Renter’s insurance is a type of insurance that provides coverage for personal belongings, liability, and additional living expenses if a rental unit becomes uninhabitable due to damage. This insurance protects renters against financial loss from incidents like fire, theft, or water damage. Unlike homeowner’s insurance, renter’s insurance does not cover the structure of the building, as this is typically the landlord’s responsibility.

In addition to covering personal belongings, renter’s insurance also provides liability coverage if someone is injured on your rental property and you are found legally responsible. It may also cover legal expenses if you are sued. Finally, renter’s insurance can cover additional living expenses, such as hotel stays, if you are temporarily displaced due to a covered event that makes your rental uninhabitable.