A standard renters insurance policy typically includes three types of coverage: personal property coverage, renters liability insurance, and additional living expenses coverage (also called "loss of use"). While insurance companies may use different names for these coverages, they generally function in the same way.

Personal Property Coverage
Personal property coverage, also known as personal belongings coverage, is what most people associate with renters insurance. It covers items such as:

• Furniture (sofas, tables, beds, etc.)
• Clothing and shoes
• Electronics and devices (TVs, laptops, gaming consoles)
• Appliances and kitchen equipment
• Home goods (bedding, towels, decor)
• Sports and hobby equipment (bicycles, musical instruments, etc.)

However, certain high-value items may be excluded from a standard policy if they exceed a specific value. This includes jewelry, artwork, collectibles, and specialized computer or hobby equipment. To fully protect these items, you may need to purchase additional coverage, such as a scheduled personal property endorsement.

Renters liability insurance, also known as personal liability coverage, protects policyholders in case of lawsuits resulting from incidents occurring on the rental property. This includes accidental injuries to guests, injuries caused by household pets, and accidental damage to a neighbor’s personal property. If needed, liability coverage can be increased or supplemented with an umbrella insurance policy for additional protection.

Additional living expenses (ALE) coverage provides reimbursement if a covered disaster temporarily forces you to relocate from your rental property. It helps cover temporary lodging, food, and other necessary living costs while away from home. According to the Insurance Information Institute, covered disasters generally include smoke and fire damage, explosions, vandalism, theft, windstorms, lightning, and water damage from plumbing issues or leaks from neighboring units. However, earthquakes and flood damage from weather or external water sources are typically excluded from standard renters insurance policies.

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