Contents insurance is a key part of renters (and homeowners) insurance, and it provides financial protection for your valuable stuff in various situations. It’s sometimes referred to as “personal property coverage,” or “Coverage C.”
What is contents insurance?
Contents insurance is one part of your renters insurance policy. It covers the financial loss from damage or theft of things like furniture, laptops, clothing, and other valuables.
What does contents insurance cover?
Contents insurance covers your personal property against certain types of damage. In the insurance industry, bad things that can happen to your stuff that are covered by your policy are called “named perils.” For renters insurance, that generally includes things like:
- Theft and vandalism
- Fires
- Certain types of water leaks and water damage
- Windstorms
Some real life examples where contents insurance would help
Contents insurance can help in a wide range of scenarios, including some that you may have never thought about. Here are a few concrete cases in which you’d be able to file a claim:
- If a kitchen fire damages your rented home, contents insurance would cover the cost of replacing or repairing your belongings, up to the policy’s personal property coverage limit.
- Let’s say a burglar hits your apartment. Contents insurance would reimburse you for the stolen items, including high-value items like laptops and mobile phones.
- Contents insurance can help if your personal belongings are damaged due to a leak or other water damage (though flooding is excluded).
- If your partner’s angry ex decides to smash your window, or spray paints STELLA I LOVE YOU on your property, contents insurance will cover the repair or replacement costs.
In many cases, including with Lemonade Renters, your insurance company will compensate you for the replacement cost of your belongings, minus your deductible.
How much contents insurance do I need?
The amount of contents insurance you need depends on the value of the personal property that you’re trying to protect.
Do yourself a favor. Before signing up for renters insurance, take a look around your place and go over these three simple steps to save time (and money!) later:
- Stroll around your apartment, and take pictures (or a video) of your personal property
- Make a list of valuable items, and estimate how much they cost
- For bulk items like shoes, or kitchen supplies, give ’em a nice round number
- Add all of this up, and round to the nearest $10K to determine how much coverage you’ll need
For example, if you have $27K worth of items, you should choose a personal property coverage amount of $30K.
If you already have a Lemonade Renters policy, you can increase your coverage limits at any time—though doing so will affect your premium.
Other parts of your renters insurance policy
We mentioned that contents insurance is only a piece of your entire renters insurance policy. So what do the other pieces do? Well, there’s:
- Personal liability coverage: This protects you against claims arising from accidental injury to others or damage to their property while in your rented home.
- Additional living expenses coverage (aka ‘Loss of Use’): If you have to temporarily leave your rental due to a covered event, this will help pay for temporary accommodations, like a hotel or Airbnb, as well as certain expenses for food or laundry.
What contents insurance doesn’t cover
It’s essential to wrap your head around any exclusions in your contents insurance policy to avoid surprises when filing insurance claims. Some common exclusions are:
- Wear and tear or depreciation: Insurance policies generally don’t cover the cost of home items that have gradually deteriorated over time.
- Some valuable items, like expensive jewelry or artwork, may benefit from additional endorsem*nts or add-ons that provide extra protection—like coverage against mysterious loss, or accidental damage. That’s called “scheduling personal property,” and it can come in handy for things like engagement rings—learn a lot more here.
- Your policy documents will list specific perils that are not covered, such as earthquakes or floods.
Does contents insurance cover your family members or roommates?
At Lemonade, contents insurance (and your renters insurance policy overall) does not cover roommates who aren’t related to you. They’ll want to get their own policies—more on this here.
Blood relatives, as well as spouses, would be covered by your contents insurance.
How much does contents insurance cost?
The average price of a Lemonade Renters insurance policy in the US, as of early 2024, is around $14/month.
Your policy premium depends on things like the deductible and coverage limits you choose, as well as any valuables you’ve added to your policy (aka “scheduled”).
Basic renters insurance policies start with a personal property coverage limit of $10,000. Increasing that to $30,000 is usually a smart idea, and it likely won’t send your price soaring. Plus, it might mean that you’ll end up paying less out-of-pocket later in the event of a claim.
You can get your Lemonade insurance quote in just a few minutes by clicking the button below.
FAQs
Contents insurance covers your personal property against certain types of damage. In the insurance industry, bad things that can happen to your stuff that are covered by your policy are called “named perils.” For renters insurance, that generally includes things like: Theft and vandalism. Fires.
