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Renters insurance protection

November 3, 2010 - Many renters, whether in apartments or homes, may not realize the value of renters insurance. If something terrible were to happen, such as a break-in or water damage, it could keep a person from possibly losing everything.

Some people may assume that they are covered under their landlord's policy. The building owner's policy only covers structural damage to the home or building, not an individual's possessions.

According to an article on Insure.com, renters' policies cover many types of damage to personal property, such as fire and lightning, theft, water damage from home utilities and the weight of ice, snow or sleet.

The article cautions prospective insurance buyers to be aware of whether the insurance company writes policies for "actual cash value" (ACV) or "replacement cost coverage." ACV means that the insurance company will only pay for the value of the property at the time it was damaged or stolen. On the other hand, replacement cost coverage pays the actual cost to replace the property.

Those thinking of moving into a rental property may want to consider insuring their belongings. The Bureau of Justice Statistics found that renters were 50 percent more likely to be victims of theft than homeowners, cites U.S. News & World Report.

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