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188 in 2015. One reason for the disparity is that mortgage lenders often require homeowners to carry insurance on a property they’re financing, while there is usually no such equivalency when leasing a property owned by someone else. But just because no one is making renters buy insurance, is that actually a reason not to,

Unfortunately, the value of insurance often eludes us until we need it. 1. How valuable are your belongings, There’s a good chance you would weep harder if an airline lost your suitcase containing all your favorite clothes than if something wrecked your thrift store sofa. But what about a fire that comes along and destroys your apartment, wiping out all of your belongings and leaving you with ash and rubble,

How much would it cost you to replace everything you lost, Most people think only of their big-ticket items like electronics and furniture. 30,000 worth of possessions, according to Allstate. When you add up the value of all of your stuff, you may find that you would not be financially able to replace everything at once.

Generally speaking, the older you are, the more possessions you’ve acquired. So take stock of what you have. And while you’re logging your inventory, take photos of the big-ticket items and consider using a home inventory app. Should a fire actually occur, having a digital record will ease the claim-filing process.

2. What exactly will a renters policy cover that isn’t covered by your landlord’s insurance, And don’t look to your landlord’s policy to cover your personal losses. The landlord’s insurance will probably cover replacing a window broken by a burglar, but it will not cover the laptop and TV the burglar stole. Your landlord’s insurance will cover the physical structure of the building ― say, if a tree falls on the roof.

A renter’s policy wouldn’t cover the roof repair, but it would cover any damage that the collapsed roof caused to your personal belongings. 3. What is an actual cash value policy, and is that the kind of insurance you need, An actual cash value policy means that insurance will cover the actual current value of your items.

1,500, but at whatever its value is today. And there’s a very good chance that amount won’t be enough to replace it new. However, you can ask for a replacement cost value insurance policy, which would cover the cost of repairing or replacing your belongings at as-new prices. If a leak from your neighbor’s broken pipe destroys your couch, insurance would allow you to buy a new couch, rather than just paying you the depreciated value of your current, damaged couch.

Because replacement cost value policies pay out more, they also cost more. 4. Will a renters policy cover everything, Not hardly. Your policy may have an overall ceiling on the total amount it will pay out per claim, and may also set limits on individual categories of loss. For example, there may be a cap on jewelry.

3,000. The way to get around these limits is to have a personal property endorsement for extra coverage on an item. And yes, that will cost more. Confusion may be the biggest problem with renters insurance. Between different exclusions and limits, it can be hard to figure out what’s covered. And who wants to pay money for something they don’t understand, Go over your contract with your insurance agent and ask questions.