If you’re renting a home, then you’ll need to set up tenant insurance in case of theft, fire, or water damage. Your landlord will have their own rental property insurance, but it won’t cover your belongings, additional loss of use expenses, or injuries to third parties that you are legally liable for.
Tenant insurance, also called renters insurance, extends further than contents insurance, which just covers personal property. A tenant insurance policy will typically include personal liability insurance, as well as paying for your extra living expenses if you’re forced to move away from the premises.
With tenant insurance, it’s always best to buy an All Risk or Comprehensive policy that includes full coverage for any kind of scenario. It doesn’t cost a lot more, but having that full coverage is worth it, otherwise you may only be covered for specific losses or perils. Check also that the coverage is for replacement costs rather than depreciated cost.