What does a tenant policy typically cover?

A tenant policy, also known as renter's insurance, primarily focuses on protecting the personal belongings of a tenant within a rented property. This policy typically covers personal property, such as furniture, electronics, and clothing, against risks like theft, fire, or vandalism.

Additionally, tenant policies often include coverage for Additional Living Expenses (ALE), which are incurred if the rented dwelling becomes uninhabitable due to a covered loss. This could involve costs for temporary housing, meals, and other necessary expenses while the tenant is unable to live in their home.

The emphasis of a tenant policy is to safeguard the tenant’s own possessions and provide financial assistance for unexpected costs incurred due to significant damages or losses, making this option the most comprehensive and aligned with the core purpose of a tenant policy.