Umm, well, accidents happen. And stuff is expensive. So, say, a pipe bursts and the leak destroys your furniture or a thief breaks in and steals your laptop. If you have renters insurance, you won't have to replace all that stuff out of pocket. You can file a claim and get reimbursed for damaged or stolen possessions. No - this is insurance we're talking about, and, as with all policies, there are coverage limits. With renters insurance, those limits come in two forms. There's an overall limit, specifying how much money your policy pays out in total and there are individual limits on things that are super-expensive.
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