Renters Insurance policy, which is also called named perils policies, is a financial protection policy that protects your personal belongings against loss due to specific reasons such as damage, destruction, theft, etc. The policy's essence is to ensure that the insurance provider will be responsible for the cost of replacement for that property in the event of a loss. It can cover various personal belongings, all of which are usually stated. The policy should cover any belonging that you may find expensive to replace in case of loss. The renters' insurance policy usually outlines the causes of loss covered by the insurance, and one of the common causes is water damage. Here, we examine all the things you should know about renters insurance and how it protects your personal belongings in case of water damage.
What Kind of Water Damage Does Renter Insurance Cover?
Renters Insurance serves to protect your personal belongings from damage from specific sources. The insurance policy will usually state the potential sources of water leaks and accidental discharges that will be considered. In most cases, it includes radiators, plumbing, and air-conditioning. Thus, if your washing machine should malfunction or a pipe should burst and cause damage, you can claim for the loss of your personal property. Therefore, renters insurance will protect your property damaged by water leaks. This includes ceiling leaks such as when water drips from the roof or another apartment spoil your property. Toilet flooding is also covered under the renters' insurance policy as long as such flooding is an accidental discharge or overflow. Your insurance policy may not cover the flooding caused by long-term clogging, which you could have prevented.
Water Damage Liability
Although renters insurance is generally to protect your property in case of damage, there are instances where it may also be used to protect yourself from liability resulting from water damage. In such cases where accidental water overflow or discharge in your building affects a neighbour, thereby making you liable to replace the neighbour's damaged belongings, you can use renters insurance to cover the financial liability and remediate your neighbour. Another scenario where you may have to file a claim for damages that are not personal is when the water overflow damages your apartment floor. The landlord decides to file a lawsuit compelling you to repair it. In that case, the renters' policy will cover the legal costs and, if you lose, the liability cost. Of course, it will only cover the maximum amount.
Exceptions To the Coverage
As wide as the renters' insurance policy on water damage may seem, it does not cover all types of damage. A notable exception is that it does not cover any damage to your personal property that is due to flooding. Your landlord and renters insurance provider are not liable for such damage. You will need to get a specific flood insurance policy if you are worried about the possibility of flooding. The National Flood Insurance Program is a good avenue to get this policy. However, renters insurance will protect your property from storms and rains in particular situations. For example, if a violent wind or storm causes your window to break and water gets in, the renters' insurance may cover the damage. Also, where a storm destroys your home, the renters' insurance will provide living expenses till you find another home arrangement.