Renters come in all shapes and sizes. You may be renting a house, condo, or an apartment; you may be a college student living with roommates, a young professional, or someone who has already started a family. Many people rent their homes for long or short periods of time, but just because you rent doesn’t mean your home isn’t a part of who you are. Renting is an increasingly common thing to do in the United States.

As a renter, you may not know where your landlord’s insurance stops and starts. While this is certainly information you can ask them about, you should also consider the importance of purchasing your own renter’s insurance.

What is renter’s insurance?

Renter’s insurance is an insurance policy that covers the loss of your personal property and a level of liability. Renter’s insurance would be beneficial to you if something happened to the furniture, personal belongings, electronics, and other valuable items you have in your home. You would be able to regain the value of some of those items with renter’s insurance.

Think about what would happen if you had to replace the items around you. How much would it cost you to replace your books, your computer, your TV, clothes, and other personal belongings? While an accident may leave you without your belongings, an insurance policy helps ensure you have a good level of financial coverage.

You can’t always replace the items that mean the most to you personally, but you can make sure you have a place to start from again should anything happen to your rental property.

What does renter’s insurance cover?

Renter’s insurance will generally cover your personal property. This means that your property, in case of a loss, will be covered by your renter’s insurance. A renter’s insurance policy may also cover liability, which works for you in case someone else is injured in your home. Your landlord’s insurance may cover you under their liability insurance, but others may not be covered.

A renter’s insurance policy could also help you financially if your existing rental property becomes uninhabitable. If the loss is one covered by your renter’s insurance, your policy will give you money to cover loss of use expenses if you have to relocate suddenly.

Finally, a renter’s insurance policy can cover medical expenses for guests in your home who have gotten injured.

What does your landlord cover?

Contrary to popular belief, your landlord doesn’t need to cover the loss of your personal property even if it is located on their property. Your landlord may have an insurance policy that covers the physical building you live in, but if you are the cause of any damage you will still likely have to pay for this yourself.

Talk to your landlord to see what kind of insurance they have, and how you can decrease the gap in insurance coverage with renter’s insurance. Having renter’s insurance is essential to cover the items you have in your home, no matter where you live.