The financial consequences of a loss of personal property due to a broad range of perils. These are generally the same perils covered by homeowners policies. The do not include flood, earthquake, war, nuclear accident and other natural disasters excluded by policy language. Renters policies also provide liability coverage similar to that in homeowners policies, and they cover the extra expenses of having to live elsewhere if a dwelling becomes inhabitable. Different kinds of policies cover mobile homes, condominiums and co-ops.

Landlords are responsible for insuring their buildings. Renters insurance does not cover the actual building, but it does cover changes made to the inside structure, such as carpeting, kitchen appliances and built-in bookshelves. Like homeowners, renters can choose whether to insure up to the full replacement cost.

Tenants who want to protect the value of their possessions or insure against liability or the extra cost of living elsewhere if their rental unit is damaged or destroyed.

While some renters may not need this insurance in the technical sense of the word, most would probably want to have it.

When you begin renting.

Annual premiums.