What is contents coverage renters insurance? ›
Contents insurance helps pay to replace or repair your personal belongings if they're stolen or damaged by a covered peril, such as a fire. So, if someone breaks into your home and steals your laptop, or your clothing and furniture are ruined in a fire, you may find that contents insurance helps cover the loss.
What are the downsides of Lemonade renters insurance? ›
While it offers some coverages not usually found with renters insurance policies — including property damage caused by pets — Lemonade does not offer coverage options for personal business property. It also does not offer identity theft protection, a common inclusion among some competitors.
What does contents insurance cover? ›
Contents insurance covers the cost of replacing or repairing your possessions if they are damaged, destroyed or stolen. It includes everything you would take with you if you moved home including your furniture, kitchen appliances, curtains, bedding, clothing, television, computing equipment and jewellery.
What is Lemonade renters insurance? ›
Lemonade renters insurance covers property damage caused by accidental fires. You can also purchase a separate fire insurance policy. This would provide you with extra coverage above your standard coverage limit and would also include fires caused by an event that isn't covered in a standard policy, such as a flood.
Is it worth having contents insurance? ›
It is a good idea to take out home contents insurance to cover your possessions against fire, theft and other risks, such as accidental damage. If something happens to destroy or damage your possessions, it can cost a lot of money to replace these items.
What is considered contents coverage? ›
Personal property coverage — also known as contents coverage on a home policy — helps cover the cost of your personal items if they are destroyed, damaged, or stolen due to a covered loss or peril. Personal property includes things like furniture, clothing, electronics, and kitchenware.
Does Lemonade actually pay out claims? ›
How will I get paid for a claim? After you complete the claim report on the Lemonade app, you will be asked to enter your bank account information. Once your claim is approved, we'll issue payment, minus the amount of your deductible, directly into your account.
Why is lemonade insurance so cheap? ›
Lemonade's use of AI and machine learning means it has lower overheads and can offer rates as low as $25/month. But that doesn't mean we've forgotten how important a human touch is. While AI Maya expertly handles our basic customer inquiries, we know the value of personalized interactions.
Is lemonade insurance trustworthy? ›
About Lemonade home insurance
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates discounts, coverage options, website transparency, financial strength, complaint data and more. Lemonade homeowners insurance earned 3.5 out of 5 stars for overall performance.
Most contents insurance doesn't include cover for accidental damage. It may be worth adding this if you want cover for mishaps, such as staining your couch or smashing a vase. Also check what isn't covered, for example, damage to clothing or computers.
Is a broken TV covered under contents insurance? ›
However, if you have contents insurance as part of your home insurance cover, you might be able to make a claim for your broken TV. Contents insurance can cover the cost of replacing your TV, and the other belongings in your home, if they get unexpectedly damaged, destroyed or stolen.
Does contents insurance cover a washing machine? ›
Standard home contents insurance only tends to cover your appliances if they're damaged in a natural disaster or another insured event. Specific home appliance insurance is not part of your home insurance. It covers white goods bought from a retailer for breakdowns and accidental damage.
Can I claim groceries on renters insurance? ›
Renters insurance may cover personal belongings damaged from a covered peril plus additional living expenses, like groceries and lodging, if you're unable to live at your residence while it's being repaired because of a covered loss.
Why is lemonade insurance so popular? ›
We created Lemonade as a purpose-built, technology-first, vertically-integrated and legacy-free insurance carrier. Insurance brands are some of the least loved and least trusted, and we came to understand that the cause is structural: every dollar your insurer pays you is a dollar less for their profits.
What is Lemonade renters insurance am best rating? ›
Lemonade customer satisfaction
While Lemonade does not have a financial strength rating from credit agency AM Best, it received a financial stability rating of A (Exceptional) from financial analysis firm Demotech.
How can you determine how much home contents insurance you need? ›
Add up the total value of your home contents
Add up a total value for the items in each room and a separate one for your valuable items. Add together all the totals, plus anything else you own that would be covered by contents insurance, and you'll have a good estimate of the value of your home contents.
Which one of the following is not covered by renter's insurance? ›
Some of the natural disasters that happen frequently in California are not typically covered under renter's insurance policies. This includes: Bedbug, flea, or rodent infestations.
Which of the following should be covered by renter's insurance? ›
Renters insurance is an insurance policy that can cover theft, water backup damage, certain natural disasters, bodily injuries and more in a rented property.
What is renters contents? ›
For renters, contents insurance will cover the cost of repairing or replacing the items you keep at home like furniture, electrical appliances, and even potted plants.
