A common and costly misunderstanding: many tenants assume their landlord's insurance protects them. It does not.
What landlord insurance covers
The landlord's policy protects the building and the landlord's interests:
- The physical structure
- Built-in fixtures and appliances they own
- The landlord's liability as a property owner
- Lost rental income after a covered event
It does not cover your belongings or your personal liability.
What renters insurance covers
Your renters policy protects you:
- Your personal belongings
- Your liability if a guest is injured or you cause damage
- Loss-of-use costs if your unit becomes uninhabitable
Why you need your own policy
If a fire destroys the building, the landlord's insurer rebuilds the structure, but your furniture, electronics, and clothing are only covered if you have renters insurance. At $15-$30 a month, it is inexpensive protection for everything you own.