The full explanation
It usually includes three coverages: your personal property, even if it is stolen away from home; additional living expenses if a covered loss forces you to move out for a while; and personal liability if someone is hurt in your home. A standard policy does not cover floods, which are insured separately. Some landlords require it.
An example
A pipe bursts in the apartment upstairs and the water ruins Ana's bed and computer. The landlord's insurance pays to fix the ceiling, but not her things. Because she has renters insurance, Ana files a claim to replace them.
You will see it in…
- The lease, if the landlord requires insurance
- The policy and its declarations page
- The quotes you compare before buying a policy
