How to Obtain Renters Insurance

Just because your landlord owns the building doesn't mean he or she is responsible for covering your belongings in the event of a fire, theft or other nasty event. Even if you think all your worldly possessions don't amount to much, don't overlook this critical form of protection.

Difficulty: Easy

Instructions

1. Shop around, starting with the auto insurance company--you may be able to tap into volume discounts if you have more than one policy with a company. Then check other agents and online insurance services. As a rule, renter's insurance is cheap--a couple hundred dollars a year should easily buy upwards of $15,000 in personal belonging protection and several hundred thousand dollars of liability coverage. Get your landlord's requirement in the lease or rental agreement for minimum coverage.

2. Investigate what the renter's insurance policy covers. Beyond protecting you if your property is stolen or lost in a fire, or suffers water damage, it must also offer liability coverage if, for instance, you leave the iron on and cause a fire.

3. Think you don't have much stuff? The average renter has more than $20,000 worth of belongings which may include expensive electronic equipment, bikes and small appliances. Photograph or videotape each item, list when you acquired it and its purchase price or current value. Keep your list in a safe deposit box along with the photos and videotape.

4. Spend a little more and get replacement coverage. This guarantees that your property will be replaced at current value, not what you bought it for originally.

Tips & Warnings

• You may qualify for a discounted premium for having fire or smoke detectors or burglar alarms. (See How to Buy Fire Extinguishers and How to Buy Smoke Alarms.)
• Check to see if your policy covers computer equipment, cell phones and other electronic gear. If not, you'll have to buy separate floater policies to cover them. Make sure you frequently back up computer files you can't afford to lose and store them in a separate location.