Renters Insurance for Water Damage: Are You Covered?

Your toilet overflows. A water pipe bursts. The roof leaks. While you deal with the mess, you wonder whether your renters insurance will cover the damage. The answer is complicated! While renters insurance for water damage is available, there are a few variables that determine whether or not you have coverage.

Renters vs. Landlord Insurance

Rental properties generally require two forms of property insurance:

• The landlord’s insurance covers the landlord’s property. This includes the building structure itself and may include various permanent fixtures and appliances the landlord provides.
• The renter’s insurance covers the renter’s belongings. This includes all the furniture, electronics, kitchenware, clothes, and other personal property belonging to the renter. Renters insurance also typically provides some liability insurance.

When property damage occurs, both the landlord and the renter may need to file claims on their policies. The landlord files a claim to cover repairs to the building and repairs or replacements of permanent fixtures and appliances, whereas the renter files to cover damage to personal belongings. However, there may be complications depending on the circumstances.

Complicating Factor

• Was the damage caused by a covered peril? The loss must be due to a covered peril for the insurer to pay the claims. However, even if the source is a covered peril, the policy may or may not provide coverage depending on the specific type of water damage. (See more on this in the next section.)

When Does an Insurance Policy Cover Water Damage?

Coverage for water damage is a tricky insurance matter because there are so many possible scenarios. Water may come from a burst pipe or faulty appliance. It may seep in through a leak in the roof. It may overflow from the sewage system. It may inundate a property when the entire region floods due to storm surges or rainfall. Coverage varies depending on the cause.

To understand what your insurance includes and excludes, it’s important to read your policy terms. In general, a standard renters insurance policy typically includes coverage for water damage caused by burst pipes, roof leaks, and sudden and accidental leakage from appliances, including toilet overflow.

However, renters insurance typically excludes coverage for the following causes of water damage:

• Flooding
• Sewer backups

Protecting Yourself from Water Damage Costs

A little water can do a lot of damage. There are a few things to do to protect yourself:

• Buy renters insurance. Renters benefit from both the coverage for personal property and the liability coverage. Many landlords require renters to have coverage.
• Take an inventory of your belongings. Many renters are surprised when they add up the value of all their belongings. An inventory will help you determine whether you have enough coverage – you may need to raise your limits or schedule high-value items. Having an inventory will also be useful if you have to file a claim.
• Consider adding extra coverage types and endorsements. For example, you may be able to add an endorsement to secure coverage for sewage backups. Also consider buying flood insurance.
• Take basic precautions. If your negligence causes water damage, your insurance may not cover the damage. Close your windows during rainstorms and don’t flush anything other than toilet paper. Also make sure you fix any leaks promptly – keep documentation of your requests for repairs.
• Report and respond to any water situations promptly. Water damage situations can quickly escalate. Fast response is essential. Notify your landlord and your insurer immediately. Take photos and videos of the damages. If it’s possible to safely do so, stop or contain the flow of water while you are waiting for your insurer and/or landlord to respond.

Do you need renters insurance for water damage? We can help! Find an agent.