Insurance

Renter's Insurance

While we all know that homeowners need insurance, what about the rest of us? How can you protect your possessions and protect yourself from liability suits if you rent your home? Renters insurance is the answer. It is inexpensive, easily available from many insurance companies and can provide you with critical financial protection for all sorts of situations.

When you rent your home, your landlord has homeowners insurance coverage designed specifically for rental properties.  This covers the structure, the land and the appliances, per his agreement with the insurer. If the roof caves in, it is not your problem as the tenant. If your couch is destroyed by the roof caving in, it is not his problem as your landlord. His insurance does not, however, cover your personal belongings. If you need to protect your furnishings, clothing, electronics and other goods you need an insurance policy of your own.

Renter's insurance also provides liability protection. If you are sued due to negligence on your part, your insurance policy will offer some amount of protection. You can also incorporate coverage in case of issues involving your pets in this policy. This is especially critical if you have valuable assets to protect, whether those are cash, personal property or a home.

The first place to start if you are shopping for renter's insurance is with an insurance agent you already deal with. If you have auto coverage, life insurance, or other services with a specific company, consult your usual agent. Many insurance agencies offer a wide variety of policies and you can often get discounts if you carry multiple policies with one company. You should talk to an insurance agent about a comprehensive policy that provides coverage for theft, fire, water damage and other possibilities. In some areas, you may be able to add flood protection for an additional fee. Make sure you purchase enough coverage to replace your possessions, including clothing, electronics and household goods. If you have any items of special value, including collections, artwork, electronics or jewelry, you should speak to the agent about carrying special additional coverage on these items. If you run a home business, you may need special coverage, either for possessions or liability.

Many renters believe that since they do not own the structure of their home, they do not need insurance. Imagine, however, if you have a fire in your home. If you have renter's insurance, fairly quickly you will have the money you need to get settled in a new home, replace your clothing, furniture and goods and be on your way in life. Spending just a few dollars a month for this vital insurance coverage can provide you with critical long term financial protection.

Editor's Note:

Keep in mind that Renter's insurance can be a LIFESAVER if you get robbed or if something gets stolen out of your car. Your auto insurance does not cover property stolen from your car and only your renters insurance will cover this and it only costs a small amount per year for this or monthly depending on the provider. GEICO is one name that provides reliable renters coverage for your apartment, car, townhome, condo, mobile home, or rented property.