AAA renter's insurance provides coverage for personal property, medical expenses, personal liability and additional living expenses, according to the AAA website. It protects the renter in the event of litigation arising from a covered loss on the premises. It also protects against damages from losses occurring due to personal activities, including damages caused by pets and children.
Typically, AAA renter policies cover the value of personal property, including clothing, furniture, home electronics and other items, notes the AAA website. AAA advises renter's insurance policyholders to take an inventory of their personal items when establishing a policy in order to determine replacement costs if a claim is filed. Usually, the cash value is different than the replacement value. The policyholder is reimbursed the cost of replacing the value instead of a depreciated value of the item.
AAA renter's policies provide protection for the policyholder if the person is forced out of the property due to a covered loss. The policy pays additional living expenses that vary based on the policy and are usually limited to no more than 40 percent of the total available coverage on the policy.
Renter's policies provide coverage to renters, while homeowner's insurance covers the actual structure and is usually purchased by the landlord or property owner.