has flood damage, you will need to file a separate claim with that carrier. Do not assume that your renters insurance carrier is in contact with your flood insurance provider.

Actual cash value vs. replacement cost

Renters insurance policies typically use "replacement cost" when paying out for covered damage. Replacement cost is the cost to replace the item with a new or used product. 

Actual cash value (ACV) takes into consideration depreciation of the item. For example, if a five-year-old leather sofa is damaged by fire, the actual cash value considers the age of the sofa. Actual cash value is usually lower than the replacement cost value. Flood insurance typically uses actual cash value.

For specialty jewelry and fine art, you will be covered for the appraised value minus any deductible assuming you purchased a rider. 

Renters insurance premiums may increase after filing a claim

Filing a claim may increase your insurance premium based on the number of claims previously filed or the amount of damage claimed. This is especially true if you have had a dog bite or liability claim that resulted in a lawsuit. Some carriers will even drop customers if their pet bites or injures someone.

Talk to your renters insurance provider to find out how filing a claim may impact future premiums.

Will renters insurance cover relocation?

"Loss of use" coverage, also known as "additional living expenses" or ALE, is included in most renters insurance policies and provides reimbursement for temporary housing when a peril causes damage making your rental unit inhabitable. 

For "loss of use" and "additional living expenses," much depends on your insurance carrier and it varies by provider. Some carriers will reimburse you for temporary housing. Others may have a list of housing alternatives.

If you're considering leaving your rental due to damage, contact your renters insurance provider first and take detailed pictures of the damage. Make sure to lock up and secure the premises as well.

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Ronda Lee
Associate Editor, Insurance

Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. Before joining Business Insider, she was a contributing writer at HuffPost with featured articles in politics,...

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