What is the primary purpose of renter's insurance?

The primary purpose of renter's insurance is to cover personal property and liability in a rented residence. This type of insurance is designed specifically for individuals who lease their living space and need protection for their belongings—such as furniture, electronics, and clothing—in the event of theft, fire, or damage. Additionally, renter's insurance often includes liability coverage, which can help protect the policyholder if someone is injured in their rented home or if they accidentally cause damage to someone else's property. This coverage ultimately provides peace of mind for renters, knowing that their personal assets are protected against unforeseen events.

Other options do not accurately reflect the intended purpose of renter's insurance. For example, coverage related to the structure of a home is typically the responsibility of a landlord's insurance policy, not a renter's policy. Coverage for business expenses or protection against unemployment is unrelated to the needs of someone renting a home and falls under different types of insurance products.