Renters insurance covers a policyholder's personal belongings against perils such as fire, theft, windstorm, and a variety of others. It also provides personal liability coverage for damage that the policyholder or dependents may cause to third parties. It also provides additional living expenses, known as loss-of-use coverage, if a policyholder must move while the dwelling is being repaired. Renters insurance can also include coverage for property improvements. Personal possessions can be covered for their replacement cost or the actual cash value that includes depreciation.