If you don't get renter's insurance, you may regret it

By Michelle Singletary

If you're renting, you should have renter's insurance.

Alas, a recent survey has found that almost two-thirds of the 81 million people living in rental units don't have renter's insurance.

This is not smart.

And don't even fix your mouth to say, "I can't afford it." This is perhaps the cheapest insurance you can get. Skip just one movie a month (including the popcorn and soda) and you can afford renter's insurance.

The average cost of renter's insurance is $12 per month for about $30,000 of property coverage and $100,000 of liability coverage, according to a survey sponsored by the Independent Insurance Agents & Brokers of America.

Of course that's the average, which means the cost could be higher depending on where you live.

Unless you can self-insure, meaning you have enough money saved to replace your clothes, jewelry, computer, DVD player and DVD movies, big-screen television, stereo equipment, microwave, video camera — you get the picture — you need renter's insurance.

Now, if you're thinking you're covered under your landlord's insurance policy, think again. You're not.

"One of the top reasons why people don't have renter's insurance is that they think because they don't own the unit the landlord will be responsible if they have a loss," said Robert Rusbuldt, CEO for the Independent Insurance Agents & Brokers of America.

"But if the building burns down it's your responsibility to replace your property," he said.

Your landlord's insurance covers only the building and the infrastructure of that building, such as the elevators, the air conditioning system, or the hallway, Rusbuldt said.

And what do you think might happen if the pizza delivery guy trips over your bicycle in your apartment and breaks his leg? He might sue you. But if you have renter's insurance, you will likely be protected (up to a limit) from personal liability.

If your roommate has insurance and you think you're covered, think again. Each person in the rental property typically needs his or her own policy.

Here's some good news for parents who have sent their children off to college: If a student is living in a campus dorm, his or her belongings may be covered under your homeowner's or renter's insurance policy.

But students living in off-campus housing need to double check to see if they are covered (typically they are not).

So how much renter's insurance coverage do you need?

This depends on how much stuff you have. You'll need to estimate the value of your personal possessions. If you've kept receipts, that's even better. The idea is to buy enough insurance to replace everything if it's stolen, damaged or destroyed.

Start looking for insurance by calling any insurance company you may already being doing business with or find an independent insurance agent by going to www.TrustedChoice.com.

Just so you know, the average cost to replace all the personal property in a two-bedroom apartment is about $25,000, according to State Farm.

Do you have $25,000 saved to replace your property if it's all lost in a fire?

If the answer is "no," then go get some insurance.