Personal property coverage, renters liability insurance, and supplementary living expenses are the three categories of coverage provided by a standard renters insurance policy. Insurance companies may call these coverage kinds different names, but they all work similarly.

Personal property or personal belongings coverage is what most people think of when it comes to renters insurance. Personal belongings include furniture, clothing and shoes, electronics and devices, appliances and kitchen equipment, home goods such as bedding and towels, and most sports and hobby equipment such as bicycles and musical instruments. Certain personal belongings may be excluded from a standard policy if they’re above a particular value, such as jewelry, artwork, collectibles, and specialized computer or hobby equipment.

Renters liability or personal liability coverage provided by a renters insurance policy covers the policyholder in case of a lawsuit resulting from incidents originating on the rental property, such as accidental injuries, injuries from household pets, or accidental damage to a neighbor’s personal property. If needed, your liability coverage can be increased or augmented with an umbrella insurance policy.

Additional living expenses coverage provides reimbursement if a covered disaster results in temporary relocation from the rental property. This ensures the policyholder is compensated for additional lodging, food, and other living expenses while living elsewhere. According to the Insurance Information Institute, covered disasters generally include smoke, fire, explosions, theft, vandalism, windstorms, lightning, and water damage from internal sources, such as plumbing or intrusion from a neighboring unit. Standard exclusions include earthquakes and floods from weather or other external water sources.

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