Renter’s insurance provides financial protection against the loss or destruction of a lessee’s possessions when renting a house or apartment. While a landlord may be sympathetic to a burglary or destruction of one’s possessions, such losses are not covered by the landlord’s insurance. Renters insurance is structured much like a standard homeowner’s policy, but is specifically formulated to cover a maximum stated amount. Since renter’s insurance does not cover the physical building, the premium is relatively inexpensive.
By purchasing renter’s insurance, a lessee’s possessions are covered against losses from fire, smoke, lightning, vandalism, theft, explosion, windstorm or water damage (not including floods). Like homeowner’s insurance, renter’s insurance also covers any responsibility to other people injured at the dwelling or elsewhere, including any liability caused by a family member, guest or pet, and will pay legal defense costs if legal action is taken.