DEFINITION of 'Renter's Insurance'

A form of property insurance that provides coverage for a policy holder's belongings and liability within a rental property. Renter's insurance applies to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft or townhome. The policy protects against losses to the tenant's personal property within the rented property. In addition, a renter's insurance policy protects against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property (in this case, the owner's - not renter's - policy would apply).

BREAKING DOWN 'Renter's Insurance'

Increasingly, proof of renter's insurance is required by many landlords. Personal belongings within a rented property are typically not covered under the owner's or landlord's property insurance. For example, if a flood or fire destroys all the personal property within a rented apartment, the structure would be covered under the landlord's policy, but the personal property would only be covered through a renter's insurance policy. Without this coverage, the tenant would be responsible for the loss out-of-pocket.

RELATED TERMS
  1. Additional Living Expense Insurance

    Coverage under a homeowner's, condominium owner's or renter's ...
  2. Rent Control

    A price control that limits the amount a property owner can charge ...
  3. Personal Property

    A type of property which, in its most general definition, can ...
  4. Investment Property

    A real estate property that has been purchased with the intention ...
  5. Rent Guarantee Insurance

    Insurance bought by a tenant that pays the monthly rent for a ...
  6. Income Approach

    A real estate appraisal method that allows investors to estimate ...
Related Articles
  1. Insurance

    What Does Renter's Insurance Cover?

    Renter's insurance is supposed to cover a tenant's personal property as well as liability claims, but not all policies deliver.
  2. Insurance

    Renter's Insurance: A Comprehensive Guide

    Everything you need to know about renter's insurance.
  3. Insurance

    Does Your Homeowner’s Insurance Cover Airbnb?

    Renting out a room on Airbnb can be a good way to generate income, but you need to understand what is and isn’t covered by your homeowner’s insurance first.
  4. Personal Finance

    Take Advantage Of A Housing Crisis - Rent!

    When a housing crisis strikes, the big winners are often the renters.
  5. Investing

    Renter Nation: Half of Largest Cities Now Majority Renter

    More people are becoming home renters instead of homeowners. Societal supports need to catch up.
  6. Managing Wealth

    Top 5 Ways to Protect Yourself Against Problem Renters

    Renting seems like the perfect way to mitigate the costs of an extra home that won’t sell; the intended course of action when a property was purchased for an unbelievable price, or many of the ...
  7. Investing

    Top 6 Tips for Turning Your Home Into a Rental Property

    Learn what you need to do to turn your property into a rental property.
  8. Investing

    Top 10 Features of a Profitable Rental Property

    Looking to purchase a rental property? These are the factors that should be considered for income-producing real estate.
RELATED FAQS
  1. Can I get renters insurance without a lease?

    Find out whether you need to have a lease before you can get renters insurance. Learn about policy coverage and what information ... Read Answer >>
  2. Does renters insurance cover jewelry?

    Learn what kind of coverage renters insurance provides for your jewelry, and find out what steps you can take to optimize ... Read Answer >>
  3. How much renters insurance do you need?

    Learn how much renters insurance you need to replace your belongings and how to calculate exactly how much is necessary to ... Read Answer >>
  4. Can roommates share renters insurance?

    Learn how roommates could share a renters insurance policy in some states and how that could lead to issues during the claims ... Read Answer >>
Hot Definitions
  1. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  2. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  3. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  4. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  5. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  6. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
Trading Center