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What is covered under a basic renters insurance policy?

What is covered under a basic renters insurance policy?

Millions of people live in rented homes and apartments, yet less than half of them have no renter’s insurance. A good percentage of them do not even know that renter’s insurance exists. A lot of the people who don’t have renter’s insurance falsely believe that somehow, their property is covered under their landlord’s insurance policy. This is far from the case since the landlord’s insurance policy only covers their building and other belongings in that building such as the security system, tools in the shed, backup generator, and other things.
To ensure that your property in a rental home is covered, you need to buy renter’s insurance. The following is a breakdown of what’s covered by a basic renter’s insurance policy:

1. Personal property coverage

Picture everything you own in your rented home; your tv, furniture, kitchen appliances, clothes, shoes, precious comic book collection, and other items. Think about how much you’ve spent to date to buy all those items; is it thousands, tens of thousands, or even hundreds of thousands? Now picture a fire starting in your kitchen and burning down all those possessions into ashes.
In this scenario, if you don’t have renter’s insurance, you might as well say goodbye to all those items since no one will compensate you. However, if you do have it, the personal property coverage aspect of the policy will cover the cost of replacing your stuff saving you from massive losses. Renter’s insurance ensured that your personal property is covered if it’s lost, stolen, or damaged by fire, hailstorms, or other disasters. It covers you up to the limits set in your policy. If your property is worth more than the limit, you should buy additional coverage to ensure that everything is covered.

2. Liability coverage

This provides coverage against certain costs if you are found legally responsible for any injuries sustained to other people or damage to their property in your rented home. For instance, if you invite a friend over and he/she slips and falls down the stairs breaking an arm, your renter’s insurance will cover their medical costs and legal costs if they decide to sue.
In another example, if your dog destroys a neighbor’s property, they can sue you and your renter’s insurance policy will cover your liability and legal costs up to the limits set in the policy.

3. Additional living expenses

If your rented home or apartment is damaged by a fire, hailstorm, tornado, or other disasters, it may be rendered uninhabitable for the period during which repairs are being done. Renter’s insurance covers you for the costs you will incur as a result of having to seek alternative accommodation, increased cost of food above what you normally spend, increased cost of transport, and other expenses that arise as a result of damage to your home.


Renter’s insurance is vital since when disaster strikes, it can really save you from financial ruin. However, since insurers and policies differ, it’s always important to ensure you get a renter’s insurance policy that covers your unique needs.