Protect your household assets with renters insurance

People who own their homes never think of having a separate policy to cover their household goods. Household items come under the umbrella of homeowner’s insurance. However, if you rent your home, do you know that you have no such protection? If someone breaks in and robs you, you have no recourse whatsoever. Your landlord is not responsible and you end up taking the loss. In the case of your house being cleaned out in a robbery, this can be a catastrophe. Natural disasters can leave your home assets at zero just as well. Most renters have no idea this is the case until it happens to them. If you rent, you need renters insurance.

Renters insurance policies are usually quite reasonable and may be bought through many insurance brokers right in the yellow pages. Some specify that they sell renters insurance. Usually brokers who sell homeowners insurance sell renters insurance as well.

While the homeowner’s kitchen countertops, fireplace, bathtub and other such permanent fixtures, as well as movable furnishings are covered through homeowners insurance, renters coverage works a little differently.

As a renter, you need only insure the furniture and moveable items that belong to you. Fixed items, which belong to the landlord, are his headache. This is one reason renters insurance is quite reasonable. Your premium covers only your personal property.

Before you call for quotes, you’ll want to list all of your personal property which you wish to cover with renters insurance. Make a separate category for electronics, furniture, miscellaneous household items and anything of value, whether its stored in the garage or used every day in your home.

With electronics items, record serial numbers and make a photocopy of the receipt, if you have it. In addition, take pictures of each item to show the condition of the piece. If someone robs your home, taking only your laptop and a fancy camera, this can add up to big bucks. Having the serial number, a photo and receipt can be of help in identifying and recovering your stolen goods.

Go room by room, photographing each item of furnishings you wish to insure. This helps to establish the value in the case that you have no receipt.

When you call a broker for a quotation on renters insurance, ask about different coverage plans. Do they cover flood or earthquake damage? If so, what is the extra on the premium? Make sure you nail down the fine print and comparison shop. There can be a wide variance on premiums and extra coverage.

Unbelievably, most renters do not have renters insurance. Don’t you be caught as one of the sad statistics – minus your assets and nothing to show for it!