We Know: All about Renter's Insurance

What is Renter's Insurance?

Renter's insurance protects your property against damage or loss, and insures you in case someone is injured on your property. It may pay for accidents that occur on your property or damage to others' property.

Doesn't my Landlord's Insurance cover my Property?

Your landlord's insurance does not cover your personal property - clothing, furniture, electronics, appliances, computers, jewelry or anything else. Therefore, if you have a substantial amount of property within the rental unit, you should consider buying renter's insurance.

What Should my Renter's Insurance Cover?

Renters generally secure enough coverage to replace their personal possessions if they were stolen or destroyed. You may need supplementary insurance that would cover for damage caused by floods, or an earthquake.

What will My Renter's Insurance not Cover?

There may be limits on the values of specific items covered, such as computers and jewelry. You may need to add a rider (additional policy) to cover these items.

What Types of Renter's Policies are Available?

You may purchase:

  • An actual cash value coverage that considers the age and condition of the item at the time of the damage or loss. It pays only the amount it would cost to replace it with an item of similar condition.
  • Replacement cost policies cover the cost to replace lost items with comparable new items. Replacement value policies generally are more expensive and may have restrictions.

What Should I look for when Shopping for Renter's Insurance?

When shopping for renters insurance you need to:

  • Compare similar policies between companies, with the same deductibles and levels of coverage. You should have a basic description of your property; the distance from the nearest fire department and fire hydrant; a list of any security devices in your home; and the coverage and limits you want.
  • Read your policy carefully and make sure you understand its terms. It is a contract between you and your insurance company. Do not sign it unless you understand what is covered, your responsibilities and rights and the limits of your coverage.

How can I Lower my Insurance Premium?

You can lower your insurance payments if you:

  • Ask about discounts for combined policies (with auto) or if are not a smoker.
  • Choose the highest deductible you comfortably can afford. The higher the deductible you choose, the lower your insurance premium.
  • Install anti-theft and safety devices

What will I Need if my Possessions are Damaged or Stolen?

You will need to keep an accurate list of your possessions, their purchase prices, model numbers and serial numbers. Store this list and photos or a video of your possessions in a safe-deposit box or other secure site away from your home.

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