How to Buy Renters Insurance

Posted on 5.18.07 Print This Article

Renters insurance is an insurance policy that protects you from a variety of complications that may affect you as a renter. It protects you in the event of a catastrophe.

Insure.com provides the following list of losses that are included in an HO-4 policy, which cover renters (HO-6 policies cover condo owners):

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riot or civil commotion
  • Aircraft
  • Smoke
  • Vandalism or malicious mischief
  • Theft
  • Damage by glass or safety-glazing material that is part of a building
  • Volcanic eruption
  • Falling objects
  • Weight of ice, snow, or sleet
  • Water-related damage from home utilities
  • Electrical surge damage

If you live in an area where flood, hurricane or earthquake is a possibility you will need to purchase a separate policy or a rider in order to protect yourself against these threats.

A good place to start looking for renters’ insurance is your auto insurance company; you may get a better rate for establishing multiple policies. Then you need to consider how much you want your policy to be, and what type. Your options are Actual Cash Value policies or Replacement Cost policies. Be sure to document and let your insurer know about any really valuable possessions like jewelry or really expensive electronic equipment. If your apartment has installed smoke detectors, fire or burglar alarms, you may be eligible for a discount, so be sure to mention these when you purchase your policy.