Core Insights - Renters insurance provides financial protection for tenants against losses related to personal property, liability, and additional living expenses, with average premiums ranging from $15 to $30 per month [1][15][21] Coverage Components - **Personal Property Coverage**: Covers personal belongings against damage, loss, or theft due to covered perils, including furniture, clothing, and appliances [4][6] - **Liability Coverage**: Protects against financial loss if the insured is sued for bodily injury or property damage, typically starting at $100,000 [8][9] - **Additional Living Expenses**: Covers costs for temporary living arrangements if the rental unit is uninhabitable due to a covered loss, usually limited to around 20% of the personal property coverage limit [11][14] Types of Policies - **Actual Cash Value (ACV)**: Covers personal belongings at depreciated value, resulting in lower premiums and payouts [7] - **Replacement Cost Value (RCV)**: Covers items at their original value without depreciation, leading to higher premiums but larger payouts [7] Exclusions - Common exclusions in renters insurance include floods, earthquakes, normal wear and tear, and damage to the physical structure of the building [18][26][27] Purchasing Process - Tenants should research insurance companies, compare quotes, and understand coverage needs before purchasing a policy [17][23]