What Is The Purpose Of Renter’s Insurance?

renter's insurance

Many renters believe that their personal properties are covered by their landlord’s insurance policy. Unfortunately, that’s usually NOT the case, as your landlord’s insurance policy covers the property itself. That’s where renter’s insurance comes in. This insurance policy protects your personal belongings in a rented home, apartment, or condo from unexpected circumstances like fire, theft, or sewer backup damage, and you’ll be paid for a lost or damaged possession.

Renter’s Insurance vs. Homeowner’s Insurance

Renter’s insurance is similar to homeowner’s insurance in terms of scope, with the exception that it doesn’t cover the dwelling itself or any other structure. Here are some of the reasons why you should own a renter’s insurance policy.

It Covers Losses to Belongings

Renter’s insurance offers coverage against losses of belongings. Even if you believe you don’t have much personal property, loss of damage to your belongings can cost you more than you think. Renter’s insurance protects you against a surprisingly long list of threats. For example, the regular HO-4 insurance policy, created for renters, covers losses to personal property from perils such as:


  • Water Damage from household appliances or fire-protective sprinkler systems
  • Damage caused by cars or aircraft
  • Explosion
  • Fire or lightning
  • Falling objects
  • Civil commotion or riot
  • Theft
  • Smoke
  • Volcanic eruption
  • Vandalism
  • Ice, snow, or sleet
  • Windstorm or hail

Some Landlords Require Renter’s Insurance

A growing number of landlords now require that their renters get renter’s insurance policies and ask for proof. This idea might come from the landlord or the landlord’s insurance company. The notion is that if you as a tenant have coverage yourself, some responsibility can be shifted away from your landlord.

It Can Protect Your Finances

Maybe you’ve worked hard to get out of debt or save for a down payment on a home; the last thing you need is a lawsuit that takes all that away from you. For instance, let’s assume you go golfing, hit a poor tee shot that strikes another golfer in the head, and they decide to sue you. If you’re deemed responsible by the court, liability coverage is included in a standard renter’s insurance policy, and this can help you cover costs up to the policy limit.


Renter’s insurance can also come in handy if your kid breaks a valuable possession at a friend’s house, your dog bites someone at the park, or your guest slips and falls inside your house.

It May Cover Additional Living Expenses

If your apartment or home becomes ruined due to one of the perils that renter’s insurance covers, you can also be covered for additional living expenses. And this includes the cost that is associated with living somewhere else temporarily, such as money for groceries. However, you should check with your renter’s insurance policy to find out if it will provide coverage for additional living expenses — and the amount the renter’s insurance company will pay.


To learn more about the purpose of a renter’s insurance policy and get help choosing the best plan, contact Redwood Agency Group today.