Renters insurance is similar to homeowners insurance in that it protects you in the event of many of the same events, including fire, smoke damage, theft, collapse of building due to weather, water leakage or overflow, and freezing of plumbing or air conditioning. Also, a renters insurance policy will cover your personal property, like your furniture, electronics, clothing, etc., as well as your personal liability if someone is hurt in your home, or hurt by you away from it. The difference is that it does not cover the building itself. That would be covered by the building owner's landlord insurance policy.
It is important to note that your landlord's insurance policy does not cover your personal property.
While protecting your possessions from fire and theft is an important part of a renters insurance policy, the personal liability aspect is worth noting. Think about these situations:
- Your apartment is broken into and your 52” flat screen TV is stolen.
- You are on vacation and someone breaks into your hotel room.
- You are on the golf course and your ball hits someone.
- Or you have a party and someone slips and falls outside.
Your renters insurance policy helps to cover your personal liability in all these events and more.