Renters Insurance
InsuranceGlossary term
Definition
Insurance that covers a renter's personal belongings against theft, fire, and certain other damages, plus provides liability protection. Typically costs $15-30 per month and is not covered by a landlord's building insurance policy.
Related terms
- Liability CoverageInsurance protection that pays for damages or injuries you cause to others. Included in auto, homeowners, and renters insurance. Covers legal defense costs, medical bills, and property damage claims up to your policy limits.
- Replacement CostAn insurance reimbursement method that pays the full cost to replace damaged or stolen property with a similar new item, without deducting for depreciation. Provides more comprehensive coverage than actual cash value but results in higher premiums.
- Actual Cash ValueAn insurance reimbursement method that pays the replacement cost of an item minus depreciation. A five-year-old laptop originally worth $1,500 might have an actual cash value of only $400. Policies using this method cost less but provide lower payouts.
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