What renters insurance is for
A landlord's policy generally protects the building owner's interests. Renters insurance is designed to protect the tenant's belongings, personal liability, and certain additional living expenses after a covered loss.
Core coverage parts
- Personal property: belongings such as furniture, clothing, electronics, and household items
- Personal liability: certain claims that the renter caused bodily injury or property damage
- Medical payments: smaller medical expenses for eligible guests, subject to policy terms
- Loss of use: additional living expenses when a covered loss makes the rental unfit to live in
Replacement cost and actual cash value
Replacement-cost coverage generally evaluates what it costs to replace covered property, subject to policy terms. Actual cash value generally accounts for age and depreciation. The difference can be significant after a major loss.
Limits and special property
Jewelry, collectibles, firearms, business property, cash, and certain electronics may have special limits. High-value items may need scheduled coverage or a separate policy.
Common gaps
Flood and earthquake losses usually require separate consideration. Roommates are not automatically insured under every policy. Business activity, short-term rental activity, and certain animals may create additional concerns.
Make a home inventory
Photograph each room, record important serial numbers, save receipts, and keep a copy outside the apartment. A simple inventory can make a difficult claim much easier.