If you rent a home, apartment or condo and believe that insurance is not necessary for your personal property, you may face tremendous loss in the event of theft, fire, or natural disaster. Individual items can differ in value, but collectively your personal property may be costly to replace. Your landlord’s insurance policy will not cover your personal effects; renter’s insurance will protect you in the event of a loss.

What Is Covered by Renter’s Insurance?

Renter’s insurance will typically cover the loss of items in cases of:

-- Theft

-- Vandalism

-- Fire/Smoke Damage

-- Windstorm/Hail/Lightning

-- Explosion

-- Damage from vehicles or aircraft

For personal property, renter’s insurance covers items like:

-- Furniture

-- Clothes

-- Books

-- China

-- Televisions

-- Stereo equipment

-- Cameras

Some policies may also have limited coverage for things like:

-- Jewelry

-- Personal computers

-- Art

-- Rugs

Renter’s insurance may also cover some of your living expenses if your rental residence is damaged, for example, by fire. If you have renter’s insurance, the insurer will pay some of the costs for your relocation expenses while the property is repaired.

Renter’s insurance may also provide liability protection if someone is injured in your residence; ask your insurance agent to explain exactly how much liability coverage you have.

What Is Not Covered by Renter’s Insurance?

There are some hazardous conditions that a standard renter’s insurance policy will not cover, however, you may be able to purchase additional coverage for:

-- Earthquakes

-- Hurricanes

-- Flooding

-- Landslides

-- Nuclear damage

Also note that some insurers may be reluctant to cover pets, so pet owners may have to investigate this type of coverage.

Additional Resources:

-- American Renters Association On-Line Renters Insurance Guide:

http://rentersinsurance.com/index2.asp?ref_id=6000

-- American Red Cross Questions and Answers About Rental Insurance:

http://www.prepare.org/basic/RentInsure.pdf

-- Insurance Information Institute’s Guide to Renters Insurance

http://www.iii.org/individuals/homei/hbasics/renters/