Insurance Every Renter Should Consider

When I signed my first lease, I thought my landlord's insurance covered me. It does not. The landlord's policy covers the building. It does not cover my things. Here is the insurance I now think about as a renter.

Renter's Insurance

This is the big one for renters. It is often low in cost. Some landlords even require it. Most policies include three main parts.

• Personal property. This helps pay to repair or replace your things if they are stolen or damaged by a covered event, like fire.

• Liability. This helps if someone gets hurt in your home, or if you accidentally damage someone else's property.

• Loss of use. This can help pay for a place to stay if your home becomes unlivable after a covered loss.

Ask about these points when you shop:

• Is it actual cash value or replacement cost? Replacement cost usually pays more for older items.

• What is the deductible?

• Are there limits on jewelry, art or electronics?

• Is flood covered? It usually is not, so ask.

Car Insurance

If you drive, your state likely requires car insurance. Check your coverage when you move. Your rate can change with your new address. Ask if you can save by bundling your car and renter's insurance with one company.

Health Insurance

Health insurance helps you pay for doctor visits, care and emergencies. You might get it through work, a family plan, the Marketplace or a public program. A medical bill can upset any budget. Having coverage gives you peace of mind as you start out on your own.

Umbrella Policies (Optional)

An umbrella policy adds extra liability coverage on top of your renter's and car insurance. It is optional. Many young renters do not need one right away. It may be worth asking about if you:

• Have savings or assets you want to protect

• Host guests often

• Have a dog

• Drive a lot

How I Shop for Coverage

• Get quotes from at least two or three companies.

• Read what is covered and what is not.

• Ask questions until it makes sense.

• Keep your policy numbers in one safe place.

• Review your coverage each year.

Where to Learn More

The National Association of Insurance Commissioners has helpful, plain guides for consumers. You can also find your state insurance department there. Visit the NAIC consumer page.

My Last Word

Insurance is not exciting. But it is part of being a grown-up who is ready for life. Start with renter's insurance. Check your car and health coverage. Think about an umbrella later. Then you can enjoy your new home with less worry.