How to Buy Renter's Insurance

If you're renting, your landlord's insurance does not cover your household goods in case of loss. Here's how to protect your possessions.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Calculators
• Insurance Agent
• Personal Organizers
• Inventory Sheet

1. Locate insurance companies that offer renter's insurance by consulting the yellow pages of your phone directory or an Internet search engine.

2. Contact insurance agents and ask about the terms of standard renter's insurance policies; find out if you need extra protection to insure valuables such as jewelry, art or collectibles.

3. Provide selected insurance companies with your address, along with a brief description and estimated value of your household goods.

4. Obtain estimates from selected insurance companies for renter's insurance that will provide coverage for your personal property against theft, fire and wind damage; personal liability for accidents of others on your premises; damage to property of others in your care; and living expenses if you're forced to vacate the premises during disasters or repairs.

5. Consider buying a "replacement value" policy that will reimburse you for the actual cost of replacing your goods (instead of a depreciated value on used goods) in case of loss.

6. Compare quotes and coverage levels from different insurance companies and purchase the policy that best suits your needs and budget.

Tips & Warnings

• Most renter's insurance policies include personal liability insurance as a standard feature.
• Premium rates can vary considerably, depending on the age and location of your rental unit, the crime rate in your area and other factors.

on 11/22/2005 If you own a unit in a condo, you, too, need the equivalent of renter's insurance. Your unit is insured, but your possessions aren't. In earthquake country, like California, it's not easy to get renter's insurance. Keep trying!