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.

Last update: Tuesday, July 05, 2005