What is renters insurance?

Insurance for renters

Renters insurance is a special type of insurance for individuals who do not own the home they live in. Although the owner of the property is usually insured, the owner’s homeowners insurance does not cover the possessions of renters on the property.

Renters insurance typically provides three types of coverage:

• 1) Personal belongings – This insurance will pay for items lost as a result of a covered disaster, like a fire, theft, lightning, or damage by an aircraft or vehicle. Off-premises coverage, which is included with most renters insurance policies, means that a renter’s belongings are covered for these risks anywhere in the world.
• 2) Liability – This insurance will cover injuries or property damage that renters, or their children or pets, cause other people, anywhere in the world, and includes court costs and damages.
• 3) Temporary living expenses – This insurance pays for costs of living away from home, for things like staying in a hotel or dining in restaurants, if the home is temporarily unlivable because of an insured disaster.

Homeowners and renters insurance have a lot in common. The one major difference is coverage for the actual structure of the home. Renters insurance policies do not include this coverage, as that is the responsibility of the owner of the rental property.

Like basic homeowners insurance, renters are not covered for losses caused by floods, earthquakes, war, or nuclear accidents, or any other event specifically excluded from the policy.