What Is a Renter's Insurance?
Renter’s insurance is property insurance that provides coverage for a policyholder’s belongings, liabilities, and possibly living expenses in case of a loss event. It’s available to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft, or townhouse. The policy protects against losses to the tenant’s personal property within the rented property. In addition, a renter’s insurance policy protects against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property (in that case the owner’s not renter’s—policy would apply).
Understanding Renter’s Insurance
Increasingly, proof of renter’s insurance is required by many landlords. Personal belongings within a rented property are typically not covered under the owner’s or landlord’s property insurance. For example, if a flood or fire destroys all the personal property within a rented apartment, the structure would be covered under the landlord’s policy, but the personal property would only be covered through a renter’s insurance policy. Without this coverage, the tenant would be responsible for the loss out of pocket.
In general, renter’s insurance offers three types of financial protection:
Coverage for personal possessions
Additional Living Expenses (ALE) protection