Does Renters Insurance Cover Fire Damage?

Renters insurance typically covers fire damage and smoke damage.^[1] Your policy may also pay for temporary housing if your apartment becomes uninhabitable after a fire. But precisely what a plan covers depends on your specific renters insurance policy.

Learn what renters insurance usually covers after a fire, what it doesn’t cover, how to report a fire damage claim, and how much reimbursement you might expect.

Fire coverage for renters

A renters insurance policy typically includes three main components. Personal property coverage (or contents coverage) pays to repair or replace your belongings if a fire damages or destroys them. Liability coverage protects you financially if you cause damage, and loss of use coverage helps with extra costs if you have to live somewhere else during repairs.^[2]

The upcoming sections discuss what renters insurance covers when there’s fire damage. To summarize, renters insurance covers:

• Damage to your personal belongings

• Additional living expenses

• Fire damage outside your apartment, if you’re liable

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Damage to your personal belongings

Renters insurance personal property coverage typically protects your belongings from fire and smoke damage. Some examples of covered contents include:

• Furniture

• Electronics

• Clothing

• Decor

• Small appliances

Depending on your policy, contents coverage reimburses you for either your property’s actual cash value (ACV) or replacement cost value (RCV). ACV is an item’s value minus depreciation from age and normal wear and tear. Replacement cost value doesn’t factor depreciation into your claim payout, so you receive a higher settlement.^[3]

Additional living expenses

Renters insurance covers loss of use, also called additional living expenses. This portion of your policy covers living expenses — like temporary housing, hotel costs, meals, parking, laundry, and other essentials — above what you’d ordinarily spend while your rental is repaired after a fire.^[4] Some policies may refer to this as relocation coverage or emergency living expenses coverage.

Additional living expenses coverage is subject to a policy limit, or a maximum amount your insurance company will pay for your temporary living expenses. Loss of use coverage might include a deductible, and your policy’s coverage limits and deductibles may vary.

Fire damage outside your apartment

Your renters insurance protects you if a fire in your apartment spreads to another unit or damages shared building property. Liability pays to repair the building, replace other tenants’ belongings, and cover their medical expenses if they’re injured by a fire you accidentally cause.

Below are examples of external fire damage typically covered:

• Kitchen fires that spread to a neighbor’s apartment

• Electrical fires that damage common spaces

• Smoke damage

Renters insurance covers only sudden and accidental fire damage and smoke damage. It doesn’t cover intentional fire damage, like arson.

Types of fire damage your renters insurance covers

Renters insurance covers the following types of damage, including:

• Direct fire damage

• Smoke damage

• Water damage

• Property damage caused by firefighters

Fire damage coverage limits depend on your insurance company and policy. Coverage varies based on your insured property amount, your deductible, and whether you have replacement cost or actual cash value coverage.

Fire damage your renters insurance won’t cover

These are some common renters insurance exclusions for fire damage:

• Structural damage: Renters insurance covers only your personal property, not structural damage. Your landlord’s insurance policy pays for structural damage and damage to shared spaces, like lobbies and hallways. But if you accidentally cause a fire, your liability coverage may help pay for those damages.

• Intentional fires: Your renters insurance won’t cover damages if you deliberately set a fire.

• Renter negligence: Renters insurance won’t pay for damage caused by renter negligence. For example, your insurance company may exclude fire damage if you disable your smoke alarm, lack a fire extinguisher in your rental, or don’t have a smoke detector.

How much will renters insurance reimburse you for fire damage?

Your reimbursement amount depends on several variables. These include your policy limits, deductible, and whether you have replacement cost or actual cash value coverage. ACV subtracts depreciation from your payouts, and RCV doesn’t.

For example, imagine you bought a sofa for $3,000 five years ago and it’s damaged in a fire. An ACV policy might give you only $2,000 to replace it, accounting for its reduced value due to age. In contrast, an RCV policy would replace your sofa at today’s prices.

Deductibles also affect your claim payout. Policies with lower deductibles have higher claim payouts, but also higher premiums. For instance, with a $500 deductible, your insurance would subtract $500 from your settlement.

Creating a home inventory is a smart way to catalog your belongings in case you need to file a renters insurance claim.

Factors that affect how much your insurer will pay

Several factors determine how much your renters insurance policy will pay after a fire, including:

• Your policy’s coverage limits: Renters insurance reimburses you up to the coverage limits of your policy. If you have a fire claim and your personal property coverage is $25,000, your insurer will reimburse you up to that amount, minus your deductible.^[5]

• Whether you have replacement cost or actual cash value coverage: Replacement cost coverage policies provide higher claim payouts than ACV policies since they don’t subtract for depreciation.

• Your deductible: A deductible is the money you pay out of pocket when you have a covered loss. Policies with high deductibles have lower claim payouts, whereas policies with low deductibles have higher payouts.

• Value of certain items: Renters insurance policies often limit coverage for valuable items, like fine art and jewelry. You can add an endorsement if you need more coverage for certain high-value items.

• Whether you provided a complete inventory: A home inventory with photos and receipts can speed up the claims process and maximize your claim settlement.

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How to file a renters insurance claim for fire damage

If a fire damaged your personal property, follow these steps to file a renters insurance claim:

• 

  1. Contact your insurance company

  Notify your insurance company immediately. A rep will walk you through the claims process and tell you how much fire damage coverage your policy includes.

• 

  2. Document all fire and smoke damage

  Take photos and videos of the damage to your rental unit as soon as it’s safe. The fire or police department may be able to provide a report for you to share with your insurance company.

• 

  3. List damaged items

  Inventory your damaged and destroyed items and estimate their original value. Gather receipts if you have them, and provide serial numbers for expensive items, like computers.

• 

  4. Submit claim forms and photos

  Write a description of what happened and what was lost. Check your policy documents for additional requirements, and include photos or videos of the fire damage.

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  5. Track your claim

  Stay in contact with the insurance adjuster throughout the claims process. The adjuster will let you know if additional information is needed. Once your insurer approves your claim, you’ll receive your settlement.

Renters insurance fire coverage FAQs