Under What Circumstances Does Renter's Insurance Cover Fire Damage?

1/4/2022 (Permalink)

Keep these tips in mind about Coverages. If any doubt arises, please contact us.

When you rent your home in Rocky Mount, NC, you may wonder exactly what your renters insurance covers if a disaster like a fire, occurs.

After all, insurance is rarely ever straightforward. There are several different types of coverage on this insurance policy, each focusing on different types of damage and loss that can be sustained due to fire. These not only include property damage but also some bodily injury.

Your insurance should cover the following:

1. When Your Personal Property Is Damaged or Destroyed

Your insurance policy will cover your personal property that's damaged or destroyed in a fire. Insurance coverage typically pays replacement costs instead of actual cash value. This is usually the best way to go because it will make it easier to replace the property by giving what it costs to replace it versus depreciated value.

Personal property coverage doesn't require the fire to have originated in your home. Your property doesn't even have to be in your place of residence for it to be covered. They'll be covered up to your coverage limits. You can find these on the declarations page of your insurance policy. You will also be expected to pay whatever your deductible amount is before the insurance company pays anything.

2. For No-Fault Minor Medical Payments to Others

Medical payments that are insignificant enough that the fault doesn't have to be proven are listed as medical payments to others on your renters insurance policy. These payments don't require any proof of fault and can be paid quickly to cover minor medical costs resulting from your fire.

3. For Negligent Liability of Bodily Injury or Property Damage

Your insurance policy will cover fire liability. If you negligently cause a fire, your liability coverage can cover others who are not on the policy. This includes those individuals who have sustained bodily injury or property damage due to your fire. For example, this insurance will cover someone who has to go to the emergency room for smoke inhalation. It will also cover the costs of repairing damage to someone else's property (including the structure itself), for which a fire damage restoration company has to be hired. It must be proven to be an accident. Your insurance policy may even pay some legal costs.

4. When You Are Displaced From Your Home

Your insurance policy will also cover loss-of-use. This coverage is designed to pay your living expenses when you are displaced from your home due to excessive fire damage. This coverage will pay for living expenses the loss mandates, such as staying in a hotel or other temporary housing, food and transportation, until the fire restoration work is completed.

One positive thing about renters insurance is that it will typically cover circumstances other than a fire caused by your negligence. For example, it will include a fire originating from a different peril, such as a lightning strike. It will also cover smoke damage in the same circumstances as it does fire damage. When you're renting your home, it can provide some peace of mind to know that everything won't be lost if the worst happens.