Renter’s insurance covers the cost of any damage or loss to your personal items that may have occurred through vandalism, theft, a busted pipe, a fire, or some other event. Personal property can include everything from your laptop to your TV to your clothes or kitchenware. If you do not have renter’s insurance and your personal property is damaged or lost from events outside of your control, then the property owners typically assume no responsibility, unless the problem was due to their negligence.

For example, if a landlord was advised that a water heater should be replaced, then failed to do so, you could file a civil suit for the landlord to take responsibility for the damages. You can also get renter’s liability insurance, which covers injury a person suffered while in your rented home. With renter’s liability insurance, that person can file a claim with your insurer to receive coverage for any associated medical costs. Assuming liability, of course, would depend on the situation.