Renters Insurance

What your landlord's policy actually covers

What renters insurance covers

• Personal property — furniture, electronics, clothing and everything else you own, against fire, theft, vandalism, storm damage and more. It typically covers your belongings away from home too, including in your car.
• Personal liability — if a guest is injured in your unit, or you accidentally damage someone else's property, including damage you cause to the building itself.
• Loss of use — hotel and additional living costs if your rental becomes uninhabitable after a covered loss. This is the piece renters most underestimate.
• Medical payments — smaller guest injuries, regardless of fault.

Who it's for

Anyone renting an apartment, house or room — including students and roommates. Many landlords now require it, but it's worth carrying even when nobody's asking. Replacing everything you own out of pocket is a far larger number than most people estimate before they add it up.

What it doesn't cover

• Flood and earthquake — excluded, as with homeowners
• The building itself — that's your landlord's policy
• Your car — auto insurance covers the vehicle; renters covers items stolen from it
• High-value items above sublimits — jewelry and collectibles may need scheduling
• Roommates' property — unless they're named on the policy. Generally each renter needs their own.

Getting the limit right

Walk through each room and total what it would cost to replace the contents new. Most people land at a substantially higher number than they'd have guessed. Ask for replacement cost rather than actual cash value — the difference in premium is usually small, and the difference at claim time is not.