Renters Insurance

When someone rents a home, the landlord’s insurance typically covers the building itself but not the tenant’s possessions. Renters insurance fills this gap.

A typical policy covers belongings such as furniture, clothing, electronics and jewellery up to a set limit, often with lower limits for valuable items unless listed separately. Many policies also include personal liability cover, which pays if the tenant accidentally injures someone or damages someone else’s property, and additional living expenses if the home becomes uninhabitable after an insured event.

For example, if a fire in a rented flat destroys a tenant’s belongings, renters insurance could pay to replace them and cover the cost of a hotel while the flat is repaired.

Renters insurance is generally inexpensive compared with homeowners insurance, because it does not cover the building. Some landlords require tenants to have it. The term is mainly used in the United States; in the United Kingdom and some other countries, the equivalent is usually called contents insurance.