Jim, I am now renting a house after just selling my home and moving. I have never rented before and need advice about what insurance I need to buy as a renter.

Many renters mistakenly believe that they don’t need insurance.  The common misconception is that the landlord’s insurance will protect their personal property.

Renters insurance provides protection against theft and fire, the most common risks. A typical renter's policy also covers much more than that, including storm damage, water damage from plumbing, power surges, vandalism, and more.

In a typical landlord/tenant arrangement, the landlord will purchase insurance on the physical structure of the home or apartment.  This coverage is only for damage to the structure and does not extend to personal property inside the building.  As renter, you are 100% on your own and responsible to insure your own property.

The question of whether or not to have renter’s insurance at all is still a consideration.  If you are a person with modest personal property, perhaps not buying insurance (self insuring) may be an option.  For example, a young college student renting a house may simply decide that they don’t have enough value in personal property to make buying coverage worthwhile.  On the other hand, a married couple with years of accumulated ‘stuff’ may legitimately need this protection.

As with homeowner’s insurance, renters should have a good record of what they own.  Many insurance experts recommend making a video of the contents of your home at least once every six months and then storing it in a location away from the property.  Additionally, if you have them you should keep receipts for high ticket items as further proof if you need it.  If you have any especially valuable items, such as jewelry, computers, or musical instruments, you should have your insurance agent list these items (called scheduling).  An additional benefit associated with renters insurance may be protection against theft of an item, even if you are away from home.  For example, a laptop computer stolen while you are on a business trip.

Of course, as with all insurance it really does pay to comparison shop.  Expect to pay around $200 to $250 per year for about $50,000 of personal property coverage as a renter.

Agree or disagree, click on comments below.

My main website is www.ChristianMoney.com

James L. Paris