When you rent a house or apartment from someone, you may be like many others who think the landlord has insurance on the house and doesn’t need any renters insurance. Your landlord has insurance, but only on the property they own. In the event you suffer a loss from fire or wind damage or some other peril, the landlord will be paid for the damage, but his household and personal property will not be covered. Almost all landlords have a section suggesting you purchase renters insurance in your lease, and some insist that you purchase a renters insurance policy if you live in their apartment or house.

Renters insurance combines two different types of insurance into one policy. One part is personal property insurance and the other part covers you if you or your guests cause damage to the building or personal injury to someone else. The policy will not pay for malicious or intentional damage such as kicking a hole in the wall, it will cover accidental damage that you or a family member would cause. For example, if your child played with matches and the building caught fire, he could be liable for damages. And even if your landlord is a friend or relative, your insurance company could sue you for money they paid you for damages you caused.

Request quotes for a renters insurance policy that covers ‘all risks’. These policies cover 17 risks such as fire, smoke, vandalism and wind damage. While this renters insurance doesn’t cover floods or earthquakes, you can purchase a separate policy or add a rider to your renters insurance policy to cover those perils.

When shopping for the right renters insurance policy, consider the cost of replacing your items. The only time most people notice how many “stuff” they have is when they move. It’s a really good idea to have your camera or camcorder handy when you pack or unpack, and take photos of all your items to make a permanent record. Write down the approximate cost of your items and then total it up. This gives you an approximate amount of insurance for your needs and gives you a picture to present to the insurance company if there is a loss.

Upload your photos or videos online to a private folder or email them if you use an online email service like Gmail or Yahoo. That way, they’ll be safely stored online even if a fire or tornado destroys your computer. When you buy your renters insurance policy, make sure you get replacement cost coverage. Most renters policies use the price of the item as the basis for reimbursement and then reduce the amount by a specific percentage based on the age of the item. This could mean that you would only receive $75 for your $500 stereo.

Research the possible need for scheduled personal property when purchasing renters insurance. Insurance companies have a cap on the amount they pay for specific items like jewelry or electronic equipment. If you have a particularly high-priced item, check the fine print to see if it costs more than the policy pays.

With scheduled personal ownership, you can increase the limits on an item group or simply schedule an item. You may have a jewelry collection that exceeds the company’s pay limit, but no particular extremely high-priced item. You can purchase more coverage for jewelry. The other type of clause covers a high-priced item, such as a diamond ring. It requires an appraisal and sometimes a picture to secure its value on a schedule.

Make sure the policy you buy offers enough liability if you start a big fire or if someone is injured in your home and sues you. Renters insurance is relatively inexpensive and the cost of increasing liability can be just pennies a month, but it could make a world of difference if there is a problem.

Compare policies for additional living expenses. While you may be able to secure another apartment right away, that’s often not the case, especially for a few weeks after a fire. Renters insurance has a section that covers additional living expenses. You pay a specific daily amount if you have to stay in a Holiday Inn or other hotel for a few nights until you find an apartment again. Sometimes the damage is small enough, you can move back in within a few weeks after the repairs are complete. No one but a week-to-week or day-to-day hotel would rent to you on those terms and the out-of-pocket cost is likely to be quite high. Check the price of hotel rooms in your area and compare it with the coverage offered by renters insurance.

If you’ve shopped for coverage and all is equal, compare the company’s financial strength and customer ratings. Your state Department of Insurance often has customer complaints on its website. It’s a good place to start. All things being equal, cheaper is always better. Insurance companies base their premium level on the losses they actually incur, the amount of money they make from their investment portfolio, and the overhead, expenses, and wages they pay for doing day-to-day business. Some companies have higher benefits for their executives and spend more on offices and services and therefore have a higher cost of doing business than others. You can find cheap contents insurance rates with the same coverages from some companies that do a better job of keeping your expenses down compared to their competitors.