Renter’s Insurance: what it covers, what it doesn’t, and why it matters. Renter’s insurance is one of the most misunderstood aspects of renting. Many residents believe they are “covered” simply because the property has insurance—or because their property management company offers a liability policy. Unfortunately, that’s not how it works.
What Renter’s Insurance Actually Covers
A standard renter’s insurance policy typically includes:
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Personal property coverage (furniture, electronics, clothing)
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Loss of use (temporary housing if the unit becomes uninhabitable)
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Personal liability (if you cause damage or injury)
Without renter’s insurance, residents are financially responsible for replacing their belongings after events like fires, leaks, or theft.
What the Property Owner’s Insurance Does Cover
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Covers the structure
- Protects the owner from liability
- Potentially loss of rent
What the Property Owner’s Insurance Does Not Cover
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Does not cover a resident’s personal belongings
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Does not cover a resident’s hotel or relocation costs
This is one of the biggest misconceptions we encounter.
About Liability-Only Policies
FBS offers a liability-only policy option for residents. This policy:
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Covers liability related to damage to the home
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Protects the property
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Does NOT cover personal belongings
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Does NOT cover loss of use or relocation costs
This option exists to protect the property—not to replace comprehensive renter’s insurance.
“You Get What You Pay For”
Low-cost insurance options often come with:
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Lower coverage limits
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Fewer protections
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More exclusions
When residents choose the cheapest option, they are accepting limited protection. That choice becomes very real after a loss.
Why Renter’s Insurance Is Worth It
For a relatively small monthly cost, renter’s insurance provides:
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Peace of mind
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Financial protection
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Faster recovery after emergencies
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Reduced conflict during stressful situations
We strongly encourage residents to carry a full renter’s insurance policy, even if a liability-only option is available.
The Bottom Line
Insurance isn’t about expecting something bad to happen—it’s about being prepared if it does. Understanding what your policy covers (and what it doesn’t) protects you from financial hardship and unnecessary disputes.
If you’re unsure about your coverage, now is the time to review it. After a loss, it’s too late to upgrade.
