Renters Insurance Glossary of Terms

Trusted by Parents of College Students Helping Families Get Covered with Confidence

New to Renters's insurance?

Understanding student coverage without the confusion

We know that insurance language can feel overwhelming, especially when you’re trying to protect your student’s belongings while they’re away at college. That’s why we’ve created this plain-language glossary of common renters insurance terms, complete with simple examples. Our goal is to help you feel informed, not intimidated.

Whether your student lives in a dorm or off-campus apartment, this guide will give you the clarity you need to make confident decisions.

Coverage and terms may vary. Always review your individual policy or consult a licensed agent.

Personal Property

The value of your student’s belongings (like a laptop, clothes, or bike).

Example:

If a laptop is stolen from their dorm, personal property coverage can reimburse the cost.

Liability Coverage

Pays for accidental damage your student causes to others or their property.

Example:

If your student accidentally sets off the sprinkler system in an apartment, liability coverage helps.

Deductible

The amount you pay out of pocket before insurance kicks in.

Example:

If a claim is $1,000 and the deductible is $500, insurance covers the remaining $500.

Premium

The monthly or yearly cost of the insurance policy.

Example:

Your student’s renters insurance might cost around $5 to $15 per month.

Actual Cash Value

Reimburses the depreciated value of an item.

Example:

A stolen 2-year-old TV may be valued at $150 instead of the original $300.

Replacement Cost

Reimburses the full cost to replace an item with a new one.

Example:

A stolen bike is covered for its new purchase price, not its used value.

Loss of Use

Pays for temporary housing if your student’s rental becomes unlivable due to a covered event.

Example:

If a fire damages the apartment, this helps pay for hotel stays.

Perils

Events or risks the insurance policy covers, like fire, theft, or water damage.

Example:

Theft, fire, and vandalism are usually listed perils; floods may not be included.

Exclusions

Events or items the policy does not cover.

Example:

Most renters’ policies do not cover damage from earthquakes or intentional acts.

Policy Limit

The maximum amount an insurer will pay for a covered loss.

Example:

If the limit is $15,000, that’s the most the insurer will pay across all claims.

New to Renters's insurance?

Understanding student coverage without the confusion

Ready to Protect Your Student’s Belongings?