Renters insurance: look beyond the lease requirement

Check what you are actually buying

A landlord's building insurance generally does not insure a tenant's belongings. Yet a policy that satisfies a lease requirement may still be narrower than you expect: some renters products cover liability without covering personal property. Ask for the coverage list before treating the paperwork as a complete safety net.

The three areas to compare

• Personal property: Coverage for belongings damaged or stolen because of a covered event, subject to limits and a deductible.
• Loss of use or additional living expenses: Help with eligible extra costs if a covered loss prevents you from living in the rental. Check both the time and dollar limits.
• Personal liability: Protection for covered claims involving injury to others or damage to their property. Ask about exclusions relevant to your household.

Price your possessions room by room

Include ordinary items: clothing, kitchenware, furniture, bedding, and electronics. Their combined replacement cost can be easy to underestimate. Photos, receipts, and a simple inventory also make it easier to explain a loss.

Ask whether belongings are insured for actual cash value, which generally accounts for depreciation, or replacement cost. Then check whether expensive items face separate limits and whether an endorsement is available to increase protection.

Questions worth asking

• Are all intended people insured? Do not assume a roommate's policy includes your belongings.
• What happens if possessions are stolen from a car or while traveling?
• Does the policy cover personal property as well as liability?
• What water damage is excluded? Standard renters coverage generally excludes flood damage, so ask about separate flood protection.

Before moving day

Confirm the address, effective date, named insureds, limits, and deductible. Keep the policy and inventory accessible outside the apartment. General U.S. education only: the policy and applicable state rules determine what a claim pays.