RICHMOND — As the economy continues its downward trend, increasing numbers of people who were once homeowners may find themselves renting places to live.

Unlike homeowners who have to purchase a homeowner’s insurance policy if they carry a mortgage, renters generally have a choice regarding whether to purchase coverage. However, renters have many of the same risks as homeowners when it comes to protecting possessions or being liable for accidents at home.

Some people believe that renter’s insurance is too expensive or that they do not have enough valuables to make it worth purchasing coverage. However, replacing all of your possessions or being liable for an accident on your premises will generally cost much more than your renter’s insurance premiums. Renter’s insurance policies can cover everything from electronics to clothing to household appliances. Even a few items could add up to thousands of dollars’ worth of merchandise, which can all be covered in a basic policy.

Some renters mistakenly believe that they are protected under their landlord’s insurance coverage. This is not the case. Your landlord has insurance for structural damage to the building, and may be protected against damage caused by tenants. However, this coverage does not extend to a tenant’s personal property, nor does it protect tenants from being liable for damage they might inadvertently cause to the building (i.e. a kitchen fire or a plumbing mishap). In order to make sure that tenants’ belongings are protected, some landlords may require their tenants to purchase a renter’s insurance policy.

Consumers who are accustomed to owning their own home may not understand the differences between homeowner’s and renter’s insurance. The State Corporation Commission’s (SCC) Bureau of Insurance encourages anyone considering renter’s insurance to ask the following:

1. How much renter’s insurance do I need? Talk to your insurance agent or company about the property you want to protect and the property hazards against which you would like to be insured. Your agent can give you policy coverage specifics based on the type of policy you want. They can also answer any questions you have about:
   • What hazards are included in your plan and if you need a separate policy for specific circumstances
   • If your insurance plan affects your roommate(s), if any
   • How you should determine value for your items
   • What some of the insurance terms mean or what they include
   • What optional coverage might be available to you
   • How much liability coverage is included in your plan
2. What, if any, discounts can I get on renter’s insurance? Many insurers will reduce your premiums if your residence has safety features such as fire or burglar alarms, fire extinguishers, sprinkler systems, and/or deadbolts on exterior doors. Some companies might also offer discounts if you have more than one policy with them.
3. Am I covered in the event of a flood or earthquake? These natural disasters typically are not covered by a renter’s or homeowner’s insurance policy. Ask your insurance agent or company if your policy fully protects you, or whether you need to purchase additional coverage.
4. Does renter’s insurance only cover me when I am at home? Many policies do not limit protection to home-based situations. Items you have insured often are covered if they are stolen by someone who breaks into your car or if they are damaged while not on your property.
5. Is personal liability included? A renter’s insurance policy covers your property and your personal legal responsibility (or liability) for injuries to others and/or their property while they are on your property.
6. Will I receive additional living expenses if I have to live somewhere else while my apartment is being repaired? If there is damage to the building you are renting and you must live elsewhere while the building is being repaired, you will have coverage for additional living expenses incurred during the reconstruction period.
7. How do I expedite my renter’s insurance claim? A home inventory – along with photos and proof of ownership – make it easier to file an accurate, detailed insurance claim in case your home is damaged or destroyed in a disaster. A home inventory can also help you determine how much coverage you need from your renter's insurance. For a free home inventory checklist, visit the National Association of Insurance Commissioners’ (NAIC) website at www.naic.org/index_disaster_section.htm.

For additional information about renter’s insurance, contact the Bureau of Insurance Property and Casualty Division at (804) 371-9185 or toll-free (in Virginia) at 1-800-552-7945 or visit its website at http://www.scc.virginia.gov/boi. Consumers who are deaf and hearing or speech impaired may call through the SCC’s Telecommunications Device for the Deaf and hard of hearing (TDD) at (804) 371-9206. Additional information may also be found on the NAIC website at http://www.insureuonline.org/.

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