Renters insurance is a type of property insurance that protects a tenant's personal belongings and offers liability coverage in case of accidents or damage to the property. It covers losses due to theft, fire, windstorms, and other perils, but typically doesn't cover the building itself or damage to the landlord's property. 

Here's a more detailed breakdown:

• Additional Living Expenses:

  If a covered event makes the rental home uninhabitable, renters insurance can help cover the cost of temporary housing, like a hotel. 

• What it doesn't cover:

  Renters insurance doesn't cover the building itself, nor does it typically cover damage from earthquakes or floods. 

• Personal Property Coverage:

  Renters insurance protects the tenant's furniture, electronics, clothing, and other possessions from damage or theft. 

• Liability Coverage:

  This portion of the policy covers the tenant if someone is injured on their property or if they damage the landlord's property. 

Why it's important:

• Protects your belongings: If your personal property is damaged or stolen, renters insurance can help cover the cost of replacement. 

• Provides liability protection: It can protect you from lawsuits if someone is injured on your property. 

• Offers peace of mind: Knowing that your belongings and potential liability are covered can provide peace of mind when renting.