Budget & Finance > Home InsuranceJuly 19, 2007

Most people wouldn't imagine driving a car without insurance. After all,there's no telling what could happen tomorrow, a week from now, or in thenext five minutes. Yet thousands of students rent homes and apartments without even considering renter's insurance.

Won't my landlord will cover it?

According to a recent survey, 33 percent of renters didn't have renter's insurance because it was too expensive. Six percent of the respondents said they thought their landlord's policy would cover their stuff, and 27 percent said they didn't think they had enough property to warrant gettinginsurance.

Most people didn't know that their landlord's policy only covers the brick and mortar of the building, not the renter's personal belongings. Plus, arenter's policy can also cover personal items left in the person's car, where car insurance only covers the car.

At risk at home

It might be easy to write renter's insurance off as an unnecessary expense, but renters are actually more likely to have thefts from both their home and their vehicle as opposed to people who own their home.

The U.S. Department of Justice showed statistics that burglary rates forrented households were 79 percent higher than owned households, and the burglary rates for autos were nearly twice as high for renters as owners.

Burglaries aren't the only way to lose property. Fires, vandalism, floods,storms, tornadoes and other acts of God happen every day. And though the property may not seem like much, it can add up quick in a total loss. The only way a renter can be protected is to have renter's insurance.

Consider your options

Renter's insurance can be tailored to your situation. It never hurts to shop around, but the rates shouldn't break your budget, running between $10 and $13 a month for $40,000 of coverage. Renters may also be able to get discounts on their deductible if they are over 55, retired, have a homesecurity system or have other policies with the same insurer.

Be sure to know what you're getting too. Property losses from many kinds ofdamage can be covered: everything from water damage from home utilities and falling objects to fire, lightning, hail or windstorm.

Renter's insurance also comes with liability protection, which may surprise a lot of people. If somebody gets hurt while horsing around at your place, they would be covered under your renter's insurance.

Keep track of what you own

Coverage choice should be based on a carefully documented analysis of your possessions. A $600 couch, $200 television, $250 iPod and $1,500 computer add up quickly, and that's not even counting all the other minor possessions like lamps, light bulbs, pots, pans, books, CDs, DVDs, toothbrushes, clothes and shoes that would need replacing if a fire destroyed your home or apartment.

It's estimated that the average renter has somewhere in the neighborhood of $20,000 worth of property. That's a lot of property to leave uninsured, and can be a huge loss after a disastrous event. Renters should also keep receipts, as well as video or photographic evidence of the items they own. Trying to remember it all in the emotional aftermath of a robbery or a disaster would be nigh impossible, and that evidence will make it easier when filing a claim.

About The Author: Kenneth Quist is the president of Premere Agency. Visit www.premereagency.com for a free insurance quote or call (918) 447-0960 to learn more about rental insurance.

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