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How Renter's Insurance Works

Renter insurance offers coverage similar to homeowner insurance for people who rent living space, such as an apartment, single or multi-family home.

The landlord generally buys insurance coverage to protect his or her interest, such as the building, loss of rents, liability, etc. It does not cover your property.

What a Standard Renter Policy Includes

Renter insurance is normally a special package that combines coverage for:

  • Personal Liability - Provides protection against claims someone else makes against you.
  • Premises Medical Coverage - Pays the medical expenses of others accidentally injured on the property you rent.
  • Additional Living Expense - Pays for your living expenses if the living space you rent is deemed unlivable and has to stay somewhere else temporarily.
  • Personal Property Coverage - Standard renter policies only cover the actual cash value at the time of the loss. Some personal property, like gold or jewelry, has a specific dollar limit that the policy will cover.

What to Consider When Buying Renter Insurance

  • Policies and prices can vary from company to company. Don't be afraid to comparison shop.
  • Some companies only offer renter insurance if you buy all of your insurance from them, such as auto coverage.
  • Check your rental or lease contract with the landlord. The landlord may require you to carry specific coverage.