Renters Insurance is one of the most affordable and comprehensive coverages available. But surprisingly, only 41% of renters are properly insured. Renters insurance is very similar to a homeowner’s policy in that reimburses you when something bad happens, including basic coverages for liability and medical payments. For example, let’s say your neighbor’s pipe bursts and your home begins flooding. Insurance will cover the costs to replace your belongings and any temporary living expenses if you need to relocate (up to policy limits).