Eli Porter
Every year, many tenants end up forfeiting part of their security deposit due to carpet damage. Some take the damage to court, while others just fork over the money. But only a very few consider that their renters’ insurance could have paid for the damage. So, if you have a renters’ insurance policy, and the carpet has been damaged at your place of living, you might be better protected than you give yourself credit for.
The answer isn’t a simple yes or no. The insurance cover depends on what caused the carpet damage. So, this article explains exactly how renters’ insurance works with carpet damage, what it won’t cover, and what you can do to keep yourself safe.
Table of Contents
Will Renters Insurance Cover Carpet Damage?
Renters’ insurance can come to your rescue in case of carpet damage, but it will be a rare case. It will be a case when the damage is a result of a covered risk. A named peril is one of the specific events listed in your policy that is a valid reason for a payout.
Common Causes of Carpet Damage Covered by Insurance
Here is the list of the most common causes of carpet damage that are covered by insurance:
- Fire and smoke
- Broken or frozen pipes
- Water escaping from a burst pipe or from a broken appliance.
- Vandalism or malicious damage
- Theft-related destruction
- In certain policies, the windstorm or hail
- Electrical surge that causes appliance overflow
The coverage is to be extended up to the repair or replacement cost of the carpet after your deductible if the carpet damage comes about directly with any one of these events in your rental unit.
When Renters Insurance Will NOT Cover Carpet Damage
This is what surprises most tenants. Many types of carpet damage appear as though they should be covered, but they are not.
Wear and tear
Standard insurance policies never cover normal wear and tear when the carpet gets stained, faded, flattened, or frayed by years of everyday use. Insurers look at this as an expected deterioration and tell a maintenance issue. Hence gradual aging of your carpet even if it was very expensive originally, cannot be claimed for.
Accidental Spills and Stains
Most people consider spills of wine, coffee, or food on a carpet as accidents. However, insurers have a very strict interpretation of spills, meaning they are considered preventable, and hence spills do not meet the definition of a covered peril. In such cases, the stains resulting from everyday living are your responsibility to clean and repair.
Burns
Burns on the carpet from a cigarette, candle, or a hot iron are not covered by insurers. These are human-induced damages and are treated as preventable damages.
Pet Damage
One of the most common reasons for renters changing carpet, and one of the highest-recurring denial causes among insurance claims, is pet damage. Pet urine stains, clawing, and chewing from dogs or cats are considered non-sudden or non-accidental events by insurers. Implications are that these are viewed as the predictable consequences of having a pet in the home.
A few companies out there are offering pet liability riders, but they are mostly aimed at injuries to other people, and not damages to the flooring inside your own unit.
Mold and Mildew
Generally, the insurance companies will not cover mold that grows in the carpet due to dampness coming from a leaky window, poor ventilation, or a slow drip that went undetected for a long time. Insurers see moisture that gradually accumulates as a maintenance problem that should have been handled earlier. If the mold was the result of a covered water event, such as a burst pipe, then insurance might cover some parts of it; however, mold as a stand-alone is usually excluded.
How Liability Coverage Applies to Carpet Damage
It is a common thing for renters to ignore the liability section of their insurance policy when they think of damage to the carpet. Unfortunately, this is a mistake that could end up costing you.
Personal liability insurance covers you when you damage someone else’s property by accident. In case of a rented property, the carpet is technically the landlord’s property. If you cause sudden accidental damage to the carpet, the costs for the replacement can be covered by your liability coverage, even if personal property coverage doesn’t apply.
When Liability Coverage Comes into Play
- While sleeping, you didn’t realize your bathtub was overflowing, and the water ended up soaking the carpet.
- You accidentally knock over a fish tank, and water damages the flooring.
- The plumbing fixture that you were using went out of order and flooded the unit.
These scenarios are examples of you having caused the damage unintentionally. Your liability coverage may pay for the repair cost, and thus, no disputes with your landlord.
A typical renters’ insurance plan would have a personal liability coverage of at least $100,000. Some will even go as high as $300,000. This should be more than enough to cover carpet replacement in the US rental properties.
Actual Cash Value vs. Replacement Cost Value
The payment that you will receive from your insurance company depends on the type of coverage that your policy offers when you file a claim for carpet damage.
Actual cash value pays what the carpet was worth at the time of the damage. After 10 years, a carpet that has cost $2,000 might only have a value of $400. This is the amount you will get.
Replacement cost-value covers the price of buying and installing a similar new carpet. That $2,000 carpet might be worth $2,500 for the replacement at present. Thus, you will get a higher amount.
Investing in replacement cost coverage for the slightly higher premium delivery during the major loss event is a good idea.
How to File a Carpet Damage Claim
It is good to act first and record everything with pictures and videos. This will make your claim successful.
- Immediately after the day that the damage occurred, take pictures and videos of the carpet.
- While it’s still fresh, put down the day, time, and the reason for the damage.
- Tell your insurance company about the damage as soon as you can; most policies.
- require that a claim be filed promptly
- Ask for a written quote for the repair or replacement work from a flooring contractor.
- Keep all the receipts and other documents related to the matter.
- Try not to make permanent repairs before your insurer sends an adjuster.
If you wait to report or make repairs before the inspection, your claim might be reduced, or even totally denied.
You may also read: Does Home Insurance Cover Furnace Replacement?
How to Protect Yourself Before Damage Happens
Even the best coverage could be trumped by an isolated incident. Taking a few simple steps will secure both your insurance and your security deposit.
- Take photos of the carpet’s status on the day you move in and email them to your landlord to start a
time-stamped record. - Find out what your renters’ insurance policy covers and understand the named perils in case of a mishap.
- Speak with your insurance agent about your particular circumstances to see if you are covered before assuming coverage.
- Immediately report water leaks, plumbing troubles, and broken appliances to your landlord in writing.
- Cleaning up a spill immediately can help avoid permanent staining or mold growth.
- If you have pets, it may be a good idea to set up a fund with the possibility of carpet repair costs at the time of where you move out.
While you want to do it yourself, these smartphone apps will give you an advantage in a dispute.
What Does Carpet Replacement Actually Cost?
Nationally, material and labor combined for carpet replacement range from $3.50 – $11 a square foot. So the carpet for a 12×15 room could be as cheap as $630 or more than $2,000 if you are going for the higher quality material and/or the higher cost of living area.
On your own, you have to dig into your savings to cover this. However, with a policy covering you, a damaging event that generally requires carpet replacement changes from a serious problem to a level of inconvenience.
The Bottom Line
When you have renters’ insurance, there are some situations where it does cover carpet damage. These are situations that happen suddenly and unexpectedly, such as a burst pipe, fire, or vandalism. On the other hand, you will not be covered if there is regular wear and tear, pet damage, stains, or burns.
It is up to you to understand your policy before anything happens so that you are able to be in control. Having the proper renters’ insurance plan will protect your wallet, your security deposit, and most importantly, your mental state as a tenant.
Now that you know what you need to compare in renters insurance plans, or if you want to check if your present coverage is sufficient to cover you for the entire year until your next premium due date, go to insurancheck.com to discover plans designed by real renters living all over the USA.
