Did you know that over one-third of American households are renters? Despite how common renting is, nearly half of renters don’t carry insurance.Many may not realize how financially exposed they are without this coverage.But what does renters insurance cover? This guide breaks down the answer and explains why renters insurance is worth considering.What’s Covered by Renters InsuranceRenters insurance typically falls into three main coverage categories: personal property, personal liability, and additional living expenses (ALE).Personal Property ProtectionPersonal property coverage protects your belongings against fire, theft, weather damage, and vandalism.Covered items often include:Some policies even extend to belongings outside your rental, for example, if your laptop is stolen from your car.Coverage limits usually range from $10,000 to $100,000.

To ensure you have adequate coverage, create a detailed home inventory of your belongings and their estimated values.Personal Liability CoverageLiability protection covers you if you’re held responsible for injuries or damage to others’ property.For example, this coverage would apply if a guest slips and falls in your apartment or if you accidentally damage a neighbor’s unit.Typical liability limits range from $100,000 to $500,000If you want extra protection, an umbrella insurance policy can extend your liability coverage beyond those limits.Medical Payments CoverageMedical payments coverage helps pay for injuries sustained by others on your property, regardless of fault.

This is usually separate from broader liability protection.Additional Living Expenses (ALE) CoverageAlso called loss of use coverage, ALE helps with costs like hotel stays, short-term rentals, meals, and other expenses if your unit becomes uninhabitable after a covered loss.ALE limits are typically set as a percentage of your personal property coverage, around 30% to 40%.What Renters Insurance Doesn’t CoverThere are important exclusions to keep in mind.Renters insurance does not cover:Additionally, high-value items such as jewelry, antiques, and collectibles may need scheduled personal property coverage, an endorsement that adds extra protection for those items.Is Renters Insurance Worth It?Renters insurance is a classic example of low cost, high coverage.The average policy is highly affordable for most people, about $10 to $30 a month.

For a small investment, you can protect thousands of dollars’ worth of belongings and gain peace of mind against risks such as theft, weather damage, or liability claims.Even if your risk feels low, having coverage ensures you’re prepared for the unexpected.Keep in mind, many landlords require proof of renters insurance before approving tenants.How to Choose the Right Renters Insurance PolicyTo find the best fit, start with a home inventory checklist of your belongings and their estimated values, including high-value items.Next, compare quotes.Pay attention to:Final TakeawaySo, what does renters insurance cover? In short: your personal property, liability, and additional living expenses.

It’s a simple, affordable way to protect yourself from common and costly risks as a renter.Contact Atlas Insurance Brokers today for a free renters insurance quote.