HERE

TODAY.

GONE

TOMORROW

WHO NEEDS RENTERS INSURANCE?



YOU DO if you rent and have stereos, cameras,  

computers, clothing, jewelry, bicycles,

televisions or other valuables you can't afford to

replace if stolen, damaged or destroyed. A renters

policy can protect your investments - but you

must be able to choose a policy wisely to be sure

that all your possessions are covered, and that you

don't purchase too much coverage. This brochure

can help you make a decision about whether or not

you might need renters insurance.



IF YOU RENT...Your landlord's insurance does NOT 

cover your personal property or your clothes,

stereo, furniture, television, bicycle, jewelry,

personal computer, artwork and other items against

destruction or loss. Renters insurance, however,

gives you both property and liability coverage.



Renters insurance will protect you against losses

due to  fire or smoke, lightning, vandalism,

theft, explosion, windstorm, and water damage

from plumbing.



Renters insurance will also cover you if someone

slips and falls in you home or is injured by any of

your possessions and then sues. The insurance

should cover your responsibility to other people

injured at your home or elsewhere, and includes

legal defense costs if you are taken to court.



COMMON QUESTIONS



Q. Does renters insurance cover all my possessions?

A. It depends. Some possessions - jewelry,

computers - are often subject to a per-category theft 

limit (for example, some policies have a $5,000 limit for

computers). When seeking information on renters

policies, ask about the various category limits and how

they apply to expensive items you own. You may

purchase a floater, providing additional coverage for

specific items not included in your basic policy.



Q. If I file a claim, will my policy be canceled?

A. Your rates could change. If you are not responsible for

the loss or damage to your items, your insurance should

not be affected. If you were at fault (caused a fire by

smoking in bed), the insurance company might consider that when

setting the price for your next policy.  Your company might

consider the number of losses, regardless of fault, also.



Q. Is my property covered away from home?

A. Yes, but coverage may be limited. Restrictions in terms

and the amount of coverage might apply (from 10 percent of

your personal property coverage to full value). Ask your

agent for details. Your liability coverage does not change.



Q. As a student, am I covered by my parents' policy?

A. If you are attending college, are under 26 and your parents

have a homeowner or renters insurance policy, their 

insurance may give you LIMITED coverage in the dorm, but

not if you live in an apartment.



Q. Can I purchase a renters policy with my roommates?

A. If you live in a group house or share an apartment and

want to purchase renters insurance, be aware that the 

regulations vary state to state, and policies vary

significantly from company to company. Find out what

regulations apply in your state. Then, shop around to find

an insurance company that can accommodate your 

situation. Also, find out whether your policy needs to be

updated if you get a new roommate or if all your

roommates need to be named under the policy.



Q. What about unmarried couples?

A. Some insurance companies now allow unmarried

couples who have been living together to obtain coverage.

Some policies automatically extend coverage to any future

resident of a policyholder's household who fits the

definition of domestic partner.



Q. What happens if my rented or borrowed items are stolen?

A. Items that are "in your possession" are covered under a standard

renters policy.



Q. What if my insurance company does not respond to a claim?

A. Your state insurance department or local consumer protection

office can answer questions on filing claims and also take

complaints. (See back of this brochure for insurance department

telephone numbers.)



Q. Is my bicycle or car covered by renters insurance?

A. Your bike is protected by a standard renters insurance policy.

Motor vehicles are not covered. A separate insurance policy is

needed to protect your car, van or motorcycle.





HOW DO YOU BUY RENTERS INSURANCE?



1 TAKE AN INVENTORY. Before purchasing, make an

itemized list of everything you own with price estimates

and purchase dates (if possible). Your inventory will help

ensure that you purchase the right amount of insurance - not

too much or too little. Also, an inventory will help make filing a 

claim easier. Make copies of this inventory and keep it in a safe

place outside of your home (at work, in a safe-deposit box or

friend's house). Take photographs of each item; this can be

helpful when filing a claim.



