Renter's insurance can be a great thing to have. In the event of a flood, a fire, or even a break-in, it can cover costs that may otherwise be unaffordable, and help you replace your possessions. One thing to keep in mind, though, is that renter's insurance covers your belongings, not the landlord's belongings. However, it does also cover damage you do to your landlord's property, such as broken windows or burnt carpets.

When Rental Insurance Counts

Unless you paid for and installed them yourself, carpets are your landlord's property. If the burn was there before you moved in, you shouldn't be responsible for the damage. Your landlord's homeowner's insurance should cover the cost of repairs. However, if you caused damage to your landlord's carpet, your renter's insurance should cover it. Be aware, though, that there may be a hefty deductible, depending on your policy.