For Renter's

Renter's Insurance

Pop Quiz

How much do YOU think Rental Insurance costs, on average, per month?
A: $200 (costs of two tickets to Seahawks game)
B: $75 (same as my cable TV bill)
C: $50 (same as my cell phone bill)
D: $15 (less then the cost of a large two topping pizza)

Surprise! It's D, rental insurance costs only around 50 cents per day!

You may also be surprised to learn that your landlord is not necessarily responsible for any damages to your personal property if there's a fire, flood, vandalism or burglary. And, even if someone's injured in your apartment, you are probably liable for their damages, not your landlord.

For the most part, renters feel like their landlord is taking care of them, and they don't have to worry about anything. But in the event of a disaster, your landlord isn't looking out for you and your property. That responsibility is yours, and it's too important to let it slide. If you want to protect yourself, you absolutely need renters' insurance.

Most of you probably haven't even thought about getting some type of insurance to cover your personal property such as your clothes, furniture, tv, etc. You can protect your belongings by purchasing renters insurance, which is similar to homeowners insurance for those who rent.

One common myth is that your landlord's insurance protects you. This is false.

Your landlord's insurance only covers the dwelling and does not cover your personal property.

Another myth is that you don't own that much stuff and that it isn't worth buying insurance. This is also false.

Your possessions are worth more than you expect. Think about the hundreds of CDs you own. At $10 per CD, you probably own a couple of thousand dollars worth of CDs. And your bed, dresser, and couch add up to several thousand dollars, as well as your stereo equipment, tv, skis, bike, jewelry, and clothing.

What Renters Insurance Protects

You may think your things aren't worth much. But the average person has over $20,000 worth of stuff. And that's stuff that's probably not covered by a landlord's insurance policy. Your renter's policy will cover your furniture, clothing, TV, stereo, appliances and other personal property subject to the policy deductible. For example, renters' insurance will pay to repair or replace personal property that is damaged, destroyed or stolen.

Limits on personal property can vary by company, but most offer at least $4,000 worth of protection. Renters' policies generally limit payment for certain losses as follows: $100 for lost cash; $2,500 for personal property used for business; $500 for valuable papers; and $500 for theft of jewelry, watches and furs.

A renter's policy normally will pay for the actual cash value of your losses. In other words, depreciation and wear and tear will be subtracted from the value of your property. Because insurance companies' rates vary widely, it pays to shop around and get premium quotes from several companies for the amount of coverage you want. It also is important to look into an insurance company's financial stability and service record.