Landlords insure the building; they rarely cover a tenant’s belongings. Renters insurance protects personal property against named or open perils such as fire, theft, and certain water damage, and it also provides personal liability coverage for the tenant. Loss-of-use benefits can pay extra living expenses if the unit becomes uninhabitable.

Policies are relatively inexpensive because they exclude the structure itself. Coverage is usually written on an actual-cash-value or replacement-cost basis for contents. Liability limits protect against claims from injuries that occur inside the rented unit or from the tenant’s activities elsewhere.

Many landlords now require proof of renters insurance as a lease condition. Tenants who skip the coverage risk replacing furniture, electronics, and clothing out of pocket after a fire or break-in. A short application and modest premium close that gap for most households.

• Coverage for tenant’s personal property and liability
• Does not insure the building structure
• Often required by landlords
• Includes loss-of-use benefits in many forms