What is renters insurance?

Renters insurance is a type of insurance policy specifically designed to provide coverage for a renter's personal property. This coverage typically includes protection against risks such as theft, fire, and certain types of water damage, allowing individuals who rent their homes to safeguard their belongings.

In addition to personal property coverage, renters insurance often includes liability protection, which can cover legal expenses if someone is injured in the rented space or if the renter accidentally causes damage to someone else's property.

The other options do not accurately describe renters insurance. A policy to protect a homeowner's property pertains to homeowners insurance rather than renters insurance. Insurance specifically for investment properties would relate to commercial or landlord insurance, not renters. Therefore, the correct answer clearly identifies the focus and purpose of renters insurance in providing essential coverage for individuals without owning property.