Finance Quick Answers
I'm a renter. Do I need renters property insurance?
Almost every homeowner has homeowners insurance, because
the lender that provides the mortgage requires it. Many
renters, however, do not think about insurance on their
personal property or liability insurance. Some renters
erroneously assume that the landlord's insurance would
cover their property loss in case of a fire or other
disaster. Typically, the landlord or property owner only
carries insurance on the dwelling itself.
Most renters need coverage on their possessions in
the event that they are destroyed by fire or other
disasters, or liability coverage in case their actions
cause bodily harm or property loss for someone else.
Renters insurance (HO-4) policies give a wide range of coverage for both personal property and liability. A renters policy insures the contents inside the building--typically providing personal property protection for the same risks and perils as an HO-2 homeowners dwelling policy--but it excludes coverage for the dwelling and also personal property coverage for damage caused by glass breakage.
Brenda Procter, M.S., Consumer and Family Economics, College of Human Environmental Sciences, University of Missouri-Columbia
If you'd like to learn more about this and other personal finance topics, the University of Missouri offers 'Personal & Family Finance,' a correspondence course, through the Center for Distance and Independent Study (800-609-3727). Information about this course is available at http://cdis.missouri.edu/CourseInfo/DetailCourseInfo.asp?1985.
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Last update: Monday, July 21, 2008
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