If a fire or tornado destroyed your home or a thief stole items, would you be able to replace your belongings? Landlords insure what they own, which is the building. Could you afford your losses? Does your lease have a clause requiring renter's insurance? Renter's insurance helps recover losses of clothing, furniture and other household items. A check is issued to pay for replacement. The policy could help pay for other housing until your home is repaired. It may give you liability protection if a visitor is injured.

How do you choose a policy? First, make a list of what you have, when you bought it, and what it cost. To determine a deductible amount, decide how much you could afford to pay - to replace lost items. Policies with larger deductibles cost less.

Next, get estimates from several agencies to compare policies. Talk to agents to find out what their policies would help you recover. It's important to know whether a policy covers replacement value or actual cash value of an item. Replacement value plans cost slightly more but also pay more if you need to buy an item new. Ask for discounts if you have car insurance with the same company, do not smoke, have a security system, sprinklers, or dead bolt locks.

Keep the policy with your lease and a list of belongings. Keep these and photos or video tapes of items in a safe place. Keep them away from home and update the list after making new purchases.

If you have questions, call the Minnesota Department of Commerce at 651-296-2488 or 1-800-657-3602. Or call the Insurance Federation of Minnesota at 1-800-642-6121.

MN Dept of Commerce
Insurance Federation of MN

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