If you rent, your landlord's insurance policy covers losses to the building structure itself, but it does not cover your personal property. To be protected, you must have a separate renter's insurance policy. Renter's insurance covers your personal property and household items in the event of fire or other loss. Gives you liability protection if you are legally responsible for another person's injury or property damage . If someone is injured in you home and files a lawsuit, your landlord's liability policy may not cover the damages.
Extra coverage is available for an additional premium.
A renter's policy will normally pay you for the actual cash value of your losses. In other words, depreciation and wear and tear will be subtracted from the value of your property. However, you can add replacement cost coverage for about 15 percent in additional premium. It pays the full cost of replacing your damaged property, minus your deductible. It depends on the replacement value of the property.