What is the name of the insurance policy that covers a tenant's personal belongings and liability?

The insurance policy that covers a tenant’s personal belongings and liability is renters insurance.

Also called tenants’ insurance, renters insurance protects the tenant rather than the building’s main structure. Typical policies cover personal property against listed perils such as fire, theft, and vandalism. They commonly include personal liability coverage if the tenant is legally responsible for injuring someone or damaging property, plus loss-of-use coverage when the rented home becomes uninhabitable after a covered event.

The landlord’s property insurance generally covers the building itself, but it does not normally replace the tenant’s furniture, clothing, electronics, or other belongings. That distinction is why renters insurance is usually less expensive than homeowners insurance. A policy’s limits, deductibles, exclusions, and valuation method—replacement cost or actual cash value—still matter.

Renters insurance is not the same as homeowners insurance, which combines a resident’s property coverage with insurance for an owned dwelling. Flood damage may require separate coverage, and an umbrella policy is designed mainly to add liability limits rather than replace a renters policy.