Renters often don't realize it, but they face the same risks as homeowners in the possibility of a disaster happening to their dwelling. While the landlord or condo association may have their own coverage, it only protects the building, not the things in it. With renters insurance, you can protect your belongings in case of disaster.

Studies show that two out of three renters don't have renters insurance and renters can be at an even greater risk of loss by theft than homeowners. The U.S. Justice department reports that rented households were burglarized at rates 79% higher than owned households.

The standard renters insurance policy is the HO-4 and covers losses to your personal property from 16 types of perils including fire or lightening, windstorm or hail, explosion, riot or civil commotion, damage by aircraft or vehicles, smoke, vandalism, theft, volcanic eruption, falling objects, weight of ice, snow or sleet, etc.

If you live in an area prone to floods or earthquakes, a separate policy should be purchased, as there is no coverage for these risks under the HO-4.

Always look for a policy that includes replacement cost coverage vs. actual cash value. Replacement cost coverage will pay what it actually costs to replace the items lost up to the policy limits, minus the deductible and without a deduction for depreciation.

If you have items that are unusually expensive, such as a diamond ring, fine arts or antiques, you should obtain coverage under scheduled personal property so that you are ensured full recovery for their value.

It is highly recommended that you maintain an inventory of your possessions. This will ensure that you are compensated for the belongings you lose as a result a catastrophe. This written inventory should include each item; it's value and a serial number. It is also a good idea to photograph or videotape each room, including the closets, storage buildings and your garage. These items should be kept in a safe place away from the residence.

The renters policy also includes an additional living expense provision. This provides coverage for the additional living expenses you incur if your apartment or condominium is uninhabitable as a result of a covered loss. This would include coverage for rent of a temporary residence while your apartment is being repaired or replaced.

Liability protection is also included. This means if someone sues you, you are protected up to your policy limits for a covered court judgment against you, as well as your legal expenses. Legal expenses are generally outside the limit of liability, meaning those costs are "above" the limit of liability on the policy and do not reduce it.

All this protection is available for about $15 a month with $25,000 in personal property coverage with a $250 deductible and $100,000 liability. As with homeowners insurance, the premium costs can be reduced by carrying a higher deductible. In addition, most companies offer discounts for protective devices, age, or a multi-policy discount when the same company writes both your renters and automobile insurance.

Marianne Kernen, Personal Risk Manager
License #OB41230
Nevin & Witt Insurance Services
6848H Skyway
Paradise, CA 95969