Posted on: Thursday, September 25, 2003

Millions of renters go without insurance

By Sandra Block
USA Today

In the aftermath of Hurricane Isabel, homeowners across the East Coast spent the weekend searching for batteries, dry ice and their insurance agents. But millions of people have no one to call when their personal property is damaged by hurricanes, fires or other catastrophes. They're renters and, according to the insurance industry, they're living on the edge.

A recent survey by the Independent Insurance Agents & Brokers of America found that nearly two-thirds of renters don't have insurance. The survey also revealed widespread misconceptions about renters insurance.

Here's what you need to know:

• The landlord's insurance won't cover your property damage. Your landlord or building owner isn't liable for damage to your belongings, says Robert Rusbuldt, chief executive officer of the IIABA.

If your building burns to the ground, the building owner isn't responsible for replacing the charred contents of your apartment, Rusbuldt says.

Likewise, your landlord's insurance won't protect you from liability if a guest trips over your furniture and fractures his nose. While the landlord may be liable for injuries that occur in common areas, such as the lobby or stairs, once a guest is in your apartment, "that's your responsibility," Rusbuldt says.

• Your property is worth more than you think. Spend a few moments cataloging the items in your household. Now, imagine how much it would cost to replace your computer, television, DVD player and compact discs, along with your clothing and furniture. Many renters don't realize how much money they've spent on personal property over the years, says Rebecca Woan, an independent agent at Chartwell Insurance in Chicago.

And a good renters insurance policy will do more than replace your laptop computer. If a fire or natural disaster makes your building uninhabitable, it will cover the cost of temporary housing.

• Unlike homeowners insurance, which gets costlier all the time, renters insurance is affordable. The average premium is $12 a month for $30,000 in property coverage and $100,000 of liability insurance, according to the IIABA.

Unless you live in a building repeatedly cited for fire code violations, it's unlikely you'll be turned down for renters insurance, Rusbuldt says.