2 ASK ABOUT: 

A. THEFT LIMITS. For example, most 

renters policies have a $1,000 total limit on jewelry that is

stolen, a $3,000 - $10,000 limit for computers and $2,500 - $10,000

for silverware or flatware.  Policies vary - so ask.  Ask for a

list of standard coverage limits so you know whether you'll

need to buy a floater, which provides additional coverage for

some of your items.

B. CASH OR REPLACEMENT VALUE. Your policy can insure

possessions one of two ways - for either the cash or the

replacement value. Cash value coverage takes into account the

age and condition of items at the time of damage or loss.

Replacement value pays today's cost of a new item. For

instance, if your five-year-old TV is stolen, a cash value policy

will pay part of the original purchase price while a replacement

policy will pay the current price of a comparable set.

Replacement value policies tend to cost more, and there may be

other requirements as well.

C. DEDUCTIBLE OPTIONS. Find out about the deductible - your

out-of-pocket cost. The lower the deductible, the ore the 

policy will cost you.



3 SEEK DISCOUNTS. Insurance companies frequently offer

discounts to their auto policyholders interested in buying a 

renters policy from them. You also may be eligible for

discounts if your apartment or home has a security system, smoke

detectors, or deadbolt locks. Additional discounts may be

available depending on your age or whether you are a non-smoker.

Policies vary. Examine as many options as possible.



4 SHOP AROUND. Find an insurance agent or insurance

company representative with whom you are comfortable.

Ask friends or relatives or consult the yellow pages. Call

a variety of insurance companies and agents. Ask questions.

Keep your inventory handy, so you can find the amount of

coverage that is most appropriate for you ($16,000 is usually

the smallest amount of coverage you can get).



5 READ YOUR POLICY. An insurance policy is a contract

between you and your insurance company.  Read the

policy carefully - if you have questions or if something

is unclear, call your insurance company representative. Don't

sign the contract unless you fully understand the company's

responsibilities as well as your own. An insurance policy spells

out several obligations for both you and the company. For example,

the company has a duty to defend the insured renter in court if the

renter is sued. On the other hand, you must give the insurer

complete, accurate and timely information.



GLOSSARY OF INSURANCE TERMS: 



ACTUAL CASH VALUE: Cost to            $100, you pay $100 and your.....

repair or replace property, taking    company will pay $400.

into consideration age and its     

condition when it was lost or         Depreciation: Reduction in the

damaged. (Equal to replacement        value of property due to age

cost minus depreciation.)             and use.



AGENT: An insurance                   DOMESTIC PARTNERS: A term

salesperson. (a) An independent       used in some states, such as

agent does not work for any           California, to describe an

insurance company and sells the       unmarried couple living       

more than one                         together.

insurer; (b) An exclusive agent

sells the policies of only one        ENDORSEMENT: Attached to

insurance company.                    policy which adds to or changes

                                      the contract's original terms.



CLAIM: A person's request for         FLOATER: Additional coverage

payment by an insurer for a loss      for items not otherwise

covered by a policy. Your claims      included in the basic policy  

to your company are "first-party      (such as jewelry or antiques).

claims." Claims made by one    

person against another person's       INSURANCE DEPARTMENT:

company are known as "third-          Enforces rules for the insurance

party claims."                        business in each state. Valuable

                                      source of information about all

CONDITIONS: Part of an                types of insurance; also handles

insurance policy which states         consumer inquiries and        

your obligations and those of         complaints.

your insurance company in order

for the policy to be in effect.       INSURANCE COMPANY: A 

                                      company, which in exchange for

DEDUCTIBLE: The amount which          a fee (known as a premium),

you agree to pay, out of pocket       agrees to pay all legitimate

per claim or per accident. This is    claims that may arise under you

subtracted from the total amount     policy.

paid by your insurer. If the claim    

is $500 and your deductible is











INVENTORY: A list of your   

possessions and their value.

