Definition - What does Tenants' Insurance mean?
Tenants' insurance provides insurance coverage for someone who is renting a property. A renter can use this type of coverage as property insurance to replace their belongings in case they are ever stolen or lose. Tenants' insurance can also provide liability coverage to protect the renter in case they are sued for causing damages while renting their apartment.
Insuranceopedia explains Tenants' Insurance
Renters are not covered by their landlord’s homeowners' insurance policy. If there is ever a loss, the landlord’s insurance would pay for the landlord’s property, but not for the property of the renter. As a result, if there is ever a fire or a burglary, the renter would be forced to replace any property or belongings out-of-pocket.
Renters can also be sued for their actions. For example, if they forget to turn off the bathtub faucet and flood the apartment downstairs, the person downstairs can sue the renter. With tenants' insurance, the renter would be protected in these types of situations.
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