Final answer:
Renter's insurance is the type of policy that covers a tenant's possessions in a leased apartment. It protects against risks like theft and fire, and may include liability coverage. It's crucial to review the policy details for coverage limits and exclusions.
Step-by-step explanation:
The insurance that will cover your possessions if you lease an apartment is called renter's insurance. This type of insurance helps to protect your belongings from risks such as theft, fire, and sometimes water damage, depending on the policy. Unlike homeowner's insurance, which also includes coverage for the dwelling itself, renter's insurance is specifically designed for people who lease their living space and want to protect their personal property within it.
Having renter's insurance can be invaluable in case of an unforeseen event, offering peace of mind and financial protection. In addition to covering your possessions, many renter's insurance policies also include liability coverage, which can protect you if someone is injured while in your rented residence, or if you're responsible for damage to someone else's property. It's important to review your policy carefully to understand what is and isn't covered and consider additional coverage if necessary for items of high value or specific risks.