A common misunderstanding through today's renters is that many of them live under the belief that landlord's insurance secures their apartment belonging, but what they don't know is that it only insures the building itself. This policy will have no effect if your apartment suffers from incidents such as a house fire or even theft.

This is the main reason homeowner's insurances are so important and so today we're going to talk about one of the best policies for renters' needs: renter's insurance.

With that being said, in this article, we're going to cover what renter's insurance is, how it works, the best renter insurances, and why it is important for you to have it.

What a renter's insurance is?

Also called tenants' insurance, renter's insurance is a property insurance policy that provides coverage for a homeowner's belonging, liabilities, and even living expenses in case of events like those mentioned above.

Renter's insurance is designed for people renting a single-family apartment, home, condo, townhome, loft or duplex. It basically provides the same benefits as the homeowner's insurance but without coverage for the dwelling and structure.

However, there are other benefits specific to renter's insurance that makes it so important for anyone willing to rent a property.

How renter's insurance works

After a claim is filed, the claim adjuster has to review all the damage done, determine the total loss monetary value and then give your claim the verdict. If it gets accepted, you can be reimbursed in
as little time as two days, depending on your policy type and the circumstances of the loss.

Unlike homeowner's insurance, renter's insurance strictly covers the person's liabilities and the personal property inside the housing unit. The building itself ( the roof, the walls, the floor, the foundation, furnaces and other parts not owned by the renter) is covered by the landlord's insurance.
The renter's insurance also protects you in case someone affected or injured by your property is filing a lawsuit.

Although renter's insurance is not mandated by the government, many landlords require renters to purchase coverage up to $100,000 as part of the contract.

Best types of Renter's Insurance