If you are a renting your home, you definitely need renters insurance.

You may assume that this is something your landlord covers under your rental agreement. This assumption is incorrect. None of your personal items are insured by your landlord’s policy. Personal items are defined as furniture, clothing, electronics, etc.  Basically, everything you moved into your rental property is considered a personal item. If there is a catastrophe such as flooding from a broken pipe, fire, or someone breaks into your home and steels your computer or television, you will find that nothing is covered under the landlord’s insurance and replacement of these items will be an expense out of your pocket.

Are all renters insurance policies the same?

The answer is no. Renters policies come in all shapes and sizes depending on what items you want covered in case of loss. In general, electronics,collectibles and jewelry are not items that are included in a basic renters policy. Personal injury is also another factor to consider. If someone is hurt at your home and incurs medical bills, renters policies can cover this as well.  Damage caused by pets can also be a covered item. Depending on the value of your personal items and other possible loss, you can personalize your renters insurance policy according to your needs.

What kind of insurance policy should you buy?

This article  20 questions about renters insurance you’re too embarrassed to ask” has some great questions and answers and explains, “There are two types of renters insurance policies. If you have an actual cash value policy, your insurer covers the actual cash value of your stuff, but — and it’s a big but — that’s the actual cash value of the item today, not how much you threw down for it originally. Now, if you have a replacement cost value policy, the insurer covers the cost of repairing or replacing the item at its current price. No depreciation to worry about.

Many variables determine what policy is right for you.

Factors such as deductibles, cost, limits, exclusions, add-ons and more affect the type of policy that is right for you. Seek expert information from a reputable insurance company for quotes and professional advice. If the worst happens, you will be covered.