Though it is n’t required by law, renter’s insurance policy is important because it protects your properties—furniture, clothes, gadgets—in case of disasters or theft. It also covers temporary housing and liability protection or damages due to negligence. If someone slips on the ice or banana peel outside your door and necessitates immediate medical attention, your insurance will be responsible for his or her checkups and medication. Should that person decides to sue you, your renter’s insurance policy got you covered.

So what exactly will your policy cover?

• Personal property

The majority of renter’s policies protects your belongings in case of disasters and other events that are out of your control. So if you live in a flood-prone community or near a fault line, it’s wise to get a policy for this. However, some types of belongings can only be covered up to a certain limit set by the insurance company. So if you own expensive jewelries and other valuable properties, you should consider adding personal articles policy to your existing renter’s insurance policy.

• Liability

Your insurance policy also covers the damages you need to settle for any bodily injury or property damage that are caused by mere negligence. Business pursuits, intended bodily injuries, as well as vehicle-related injury or damage is n’t covered by the renter’s insurance.

• Loss of use

This part of your policy covers your living expenses, such as food, hotel and other expenses, if ever you need to leave your home after it’s been damaged by an accident. The expenses you incurred while your house is being restored will be covered.

These are the basic components of a renter’s insurance policy. You can choose to add a few other types should you see the need for them. You can consider "medical payment to others" policy, credit card , bank forgery coverage, and "property of others" coverage.