Does Renters Insurance Cover Fire Damage?

Fire can cause damage and destruction in many different ways. It can destroy personal property, cause injuries, and even lead to potential liability issues. Further, all of these incidents can lead to financial losses without the right coverage. That's why it's critical to not only have the right kind of renters insurance but also to be aware of what it covers from the start.

An independent insurance agent can help you get a renters insurance policy or review your existing coverage with you. They'll ensure you understand exactly how your coverage protects against fire damage. But first, here's a breakdown of how standard renters insurance policies can cover fire damage.

Does Renters Insurance Cover Fire Damage to My Personal Property?

Fire is one of the most commonly named perils under renters insurance policies. Or, if your specific policy doesn't name covered perils, you probably have "all-risk" renters insurance, which would also mean you're covered if a fire damages your personal property. 

From a personal property perspective, renters insurance covers anything that was damaged or destroyed because of the fire up to the policy's limit. If you have a $25,000 policy limit and a $250 deductible, your insurer will pay you up to $24,750 to repair or replace your personal property that gets damaged or destroyed by the covered incident of fire. 

There's often a per-item limit on coverage that can differ depending on your policy. Keep in mind that a fire doesn't have to come from inside your home to be covered, and the item doesn't have to be inside your home to be covered, either. If the property is outside your home, you'll have less coverage, typically capped at 10% of your personal property coverage limit, but you'll still get some reimbursement as long as the claim is approved.

Does Renters Insurance Cover Fire Damage If the Fire Was Caused by Another Disaster?

Yes, you'll still be covered under renters insurance for a fire caused by another disaster like a lightning strike or something that isn't a named peril. One example is if there's a flood that somehow causes a fire. While floods aren't a covered peril, a fire that results from a flood would be covered. For example, imagine a flood knocked over a telephone pole onto your building, and the sparks led to a fire that began on your roof and spread throughout the home. 

Your renters insurance wouldn't cover the damage to the structure of your home, however. That would fall under landlord insurance since your landlord is responsible for the dwelling of the unit. But no matter the cause of a fire, unless you started one intentionally, your personal property and liability are covered by renters insurance.

How Does Renters Insurance Cover Liability Related to Fires?

The other half of renters insurance is liability coverage, which also applies when there's fire damage. Let's say you accidentally burn someone or their belongings. Maybe you left a candle lit in your apartment and started a small fire. 

If your insurer finds that you're responsible for the resulting damage, your renters insurance can pay for legal expenses if necessary. This could include medical bills and attorney and court costs, if there's a lawsuit, up to your liability coverage limit. 

Most renters insurance policies have a liability coverage limit of $100,000, but you can always pay for higher limits if you think you need the coverage. If you aren't sure, talk to an independent insurance agent to evaluate all of your options.

When Doesn't Renters Insurance Cover Fire Damage?

There are some exclusions in which renters insurance doesn't cover fire damage. The primary exclusion is if you intentionally started a fire. No intentional loss is covered by renters insurance, fires included. 

Another common exclusion is if the fire damages your unit's structure or dwelling, including the walls, flooring, or installations. These are losses your landlord will be responsible for under their landlord insurance. If, for some reason, your landlord's insurer comes after you for damages, your renters insurance company should assist you in handling the situation.

One additional note is that fire damage to your car isn't covered, but personal property in the car could be. But because the personal property isn't in your home, the coverage limit would be lower. To have protection for your car against fire damage, make sure you have comprehensive coverage under your auto insurance policy.

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What Else Does Renters Insurance Cover When It Comes to Fire Damage?

Renters insurance covers fire damage in a couple of additional ways. There are two common issues covered by standard renters insurance that are both related to fire damage:

• Loss of use: If the fire damage to your unit is extensive and you have to find temporary housing, renters insurance can cover additional living expenses like the cost of a hotel room or even commuting to work.
• Smoke damage: Smoke damage is a separate covered peril but is related to fire damage. If resulting smoke from a fire damaged your personal property, your renters insurance could provide coverage for this as well.

Score Renters Insurance Discounts by Practicing Fire Safety

Your renters insurance is likely already quite affordable, but there are easy ways to reduce its premiums even further. Most renters insurance companies offer common discounts for measures taken to reduce the risk of fire damage. 

Discounts may be available for having a sprinkler system in your home, having a fire extinguisher, or having smoke detectors and carbon monoxide alarms present. When shopping for coverage, your independent insurance agent should automatically ask you these questions to search for all the available discounts you may qualify for.

Why Work Together with an Independent Insurance Agent?

A local independent insurance agent can be your greatest ally when it comes to finding the best renters insurance around. They'll shop and compare policies from multiple carriers that offer coverage in your area to find the best available rate and top-quality protection. And down the road, they'll still be there to help file claims for you or update your coverage.