When you rent an apartment or house, insuring the structure is the responsibility of the landlord, since it’s their property; however, this doesn’t cover your belongings in the unit: furniture, electronics, jewelry, etc. If the unit burns down, the landlord’s insurance company is responsible for repairing the building, and they won’t reimburse tenants for losing personal property.
Tenants insurance bridges this gap. Like home insurance, it covers additional living expenses in case you need to temporarily move following a claim, as well as liability coverage. This is similar to liability for home and car insurance: if someone is injured on the rental property (or off, and it’s your fault), the insurance company covers the costs of a lawsuit.
Tenants have the option of getting all-perils or named-perils coverage for tenants insurance, similar to home insurance. All-perils covers everything in the home, and only items that are specifically listed in the policy as excluded aren’t covered. Named-perils works the other way around—nothing is covered unless it’s specifically listed in the policy.
It’s worth noting that there are limits to coverage when it comes to specific items like jewelry or other expensive things. If there’s something very valuable in your home, it’s best to notify your insurance broker, and they’ll make sure the items that mean the most to you are properly covered.