Don’t assume your landlord’s insurance policy will protect you in case of theft, flood, or fire. While your landlord should have insurance, a landlord’s insurance policy only protects the landlord’s belongings and the building — not your personal items. Renters insurance is a cost-effective way to protect your belongings if the unthinkable happens.

What Does Renters Insurance Cover?

An insurance policy for a tenant covers many of the same things as a homeowner’s policy from your clothing and electronics to furniture and more. Your personal items will be protected against theft, fire, and some forms of water damage both at home and in your vehicle when you’re moving or traveling.

This type of policy also offers coverage against accidental damage you cause to someone else’s property and liability insurance if you are sued by someone else for an injury in your home. With a renters policy, you will be covered if a bathtub overflows and causes water damage to the unit below if someone trips and gets hurt in your apartment, or if someone breaks into your home and steals your belongings.

Your policy will even pay for you to stay somewhere else while covered damage to your apartment is repaired.