Renters insurance, sometimes called tenant insurance, pays to replace or repair a tenant’s personal property if it’s stolen, damaged, or destroyed in a home or apartment rented by that tenant. The landlord’s insurance policy covers the house or apartment building structure but not the tenant’s personal property.

Renters Insurance policies typically include three types of coverage: personal property,
loss of use, and personal liability.

Personal Property pays to repair or replace your personal property, up to your policy’s dollar limit. In addition to a total dollar limit, policies may limit payments for certain kinds of property. Common limits are $100 for cash, $2,500 for personal property used for business, $500 for valuable papers, and $500 for jewelry, watches, and furs.

Loss of Use pays for additional living expenses, such as food and housing, if you must move from your home or apartment because of a covered loss. Loss of use coverage is generally limited to 20 percent of a policy’s personal property coverage. For example, if you have $25,000 in personal property coverage, your policy would include $5,000 for temporary additional living expenses.

Personal Liability protects you against a claim or lawsuit in the event that someone is injured inside your home. Typically, a renters policy automatically provides $25,000 in liability coverage and pays your legal costs as well. Extra liability coverage is available for an additional premium.

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