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. Property Insurance

    A policy that provides financial reimbursement to the owner or ...
  2. Lease Option

    An agreement that gives a renter the choice to purchase a property ...
  3. Additional Living Expense Insurance

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

    A price control that limits the amount a property owner can charge ...
  5. Property Management

    The administration of residential, commercial and/or industrial ...
  6. Investment Property

    A real estate property that has been purchased with the intention ...
Related Articles
  1. Insurance

    6 Good Reasons To Get Renter's Insurance

    If you rent, you still need insurance for personal property and if anyone is injured at your place. The good news: It also covers losses when you travel.
  2. 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.
  3. Insurance

    Renter's Insurance: A Comprehensive Guide

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

    A Quick Guide To Landlord Insurance

    ...And why landlords need it, even if they also have homeowners insurance.
  5. Investing

    Reasons Renting Is Better Than Buying

    Owning a home is much more expensive than renting. Here are the places where the costs differ greatly.
  6. Investing

    Can't Sell Your Home? Rent It

    Find out how to profit from your property when the housing market dips.
  7. Personal Finance

    Take Advantage Of A Housing Crisis - Rent!

    When a housing crisis strikes, the big winners are often the renters.
  8. 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.
  9. Insurance

    6 Best Renters Insurance Providers

    Here are six companies that consistently offer excellent renters insurance at competitive rates.
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. Why might landlords require renters insurance?

    Learn why landlords may require tenants have renters insurance, and find out what type of coverage landlords can request ... Read Answer >>
  3. 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 >>
  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. Book Value

    1. The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated ...
  2. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
  3. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. ...
  4. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents ...
  5. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  6. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
Trading Center