Renters insurance protects your personal property in a rented apartment, condo or home from unexpected circumstances such as theft, a fire or sewer backup damage – and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property. The two types of renters coverage:

Actual Cash Value coverage will reimburse you for the value of the items at the time of the damage or loss.
Replacement Cost coverage covers the cost it takes to replace the items lost or damaged
What does renters insurance cover?
Renters insurance generally provides four types of financial protection

Personal property damage: If your property is damaged, renters insurance will cover the cost of the damage up to your policy’s limits. Covered “perils,” as insurers call the various causes of damage, are specifically named (or not excluded) in your policy such as fire, wind or theft.