What does renters insurance typically cover?

Renters insurance typically covers personal property loss and liability for damages, making it an essential policy for tenants. This type of insurance provides financial protection for a tenant's personal belongings in case of events such as theft, fire, or vandalism. Additionally, it includes liability coverage, which can help protect tenants from legal claims due to accidents that occur within their rented space, such as someone getting injured.

The focus of renters insurance is on safeguarding the tenant's own possessions and providing a safety net against liability lawsuits, rather than addressing property improvements or maintenance costs, which are responsibilities typically falling on the landlord. Since renters insurance doesn't cover the physical structure of the building itself—that's the landlord's responsibility—understanding its role in protecting personal assets and providing liability coverage is critical for renters.