The holiday season is a time for joy, celebration and togetherness. However, it can also be fraught with unique perils. For example, during the holidays, you may be:
- Hosting many people for parties that involve alcohol and icy front steps.
- Cooking a meal involving multiple dishes on the stove all at once
- Potentially overloading circuits with lights in the name of festive decoration
- Traveling to visit loved ones, leaving your home unprotected
- Accumulating packages that attract roving porch pirates
In these circumstances and many others, renters' insurance is an essential safeguard that can prevent a holiday mishap from turning into a major financial hardship. Here are specific instances where renters insurance can come in handy during the holidays.
1. Theft of holiday gifts
The holiday season sees a significant spike in property crimes, including thefts from homes and cars. The increased prevalence of online shopping has significantly increased the number of packages stolen from porches. In fact, so-called porch pirates cost Americans $16 billion in 2023.[1]
Renters insurance typically covers stolen items, whether they were in your home or car or even on your front stoop. Of course, for smaller items, the cost of recovery might not be worth filing a claim, depending on your deductible, but if you had a big screen TV stolen from your porch you'll be glad you had it. Renters insurance generally pays the actual cash value of stolen items, not the replacement cost. However, that shouldn't be an issue for gifts and other brand news items that haven't had a chance to depreciate.
2. Damage from decorations
Holiday decorations like lights, trees, and inflatable yard ornaments can be fire hazards. An average of 260 home fires each year start with Christmas trees, and another 150 home fires per year are caused by decorative and holiday lights. In fact, home electrical distribution and lighting systems are the fourth leading cause of home fires.[2]
If your festive lights spark a fire that damages your belongings, renters insurance can help cover the cost of replacing or repairing items like furniture, electronics and clothing. Additionally, if a neighbor’s holiday decorations cause a fire that spreads to your unit, renters insurance can help cover the damage to your personal property. If your property is deemed unlivable due to the fire, renters insurance may also cover your living expenses elsewhere.
3. Accidental guest injuries
When you're the hostess wtih the mostest this holiday season, you can also open yourself up to liability if someone is injured on your property. A guest could accidentally slip on your icy steps or trip over a stray decoration, and the chances increase as the number of festive beverages increases.
Renters insurance often includes liability coverage, which can help pay for medical bills or legal costs if someone gets injured in your home.
4. Travel coverage for stolen or damaged items
Many people travel during the holidays, whether to visit family or take a much-needed vacation. But your renters insurance only covers your home, right? Not so! Renters insurance can protect you when you travel as well. If you're traveling by car, it can protect the personal property stolen from your vehicle. (Note: if the vehicle itself is stolen, you will need your car insurance for that).
However, renters insurance can also help if you travel by plane or train. If your belongings, like luggage, electronics or gifts, are stolen or damaged while you’re away, renters insurance may extend coverage to protect items outside your home. Check your policy details and coverage limits for details.
5. Weather-related damage
While the holiday season has finally seen the end of hurricane season, it is not without its own weather perils. The holidays coincide with winter weather in many regions, which can bring heavy snow, ice and strong winds. In 2022, winter weather caused nearly $6 billion in losses.[3]
If a burst pipe or roof leak damages your property, the property owner's policy will cover the repairs. However, if your belongings are damaged in the process, renters insurance can help with the cost of repairs or replacements. Similarly, if a falling tree limb destroys your outdoor furniture or holiday decorations, you may be able to file a claim.
6. Identity theft protection
The holiday season often leads to more online spending, which an also open you up to online scams and identity theft.
Some renters insurance policies offer optional identity theft coverage, usually as an endorsement to the policy. If your identity is stolen and your finances are compromised, this coverage can help cover the costs of restoring your accounts and credit. These policy endorsements typically carry the same protections and limits as their homeowners counterparts.
Wrapping up
Renters insurance is a crucial layer of protection, especially during the holidays when risks of theft, accidents and damage increase. Understanding how your policy works and what it covers lets you enjoy the season’s festivities with greater peace of mind. Take the time to review your coverage today so you’re prepared for any less-than-joyful surprises the holiday season might bring.