The coverage provided by renters insurance can generally be divided into the following three categories:
Personal property—This coverage may help pay to replace or repair your belongings, such as your furniture, electronics and clothing, if they are stolen or damaged by specific perils outlined in your policy, like fire or vandalism.
Liability protection—This coverage may help protect you if someone else is injured at your place and decides to sue. It can also cover damage you cause to others’ property.
Additional living expenses—Also known as loss of use, this coverage can pay for your meals, hotel bills and other costs if your residence becomes uninhabitable due to damage from an event such as a fire.
Renters insurance isn’t designed to cover all types of damage. For example, most renters insurance policies don’t cover damage from floods or earthquakes. If you live in an area prone to these types of disasters, you may need to purchase additional coverage.