Did you know that there is a type of insurance that covers your personal property and living expenses if your apartment or house catches fire? There’s also coverage for theft and vandalism. It’s called renters insurance, but what exactly does it cover? This article will delve into the different types of coverage available to renters so you can know how it works.

What is Renters Insurance?

Renters insurance is a policy that covers the renter’s property if it is damaged from fire, theft, or natural disasters. It can also cover personal possessions such as furniture and clothing. The coverage amount for this type of insurance depends on what you need to replace should something happen to your belongings. Renters Insurance quotes are available online so that you can compare rates quickly and easily.

What is covered by renters insurance?

Renters insurance covers your living expenses if you are displaced from your residence due to a covered event such as fire. It also pays for the cost of temporary housing and food for any affected family members, in addition to personal property that may be damaged or destroyed.

Depending on the type of coverage selected, you can choose between actual cash value or replacement cost.

What is the actual cash value of renters insurance?

Actual cash value coverage will pay to replace your items at the price they are currently worth, which can be less than it initially cost you since things depreciate over time.

What is the Replacement cost of renters insurance?

On the other hand, replacement cost coverage pays for a new item of a similar make and model in today’s market to replace what was damaged or stolen. So you will receive the total value of your insured possessions, minus any depreciation for items that are older than five years old.

Coverage Amounts for Personal Property and Living Expenses

You can choose between different coverage amounts when you purchase renters insurance. The minimum amount is usually $15,000, but it could be more depending on your needs. Each policy should detail exactly how much the maximum payout will be if there were ever a claim. For example, you may choose to have $30,000 in coverage with a limit of up to $1000 for temporary housing and food per family member.


Renters insurance is typically not required by landlords, but it can be highly beneficial if something unfortunate happens. Renters must understand the different types of policies available to choose the best coverage for their needs.