Renter’s insurance offers inexpensive protection

Nov. 4--Auto insurance protects a driver, passenger and vehicle in case of a crash.

Homeowner's insurance protects a structure, its contents and inhabitants in certain disasters, both natural and manmade.

But for those renting a room, apartment or house, a separate renter's insurance policy is needed to protect their belongings.

"When they rent an apartment or rent a house, the landlord has insurance for the structure," said Kathryn Johnson, agent at the John Seih Insurance Agency. "But he does not have insurance for the tenant's contents."

Renter's insurance policies are relatively affordable, with annual premiums ranging from $120 to $150 and can be bundled with an auto insurance policy for additional savings, Johnson said. They give a renter thousands of dollars of coverage in the case of a fire, natural disaster, water damage, theft or vandalism, depending on the policy.

Exact terms of policies vary, which is why it's important to discuss with an agent exactly what is and isn't covered.

"That way you can start over again, because you'll have some money to do it," Johnson said.

Even someone just out of college would still have thousands of dollars of items in a small apartment, she said.

"Think about clothes, think about women's clothes, you're constantly buying stuff," Johnson said. "You've got all the furniture, you've got food in your cupboards, you've got junk in your cupboards. It's just amazing how fast stuff adds up."

The fire that destroyed the Malchow's Furniture building and the apartments above shows just how quickly life can change. Several residents have GoFundMe pages set up, or have community support in the way of fundraisers.

In addition to helping replace items, renter's insurance can help cover hotel stays and other displacement costs, depending on the policy, she said.

Policies can also help cover a liability, Johnson said. So if an investigation proves that a tenant started a fire or caused a leak, their insurance could cover damages to other apartments or the structure.

"Renter's insurance is just like homeowners, only you're insuring the contents and the liability and not the structure," she said. "And if you don't have it, you're out, and you've lost everything you own."

Follow @kgrandstrandAAN on Twitter.

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