What Does Renters Insurance Actually Cover?

Renters insurance protects your belongings, your liability exposure, and your temporary living costs if a covered loss forces you out of your unit. It does not protect the building itself—that’s the landlord’s job.

The structure of renters insurance closely mirrors homeowners insurance (minus dwelling coverage). If you want to compare them side-by-side, check homeowners insurance coverage explained.

1. Personal Property Coverage

This is the core of your renters policy. It pays to replace belongings damaged or stolen due to covered causes such as fire, smoke, certain water leaks, vandalism, and theft.

• Furniture, clothing, electronics, and tools
• Items stolen from your vehicle (policy limits may apply)
• Belongings temporarily away from home, such as luggage

High-value categories (jewelry, firearms, collectibles) typically have sub-limits. A deeper explanation of those limits is in personal property coverage basics.

2. Liability Coverage

Liability coverage protects you financially if you accidentally injure someone or damage their property. It does not apply to your own injuries or your own belongings.

• A guest trips in your apartment and needs medical treatment
• Your dog bites a visitor
• You accidentally damage a friend’s property

If you don’t know whether your liability limit is high enough, read liability coverage basics.

3. Medical Payments Coverage

A small, no-fault coverage that pays for minor guest injuries regardless of responsibility. It’s meant to resolve small problems quickly.

• Typically $1,000–$5,000 per person
• Does not apply to you or household members
• Not intended for major medical events

4. Loss of Use Coverage

If your rental becomes unlivable after a covered loss, this pays for hotel stays, short-term rentals, and increased daily expenses.

A more detailed breakdown is available in loss of use coverage basics.

5. What the Landlord’s Policy Covers Instead

Your landlord’s insurance covers the building, roof, common systems, and their liability—not your belongings. If the building burns, the landlord rebuilds the structure; your renters policy replaces your stuff and covers temporary housing.

• Landlord: structure, exterior, common areas
• You: belongings, liability, hotel/living expenses

6. What Renters Insurance Does Not Cover

• Flooding from rising water — requires separate flood insurance
• Earthquake damage unless you added an endorsement
• Wear and tear, pests, or maintenance failures
• Business property beyond small limits

If you’re renting while also owning rental property yourself, compare this with insurance for rental properties to understand how the policies interact.

7. Quick Renters Insurance Checkup

• Ensure your personal property limit roughly matches replacement cost
• Check sub-limits for jewelry, firearms, and collectibles
• Raise liability limits if they’re at the minimum
• Review coverage yearly or after major purchases