Does Renters Insurance Cover Broken TV? (Find Out Now!)

Hannah DeMoss
by Hannah DeMoss

Whether or not the TV is covered depends on the particular renter’s insurance policy, the value of the TV, and the circumstances in which it was broken. How much is paid out on a TV depends on deductibles, limits, and how they value covered items. Most renter’s policies will not pay out enough to purchase a brand-new replacement TV.

Renters insurance policies will help cover costs to repair or replace the broken TV if it was damaged by a catastrophe that is covered by the policy such as fire, theft, or an indoor plumbing leak, up to the policy limit and after a deductible. A TV broken by carelessness or neglect is not covered.

A TV that is broken by residents, visitors, or pets will not be covered. Renter insurance policies have a deductible to be met before the money is paid out, as well as limits on how much the company will pay out on electronics. Read on to find out how to be sure that expensive TVs and electronics are covered at replacement value.

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Renter’s Insurance Policy Perils

It is important that all renters purchase rental insurance policies because the landlord’s insurance does not cover the renter’s belongings. These policies are very affordable, typically costing only between $5 and $10 per month. This small expenditure ensures that the renter has help with repair or repurchasing personal belongings when they are damaged by covered perils.

  • Fire or smoke damage
  • Interior flooding from broken water pipes and water heaters
  • Theft
  • Vandalism
  • Electrical storms
  • Weather disasters such as hail, high winds, and ice or snow damage

This list is not comprehensive, and covered perils vary by insurance company and policy. Unfortunately, they usually have perils that they will not cover such as floods, earthquakes, wear-and-tear, animal damage, and other things that may damage or ruin personal belongings.

Standard policies name specific perils that are covered and specific perils that are not covered. Circumstances that happen outside of the covered perils will not be covered, even if they are not named specifically on the list of things that are not covered. These are the most inexpensive policies.

All-risk or comprehensive coverage plans will cover nearly all possible scenarios but are not all-inclusive. There are still circumstances that the insurance company will choose to not cover, but these are covered in the policy declaration. This type of coverage is more expensive and is not available from all providers.

Damage to the building is not covered by the renter’s policy because that is covered by the landlord’s insurance policy. Additionally, coverage limits may be lowered for items that are stored outside such as in a car, garage, or yard, due to the increased risk of destruction or theft. This should be made clear in the individual policy.

General Renter’s Insurance Policy Limits

When a renter purchases insurance, they will have many choices for crafting a personalized policy. These choices affect the cost of the policy as well as how much is covered and under what circumstances. During the quoting process and after purchase the renter will receive a policy declaration that line items what is covered and what the cost is for the coverage.

  • Policy limits detail the maximum amount that the insurance company will pay out on any particular category of claim. For instance, a policy may have a limit of $2,500 on electronics. That may or may not cover the cost of the broken TV. The renter will have to pay the extra to purchase a replacement TV.
  • Peril inclusions and exclusions detail the circumstances in which the insurance company will or will not pay out on the policy claim. For instance, they will payout for a TV damaged in a fire, but not for a TV knocked over by a cat.
  • Deductibles state how much the renter will need to pay out of pocket before the insurance company will begin to pay. For example, a $100 deductible means that the renter will need to pay the first $100 toward TV repair or replacement before the insurance kicks in. 

When a renter purchases insurance, they can select plans that have deductibles to meet their unique financial needs. For instance, a renter can select a plan that has a higher out-of-pocket deductible on electronics but costs much less for the monthly premium. In the case of a loss, the renter will have to pay more before the insurance company will begin to pay. A lower deductible will cost more in monthly premiums.

Insurance Riders and Scheduled Items

Those that own expensive electronics such as state-of-the-art TVs, sound systems, and gaming consoles should consider purchasing insurance riders or purchasing scheduled insurance for each item.

  • An insurance rider is a policy addendum that can be purchased for the policy to cover certain items not included in the policy or raise payout limits for certain categories. For example, a renter could purchase an insurance rider that raises the electronics payout from $2,500 to $8,000. Costs vary by insurer.
  • A scheduled item is something that is specifically insured in the policy. Examples might be a piece of jewelry, a TV, or a rare coin collection. The item is documented and insurance is purchased that covers the replacement cost of the item. 
  • Scheduled items cost a bit more per month, but in the case of a disaster, the scheduled items can be paid out with an amount that will cover the repurchasing of the item in its entirety. Scheduled items should be documented and reappraised yearly to ensure that limits will cover the item including inflation.
  • Purchasing insurance for a particular item that is sure to cover replacement cost is the only way to be sure that the item will be fully covered. Other policies leave this up to chance.

In the case where an expensive TV is destroyed by a covered peril, but it is not covered as a scheduled item, the insurance company will help to pay for a replacement, but it will not be enough to replace the item at market cost. The renter will have to make up the difference out-of-pocket.

Some insurance policies have special limits that are applied to certain high-value items such as recreational equipment, coin or currency collections, firearms, and jewelry. Renters should read policies carefully before purchasing and be sure to purchase riders or scheduled policies for high-value items that may not be covered under a regular policy.

Insurance companies may not value property stored on the premises for business purposes the same as they value personal property. Additionally, these items, if they are paid out by the policy, may count toward the policy limits. Those who run businesses out of rental properties should purchase riders that provide coverage for business inventory.

Actual Cash Value vs. Reimbursement

Another way that policies vary which greatly affects the monthly premium cost is how much value they intend to place on any particular item or category of items. The two types of policies are actual cash value and reimbursement.

Actual Cash Value PolicyReimbursement Policy
A less expensive policy optionA more expensive policy option
Pays out based on the value of the item minus the cost of depreciation. Renter will not receive enough to replace the item.Pays out based on what it will cost for a renter to repurchase the item at the time of the claim.
Leaves the renter to make up the difference in the cost to purchase the item.Ensures the renter will not have to pay out-of-pocket after deductibles and is subject to policy limits.

A reimbursement policy will cost the renter more in monthly premiums, but it is a way to help counteract possible out-of-pocket expenses later on if a claim is made on an expensive item that is covered under the policy. Those with high-value items should purchase reimbursement policies.

Actual cash value policies are the most popular policies that are purchased by renters. Unfortunately, many renters do not realize that the actual cash value does not mean the actual cash to repurchase the item, but rather the actual cash value of the item at a yard sale.

Both types of policies are subject to the deductibles that are selected by the renter at the time of purchase. Additionally, both types of policies are subject to the limits that are placed on payouts by the insurance company. Those who want to make sure that expensive items are covered should purchase a rider to increase category payouts.

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Conclusion

Renter’s insurance is a necessary part of a renter’s monthly expenses. While nobody likes to think about bad things happening, renters are victims of crime and natural disasters all the time. It is devastating when personal possessions are lost with no way to replace the items. It can take a renter several years to replace possessions if they are lost with no renter’s insurance to help pay for a replacement.

Renter’s insurance is a very low-cost way for renters to increase their financial security by taking care of items if they are damaged or stolen. The key is to purchase insurance that balances monthly affordability with appropriate coverage limits and deductibles to cover possessions in the case of a loss.

Hannah DeMoss
Hannah DeMoss

Hannah DeMoss has been a writer for nearly a decade. Her passion for writing began years ago has continued to grow. Her expertise at home involves furniture restoration and other small DIY tasks. When not writing, Hannah enjoys the outdoors with her husband and pups, as well as traveling.

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