Homeowners insurance covers losses to your home and any possessions inside it. Purchasing home insurance gives you the state of mind that losses caused by storms, fire, theft and other events will be covered. It will also cover any lawsuits from injuries that might have occurred on your property.

If you are a renter just because your landlord has insurance doesn’t mean it covers your possessions or even protects you against any lawsuits because of accidents. If your property has been broken into and items were stolen, renters insurance will cover the costs. The same is true if your property is damaged by a fire or severe weather.