Almost every homeowner has homeowner's insurance because the lender that provides the mortgage requires it. Many renters, however, do not think about insurance to cover their personal property and liability for damages to others. Some renters erroneously assume that the landlord's insurance would cover their property loss in case of a fire or other disaster. Typically, the landlord or property owner carries insurance only on the dwelling itself.
Most renters need coverage on their possessions in the event that they are destroyed by fire or other disasters and liability coverage in case their actions cause bodily harm or property loss for someone else. Both are included in a typical renter's insurance policy. Renters need to consider that, even if they don't place their own personal property at risk by certain behaviors, their neighbors may not be as cautious. Renter's insurance tends to be quite affordable and provides peace of mind, as well as coverage, when needed.
Renter's insurance (HO-4) policies give a wide range of coverage for both personal property and liability. A renter's policy insures the contents inside the building (typically providing personal property protection for the same risks and perils as an HO-2 homeowner's dwelling policy), but it excludes coverage for the dwelling.
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