Items on the inventory should

include furniture, rugs, drapes,

artwork, china, appliances,                                         

books, clothes, jewelry, compact

discs, records, tapes, linens, and musical instruments.



LIABILITY: A legally enforceable

financial obligation.



LIABILITY COVERAGE: Insurance

which pays the losses of other

people to whom you

unintentionally or through

negligence cause injury.

(a) Bodily injury liability

coverage pays medical costs of

others and your legal defense

costs if you injure of kill

someone; (b) Property damage

liability coverage pays claims

against you if you damage

someone else's property.



NEGLIGENCE: Failure to exercises

a generally acceptable level of

care and caution.



PERIL: Cause of loss. (Examples:

fire, theft.)



PERSONAL PROPERTY

INSURANCE: Protects against the

loss of, or damage to,

possessions caused by specific

perils.



POLICY PERIOD: The amount of

time an insurance contract

(policy) lasts.



PREMIUM: The amount you pay

for insurance coverage.



POLICYHOLDER: The person who

buys insurance.



PROOF OF LOSS: Documents

that you give to the insurer

to support your request for

payment of a claim. The

company uses these documents

to determine whether and how

much it will pay. (Examples:

written repair estimates, police

reports.)



REPLACEMENT COSTS: Cost to

replace property without regard

to age or condition of the original item.



THEFT LIMIT: The highest

amount an insurance company

will pay on certain items that are stolen from your home. For

instance, some policies have a

$5,000 limit for computers. If an item would cost more than the

limit to replace, you may need to purchase supplementary coverage.





HOW DO YOU FILE A CLAIM?



As soon as you become aware of a loss, write down

everything - the date, time of day, list of goods stolen or

damaged. Call the police as soon as possible. Then, contact

your insurance company or agent to report the loss and get

the appropriate claims form. Written and documented

reports of losses are especially important when theft is

involved. Include everything and carefully assess damages:

amended claims could take longer to pay.



This brochure is a joint project of:



NCL     NATIONAL       815 15th STREET, NW

        CONSUMERS      WASHINGTON, DC  20005

        LEAGUE         202-639-8140



III     INSURANCE       110 WILLIAM STREET

        INFORMATION     NEW YORK, NY  10038

        INSTITUTE       212-669-9200







NICH   NATIONAL INSURANCE CONSUMER HELPLINE

       1-800-942-4242



PHONE NUMBERS FOR STATE INSURANCE DEPARTMENTS:



AL: 334-269-3550   KY: 502-564-6027   OH: 614-644-2658

AK: 907-465-2515   LA: 504-342-5423   OK: 405-521-2686

AZ: 602-912-8400   MA: 617-521-7794   OR: 503-378-4271

AR: 501-686-2900   MD: 410-333-2521   PA: 717-783-0442

CA: 916-445-5544   ME: 207-624-8475   PR: 809-722-8686

CO: 303-894-7499   MI: 517-373-9273   RI: 401-277-2223

CT: 203-297-3802   MN: 612-296-6848   SC: 803-737-6160

DE: 302-739-4251   MS: 601-359-3569   SD: 605-773-3563

DC: 202-727-8000   MO: 314-751-4126   TN: 615-741-2241

FL: 904-922-3101   MT: 406-444-2040   TX: 512-463-6464

GA: 404-656-2056   NE: 402-471-2201   UT: 801-538-3800

GU: 671-477-5106   NV: 702-687-4270   VT: 802-828-3301

HI: 800-586-2790   NH: 603-271-2261   VI: 809-774-2991

IA: 515-281-5705   NJ: 609-292-5363   VA: 804-371-9694

ID: 208-334-4250   NM: 505-827-4601   WA: 360-753-7301

IL: 217-782-4515   NY: 212-602-0429   WV: 304-558-3354

IN: 317-232-2385   NC: 919-733-7349   WI: 608-266-0102

KS: 913-296-7801   ND: 701-328-2440   WY: 307-777-7401