Fire and smoke can cause extensive damage to personal property in a rental unit. Renters insurance can help with your personal costs, from replacing furniture and clothing after a fire to covering certain living expenses. Your landlord’s insurance generally covers the building itself.

A typical policy generally includes:

• Personal property coverage. To help pay to repair or replace your belongings. 
• Liability coverage. If someone is hurt or their property is damaged in your rental unit and you are found legally responsible. 
• Additional living expenses (ALE). Also called “loss of use” coverage to help with temporary housing costs. 

Coverage limits vary by policy, so understanding your limits — and whether they reflect the value of your belongings — can help you decide if you need to update your policy.

Types of fire damage that may be covered

• Accidental fires. Such as cooking mishaps, candle flare-ups or heater malfunctions.
  
• Electrical fires. If wiring inside the unit shorts and sparks a fire.
  
• Smoke damage. Even if flames don’t reach the items, soot and smoke can destroy property.

Most renters insurance policies cover actual cash value (ACV), which means:
Replacement (Current) Cost − Depreciation

Depreciation is based on:

• Age of the item 
• Typical lifespan 
• Condition prior to the loss 

Example: Your 4-year-old TV originally cost $800. Today, it costs $900.
If its expected life is 8 years, depreciation is 50% and your policy would pay $450. ACV = $900 – (50% × $900) = $450

If you select replacement cost coverage (RCC) in your policy, you may receive more because this coverage pays the amount you’d need to buy a new, similar item, without deducting for depreciation. How replacement cost coverage typically works:

1. You receive an initial ACV payment. 
2. After you replace the item and submit proof of purchase, the insurer pays the difference between ACV and the price of the new item.  

Example: Using the example above, let’s say a new, similar TV costs $900. After you receive the $450 actual cash value payment, you may receive an additional payment of $450 if you select replacement cost coverage.

When renters insurance may not cover fire damage

Although fire is a commonly covered peril, there are situations where renters insurance may not apply.

Common exclusions and limitations

Depending on your policy and state, coverage may be limited or denied in scenarios such as:

Intentional acts. Fire that is intentionally set by the insured or at their direction (arson). 

Business property beyond certain limits. If you run a business from home, property used primarily for business may have lower limits unless additional coverage is in place. 

Property you don’t own. A roommate’s belongings usually are not covered unless they are also a named insured on your policy.  

Losses above your policy limits. If the cost to replace everything exceeds the personal property limit on your policy, your renters insurance policy will only pay up to that limit.  

Structural losses. Damage to walls, ceilings, floors and built-in fixtures is typically covered by your landlord’s policy.  

How to file a claim for fire damage

Typical steps for filing a fire-related renters claim with Farmers:

Step 1: Contact Farmers

You can start a claim one of three ways:

• Online, through the Farmers claim portal 
• Call the Farmers claims center at 800-435-7764
• Contact your Farmers agent 

Step 2: Share details and documentation

A claims representative typically will ask for:

• Your policy number 
• Date and time the fire happened 
• The cause of the fire 
• What areas of the unit were affected 
• Whether anyone was injured 
• Which belongings were damaged or destroyed 

You may be asked to provide:

• A room-by-room list of damaged items, with estimated ages and values 
• Photos or videos of the damage 
• Receipts or other proof of purchase for higher-value items 

If your policy includes loss of use coverage and your home is uninhabitable due to a covered loss, save receipts for temporary housing, extra meals and added transportation to document those costs.

Step 4: Check in with your claims representative

Once you file a claim, a claims rep or adjuster will review your policy and evaluate what is covered. They may also want to:  

• Discuss your coverages, limits and deductible 
• Explain what additional information is needed 
• Arrange for inspections or estimates, if required 
• Provide updates on the status of your claim 

You may also check your claim status and upload documents through Farmers’ claims portal.

Step 5: Review your settlement and next steps

Once the claim is processed, you’ll receive information about any payments, including:

• How your personal property coverage was applied (actual cash value or replacement cost) 
• How your deductible was applied 
• Payments related to loss of use coverage 

 Processing a renters claim can range from a few days to longer periods, depending on how extensive the damage is and how quickly supporting information is available. Your claims representative can explain what to expect and keep you updated as your claim moves forward.

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