For those who choose to rent in lieu of purchasing a home, a renter’s policy is meant to insure personal property and liability. The property portion is meant to cover items such as furniture and clothing due to loss such as fire, theft and vandalism. It includes full replacement cost for these articles and is subject to a deductible.
Liability covers the renter for claims or suits against them for bodily injury and property damage. It includes the renter’s liability to the landlord for claims of fire and certain damages to the property. This coverage also includes attorney’s fees as well as the cost of settlement against the insured up to the policy liability limits. Most leases require tenants to carry liability insurance with a minimum limit of $300,000 or $500,000.