What does renter's insurance primarily cover?

Renter's insurance primarily covers possessions within a rented property and liability, making it an essential safeguard for individuals who are renting their homes. This type of insurance provides financial protection against a variety of risks, such as theft, fire, or damage to personal belongings within the rented space.

Additionally, it includes liability coverage, which protects the policyholder in case someone is injured while in their rented home, covering legal expenses or medical costs that might arise from such incidents. This dual protection is crucial for renters, as they are responsible for their personal property but do not own the building itself. By having both coverage for personal belongings and liability, renter's insurance ensures that individuals can recover from losses and protect themselves from potential legal issues.

The other options focus either exclusively on liability or specific types of damages, which do not encompass the full range of coverage that renter's insurance provides.