What renters insurance covers that the landlord's policy doesn't

The landlord's insurance covers structural damage to the building. It doesn't cover your belongings.

What the landlord's policy covers

The landlord's insurance pays for damage to the building's structure. It doesn't cover your personal property if it's stolen or damaged. In the other direction, renters insurance won't pay to fix the building, because the building owner's policy does that.

What a renters policy covers

Renters insurance normally combines several coverages:

• Personal property. It covers your clothes, furniture and other belongings if they're stolen or damaged while you live in a rented house or apartment.
• Personal liability. It protects you from claims if you're found legally responsible for injuring someone or damaging their property.
• Medical payments to others. It pays the medical costs of others accidentally injured at the place you rent.
• Additional living expense. It pays your living costs, such as hotel stays and restaurant meals, if you can't live in the place you rent and have to stay somewhere else for a while.

Additional living expense is paid only when the loss itself is covered.

How belongings are valued

A renters policy pays for belongings in one of two ways. Actual cash value pays what the item was worth at the time of the claim. Replacement cost pays the price of a new one. With actual cash value, a stereo stolen five years after it was bought is paid at what it's worth now, minus the deductible. Replacement cost pays the full price of a new stereo, after you buy it and send in the receipts. A rider, or floater, lists expensive items such as fine jewelry and art one by one.

What it usually leaves out

Flood and earthquake damage are typically excluded on standard home and renters policies. Renters can buy flood insurance for their belongings through the National Flood Insurance Program.

An annotated example

What to do next

If you have a renters policy, keep its declarations page where you can find it, and read whether belongings are paid at actual cash value or replacement cost. Keep an inventory of your property and its value, with photos of the items. A home inventory in an afternoon goes through one room by room.