Rentwise! Chapter Three -- Renter's Insurance

If your possessions are lost or damaged because of theft, lightning, fire, water or other accident, the landlord's insurance policy will not cover your loss. If your guest falls down the stairs of your rental house, you could be held liable for injuries.

Surprisingly, many renters are uninsured and vulnerable. Theft can happen anywhere at any time. Just add up the cost of the items in one room: clothes, computer, stereo, TV, jewelry, bicycle, and furniture. You may be surprised at how much you have invested. Protect yourself with a renter's policy, and keep an updated inventory of serial numbers, purchase dates, receipts and photos of expensive items. Stash these papers with a friend.

Some leases may require you to carry renter's insurance.

A typical policy pays up to $10,000 on the contents of your rental, and $100,000 in liability for medical costs in case of an accident. You can choose an "actual cash value" policy (original price minus depreciation), or "replacement coverage" which costs about 15% more. Deductibles can start as low as $100, but the higher the deductible the lower your premium.

At $100 to $150 a year, renter's insurance is a good deal and a very good idea.

You may need additional coverage for valuables such as furs, jewelry, antiques, guns or computers, but it won't cost much more. Damage from flooding may or may not be covered. Find out! All roommates should be on one policy.

To get a quote, check the yellow pages under "independent insurers."

TENANT TIP: Call your auto insurer first. If you buy renter's insurance from the same company, you may get a discount.

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