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When items get damaged or ruined, renters insurance pays to repair or replace them in exchange for yearly premiums. While the landlord's insurance policy covers damage to structures like apartment buildings and condos, renters insurance protects personal possessions like clothing, electronics and furniture. Depending on the landlord's insurance policy, it often covers items like lighting, appliances and interior walls as well. If someone gets injured on the property, renters insurance releases them from financial strain and liability by paying medical bills and court costs.
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