Renters insurance, AKA tenants’ insurance (an HO-4 policy), is a type of property and casualty insurance designed specifically for people who are renting and living in a dwelling that they do not own or have a mortgage on. It offers similar coverages to a homeowners insurance policy with one big difference: there is no coverage for the actual dwelling itself as the renter or tenant does not have any ownership over the dwelling. The small exception to this is that often, small changes made to the structure or dwelling by tenants may be covered in a renters policy.
Renters insurance focuses coverage on the renter or tenant’s personal property within the dwelling, protecting it from loss or damage as long as the cause is covered within the policy. This coverage may limit business property (if you work from home, for example) from protection. Renters may want to consider additional coverage for expensive collections or valuables as well. Renters insurance also offers the tenant liability protection if a visitor is injured on the property and takes legal and/or financial action against the tenant. Some renters insurance policies even protect a tenant’s personal property in their cars or off the premises, so it’s a very good idea!
For tenants, renters insurance protects the contents of your rented dwelling (and sometimes no matter where it is!) against common causes of loss and damage like fire, water and smoke damage, theft, some weather, and vandalism. It also protects you against lawsuits and medical bills should a visitor get hurt while in your home. Coverage for loss of use is sometimes even included, so you can have funds for hotels and temporary living arrangements should a covered loss happen in the rental and you need to relocate. Some landlords require renters insurance policies, but even if yours doesn’t, this policy will help protect your belongings and give you peace of mind.