There is a common misconception that when renting a place to live, you are covered under your landlord's homeowners insurance policy. This is a fallacy, as most landlords' policies only cover the outside of the building and its infrastructure. But a renter's insurance policy will cover your belongings from theft and damage and destruction from fire, lightning, smoke, windstorm or hail and vandalism while living in a rented complex. In addition, some renters insurance policies provide liability coverage should a guest sustain an injury while in your home or if their property is damaged while on your premises. Some renters insurance policies will even cover your living expenses if you're forced to live elsewhere due to a covered loss.