What is renters insurance?
A landlord's policy generally protects the building, not a tenant's furniture, clothing, electronics, and other belongings. Renters insurance can cover personal property and add personal liability, medical payments, and additional living expense protection.
The policy follows its own terms even when a lease requires insurance. A landlord listed as an interested party is not necessarily insured for the tenant's liability, and the tenant's policy does not replace the landlord's building coverage.
What a renters policy may include
Common coverage sections include:
Personal property
May pay for belongings damaged by a covered cause of loss, including some losses away from the residence, subject to limits and exclusions.
Additional living expense
May help with the reasonable increase in living costs when a covered loss makes the rental uninhabitable.
Personal liability
May defend and pay covered claims alleging that an insured caused bodily injury or property damage.
Medical payments to others
May pay limited medical expenses for an eligible guest injury without requiring a finding of legal liability.
Common limitations and gaps
- Flood and earth movement are generally excluded
- Roommates are not automatically insured unless the policy defines or names them as insureds
- Jewelry, collectibles, bicycles, electronics, and business property can have special limits
- Damage caused by pets may be restricted by animal type, breed, or loss history
- The policy does not cover the tenant's responsibility for every kind of damage to the rented premises
What affects your coverage needs
- A home inventory and realistic value of belongings
- Replacement-cost versus actual-cash-value settlement
- Liability requirements in the lease
- Deductible and available emergency savings
- Work-from-home property or activities
What to compare between policies
- Covered causes of loss
- Off-premises property limits
- Special limits and scheduling options
- Water backup and identity-restoration options
- Whether temporary housing limits are adequate
A practical next step
Gather your current declarations, a list of the people and property that need to be insured, and any questions about limits or exclusions. Those details make it easier to compare policies on coverage as well as price.
Coverage availability, terms, limits, and eligibility vary by insurer and state. Coverage can be confirmed only by the issued policy and applicable endorsements.