Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Will Renters Insurance Pay My Security Deposit

There are a lot of things that renters insurance covers, but your security deposit isn’t one of them. You see, renters insurance is meant to cover the cost of your possessions. Your apartment or rental home isn’t something you own; therefore, the security deposit simply doesn’t fall under that coverage.

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If something happens to your home and it becomes unlivable either temporarily or permanently, your renters insurance will cover your relocation costs. This is one of those rare cases where the renters insurance may pay your security deposit, in the event you are forced to move because your home becomes unlivable.

If you want to learn more about what your renters insurance will cover as well as some of the things that you should know before purchasing renters insurance, then you’ve come to the right place. Keep reading to find out important information that you should know.

What Renter Insurance Does and Doesn’t Cover

As mentioned above, there are many things that renters insurance covers, however, it would be much simpler to tell you that your renters insurance covers nearly everything you own.

  • Vehicles- It doesn’t, however, cover your automobile, boat or other vehicles that can be insured via other types of insurance.
  • Furs, Gold, Jewelry and Cash- In addition, your renters insurance typically won’t cover furs, gold, expensive jewelry or cash. On the rare cases that any of these items are covered, the amount of the coverage is usually far less than the actual value of the items.
  • Building Structure- Your renters insurance also will not cover the structure of the building that you are renting; that is the owner of the house, townhouse, condominium or apartment that you are renting responsibility.

renters insurance covers

Renters insurance will cover:

  • Items in Your Car- Even though your renters insurance doesn’t cover the cost of your actual vehicle, it does cover your personal items that are in the vehicle. If your vehicle is stolen or damaged in an accident, then your renters insurance will cover the items that were in there. However, most rental insurance policies have a deductible of at least $250, so there is the possibility that the total loss wouldn’t exceed the deductible costs.
  • Items in Your Storage Space- In addition, if you have a storage space, your renters insurance will cover the items located in there as well. When you inventory your items, don’t forget this important space.

Renters insurance does cover all of your personal possessions within your home as well, with exception of the items mentioned as well. You will need to create a comprehensive inventory of everything that you own to ensure that should the worst happen, you can get reimbursed for everything that you lose.

Renters insurance offers protection from theft, fire, vandalism, lightening, windstorms, hail, explosion, exploding pipes and more.

Your renters insurance will not cover loss or damage from floods or earthquakes; you will have to purchase a rider for this coverage and your renters insurance premiums will increase.

Your renters insurance will also cover any legal and medical costs that occur to someone who is injured in your home. This person cannot currently be living at your residence for this liability insurance to pay the benefit. The max benefit amount will be based on the liability coverage you choose when you purchase your renters insurance policy.

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What You Should Know Before You Buy

renters insurance covering security depositBefore you buy your renters insurance, you need to understand that there are two types of coverage, “actual cash value” and “replacement cost coverage.” Many people mistakenly choose the actual cash value coverage because, quite frankly, it sounds good. The problem is, those people don’t realize that the actual cash value coverage only provides benefits for the current market value of the item, not how much it would cost to replace that item.

Replacement cost coverage, however, is a totally different thing. With replacement cost coverage, your benefit is the cost of replacing that item completely. If the item in question is no longer available for sale, your insurance will agree to pay for a modern replacement of that item.

For example, if you bought your sofa in 1983 and a fire caused it to become unusable because of smoke damage, the insurance company will cover the cost of a new sofa. While that sofa may no longer be sold anywhere, you can get another sofa of the same brand, or comparable if it no longer exists, to completely replace that sofa.

In this same scenario, if you had actual cash value coverage, then the insurance company would take the original cost of the couch and at a depreciation equation to it to determine its value.  As you can imagine, that number wouldn’t be too high for a well-used 27-year-old sofa.

Another thing that you need to know is that you are going to have a deductible with your rental insurance.

Some companies allow you to choose no deductible, although this will raise your premiums considerably. Generally, you can choose between $250 to $500; although you may have more options with some insurance companies.

rental insurance - security deposit

Lastly, you need to understand that there is a cap on how much your insurance will cover. The good news is that you get to choose that cap. The higher the cap or your max coverage amount, the more expensive your insurance costs will be. Understanding the value of all of your possessions is important so that you aren’t left without certain things because you didn’t purchase enough coverage.

It is better to be safe than sorry in this instance, and adding $5,000 to $10,000 to your total after you have added together the total value of your possessions will ensure that you are prepared for inflation or changes to what you owe. If you purchase any new, high dollar items, make sure you keep the receipt and add that value to your renters insurance policy.

Buying Your Renters Insurance

Fortunately, renters insurance is very inexpensive and you can purchase a lot of coverage for very little money. There are a few ways that you can save money on your renters insurance, however.

If your rental property has any safety features, this will help to reduce your rates.

Insurance companies like to see fire extinguishers throughout the house, epically in the kitchen and the laundry room. They also offer discounts for homes that have smoke detectors and carbon monoxide detectors. In addition, they offer discounts to homes with anti theft alarm systems and security devices.

buying rental insurance

Nearly every insurance company offers discounts to customers who have more than one insurance policy with them as well. For example, if you have auto insurance with a specific company, they will offer you a discount for purchasing your renters insurance with them as well.

One thing that people don’t realize is that many insurance companies will not offer renters insurance if you own certain breeds of dogs. Most especially, they will not insure homes with breeds that are considered high risk for attacks. If you find an insurance company that will cover a rental home with a high risk dog, you will probably pay considerably more in premiums than someone without a dog at all.

Before you purchase your rental insurance, you want to take a few minutes to get a quote first. This will ensure that you get the lowest rate. Our free quote tool takes less than 10 minutes to fill out and then you will receive an instant quote. It is free and easy to use.

Get fast and FREE renters insurance quotes today! Simply enter your ZIP code into the FREE tool below!