It's no secret that you should have renter's insurance to cover your belongings in the event of loss. What you may be surprised to learn is that your insurance may cover more than just the loss of you stuff through fire or through water damage. Read on to learn more about what these policies can do for you, and learn why it is imperative for every renter to carry one.

Coverage #1: Personal Property

Your property is covered up to your policy limits whether it's destroyed by a disaster or if it is stolen. You may not think you own much of value, especially if you have older furniture and clothing, but the replacement cost can be a major stress on your budget. Having insurance removes this burden. Your policy covers all of your belongings, even if they are stored in a detached garage at your rental or at an offsite storage locker.

Coverage #2: Liability

If you have guests over, make sure your policy has liability coverage. This coverage level can vary between policies. This coverage protects you from a lawsuit if someone is injured while visiting you inside your apartment or rental home. Your landlord isn't responsible for any injuries that take place outside of common and public areas on the property, so you are responsible for everything that happens inside your rental.

Coverage #3: Emergency Living Expenses

Burst pipes or a recent fire leaving you temporarily homeless? No worries, your renter's policy can cover your stay in a temporary rental or hotel. This is called loss-of-use coverage and it will cover your stay if you must leave your rental due to a covered incident up to the limit outlined on your policy.

Coverage #4: Damage Riders

Some disasters aren't commonly covered on a renter's policy. This may include flood damage or earthquake damage. If you live in an area susceptible to flooding or earthquakes, you can purchase an additional rider to cover your personal property in the event of one of these disasters. Keep in mind that the water damage coverage on your standard policy is for damage caused by burst pipes or similar issues, not for storm flooding.

Coverage #5: Valuables

If you own something particularly valuable, such as a rare painting or piece of jewelry, you may want to purchase additional coverage for the specific items. This ensures that your coverage limits are sufficient to cover the replacement of your normal personal belongings and the value of your more valuable items in the event of loss.