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Renters insurance will cover your personal property in the event of a loss as well as additional living expenses and liabilities that occur on the property while living in a rental property.
Theft, fire, or other losses can damage or destroy the things you own. This coverage helps to replace the things that are dear to you after a loss. Condo policies and some townhouse policies often use this coverage to protect not only your possessions but also the build out of the home in the event of a major loss.
Liability coverage is one of the most important coverages in any policy. Put most basically, liability insurance protects you from law suit.