Renters insurance, also known as tenant insurance, is an insurance policy that provides some of the benefits of homeowners insurance, but does not include coverage for the dwelling or structure. It is designed to protect tenants personal property and provide them with liability coverage, but not to insure the actual dwelling, making it significantly less expensive than a homeowners policy. The owner of the building is responsible for insuring the dwelling itself but bears no responsibility for the tenants belongings. Many large and medium-sized rental properties include a requirement in their lease that tenants hold renters insurance.

Renters insurance covers personal property, personal liability, medical payments, and additional living expenses or loss of use, up to the limits of your policy. Personal property coverage helps pay for the cost of replacing or repairing your belongings if they are damaged, destroyed, or stolen. Liability coverage helps protect you from paying out of pocket for certain costs if you are found legally responsible for injuries to other people or damage to their property. Medical payments coverage helps pay for medical expenses if someone is injured on your property. Additional living expenses coverage helps pay for additional costs you incur because you are unable to live in the home youre renting after a covered loss.

Renters insurance policies vary based on the type of coverage a renter chooses, and the higher the coverage, the higher the premium. Proof of renters insurance is required by many landlords, and without this coverage, the tenant is responsible for the loss out of pocket. Renters insurance does not cover floods or earthquakes, and landlords insurance does not cover the personal property of any tenant living on site.