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Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord’s insurance. In most cases, renters insurance covers only the value of your belongings, not the physical building, so the premium is surprisingly inexpensive.

By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.

Do I need separate coverage for jewelry?
A standard homeowners and renters policy offers only limited coverage for jewelry and other precious items such as watches, fine arts, silverware, cameras, and furs. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss. This provides you with broader coverage and waives the deductible.

Scheduled Personal Property
If you own valuable jewelry, you can increase coverage by “scheduling” your individual pieces through the purchase of “floater” policies. Scheduling each piece may cost more in premiums, but it offers broader protection because the floater covers losses of any type, including accidental losses –such as dropping your ring down the drain of the kitchen sink or leaving it in a hotel room—that your homeowners insurance policy will not cover. Before purchasing a floater, the items covered must be professionally appraised.

How do I take a home inventory and why?
Would you be able to remember all the possessions you’ve accumulated over the years if they were destroyed by a fire? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

Start by making a list of your possessions, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. For major appliance and electronic equipment, record their serial numbers usually found on the back or bottom.