A renters insurance policy is a contract between you and an insurance company that financially protects your personal property in a rental unit. In the event your belongings are damaged or stolen, the insurance company guarantees they will pay to replace them so long as you make your monthly payments. There is a limit to how much they will cover, known as the policy value, that you and the insurer decide upon when the policy is created.
Note: Most policies will not cover damages resulting from large-scale events such as earthquakes, floods, or landslides. They will also not cover any intentional damage. Check your policy for coverage details.