By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods).  As your rented home structure is not covered, the premiums are quite reasonable.  Costs you incur.Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet, and pays legal defense costs if you are taken to court.

Like a homeowners policy, renters insurance covers your additional living expenses if you are unable to live in your apartment during repairs to damage caused by a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.