Renters' insurance, often called tenants' insurance, is an insurance policy that provides some of the benefits of homeowners insurance, but does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure. It provides liability insurance and the tenant's personal property is covered against named perils such as fire, theft, and vandalism. It also pays expenses when the dwelling becomes uninhabitable.

Due to renters insurance existing mainly to protect against losses to the tenant's personal property and provide them with liability coverage but not to insure the actual dwelling, it's significantly less expensive than a homeowners policy.

The owner of the building is responsible for insuring the dwelling itself but bears no responsibility for the tenant's belongings.

Many large and medium-sized rental properties include a requirement in their lease that tenants hold renters insurance. If the tenant damages the premises, the landlord and other tenants can recover against the perpetrator's insurance. It is important to know what type of damage your insurance covers. Essentially, there are three types of coverage available: loss of use, personal property, and personal liability.