A renter’s insurance policy typically consists of three major parts: personal property coverage, liability coverage, and additional living expenses (ALE) coverage. Personal property coverage protects your belongings, such as furniture, electronics, and clothing, against risks like theft, fire, and certain natural disasters. Liability coverage provides financial protection if you're found legally responsible for injuries to others or damage to their property, covering legal fees and potential settlements. Additional living expenses (ALE) coverage helps with costs if your rental becomes uninhabitable due to a covered event, paying for temporary housing and related expenses while repairs are made. These components work together to offer comprehensive protection for renters.