Renter's Insurance: The Basics

One of the most overlooked things that roommates tend not to do is purchase renter's insurance. The costs are usually quite minimal and certainly worth considering as most landlord's insurance policies do not cover their tenant's belongings and more.

Both the HO-4 (renters) and HO-6 (condo owners) policies cover losses to your personal property from the following perils:
 
   fire or lightning
   windstorm or hail
   explosion
   riot or civil commotion
   aircraft
   vehicles
   smoke
    vandalism or malicious
    theft
   damage by glass/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
   and electrical surge damage

You may notice that floods and earthquakes are not on the list of covered perils. If you live in an area that is prone to them, we encourage you to to buy a separate policy or a rider on your renters insurance.



ADDITIONAL BENEFITS
 
Renter's Insurance comes with additional benefits:
 
There are certain things that don't immediately come to mind - at least not until they happen.
For example, waterbed liability is a standard provision in most policies, so if you own a waterbed, relax, we've got you covered.


LIABILITY PROTECTION
 
Liability protection is also standard with most renters policy, so if someone slips and falls (in your apartment) you'll be covered.
Suppose the person who took the spill decides to sue you, you'll be covered for what they win in court up to your policy's limit along with legal expenses.

Your premium depends on a number of factors:
 
   where you live,
   your deductible,
   your carrier
   and any additional coverage you may need

A standard renters policies without any additional coverage can cost you as low as $150 and $300 for annual coverage. 
 
So before you go into your next roommate situation, prepare for the unforeseen and you'll be starting off on the right foot. Nobody wants to file a claim or have one filed against them simply because there was no insurance coverage. Even though insurance is an "intangible", you'll be buying yourself peace of mind and protecting not just your valuables, but perhaps even friendships as well.