Renters insurance

Do it like this

1. Know the three parts. A standard renters policy has personal possessions coverage, liability coverage and additional living expenses. Source: Triple-I¹ Your landlord's policy covers the building but won't replace your things or pay your living costs while it's repaired.
2. Count what you own. Make a home inventory, room by room: furniture, clothes, electronics, kitchen stuff, even towels and bedding. That total is how much possessions coverage you need, and the list makes a claim faster. Source: Triple-I¹ Walk through with your phone recording video, and save it in the cloud.
3. Pick replacement cost over actual cash value. Actual cash value subtracts for age and wear, so a five-year-old laptop pays out what it's worth used. Replacement cost pays what a new one costs, up to your limit, and runs about 10% more. Source: Triple-I¹ With replacement cost, you're usually paid the full amount after you buy the replacement and send receipts. Source: NAIC³
4. Set liability at $100,000 or more. Liability pays your legal defense and any court award if you accidentally injure someone or damage their property, including damage caused by your pet. Limits generally start around $100,000, and some experts recommend $300,000. Source: Triple-I¹ If your lease requires a minimum, match it.
5. Choose a deductible you could pay tomorrow. The deductible is what you pay before insurance kicks in, every time you file a claim. Triple-I suggests at least $500, and says raising it to $1,000 may cut your premium by as much as 25%. Source: Triple-I¹ Only pick $1,000 if you actually have $1,000 saved.
6. Get at least three quotes. Prices vary from company to company. Compare quotes from insurers that use their own agents, independent agents and direct sellers. Ask about discounts for bundling with car insurance, smoke detectors, deadbolts or a security system. Source: Triple-I¹ Don't pick on price alone. Choose a company that answers your questions clearly.
7. Read the declarations page before you pay. It lists your coverage limits, deductible and the type of coverage. Make sure it says replacement cost if you paid for it, and that your address and move-in date are right.
8. Add coverage for what's excluded. Floods and earthquakes aren't covered. Flood coverage is available through the National Flood Insurance Program, and earthquake coverage is a separate policy or an add-on. Source: Triple-I¹ Jewelry and other valuables are generally covered only up to about $1,500 unless you add a floater. Source: Triple-I¹

Coverage checklist when you compare quotes

• Personal property limit: matches your inventory total.
• Replacement cost, not actual cash value.
• Liability: at least $100,000, or what your lease requires.
• Deductible: an amount you could pay out of savings today.
• Additional living expenses: included, and how long it lasts.
• Medical payments to others: usually $1,000 to $5,000, for guests hurt in your home regardless of fault.
• Off-premises coverage: what's covered away from home, and the limit.
• Valuables limits: jewelry, electronics or instruments over the limit need a floater.
• Flood or earthquake: needed where you live?

Typical numbers

From the National Association of Insurance Commissioners' data, as published by the Insurance Information Institute, and Triple-I's renters guide.

If you need to file a claim

• If it was a theft or vandalism, report it to the police and get a copy of the report and the officers' names. Source: Triple-I¹
• Call your insurer right away. Ask how long you have to file, whether you're covered, and whether the loss is bigger than your deductible. Source: Triple-I¹
• Photograph or video the damage. Don't throw away damaged items until the adjuster has seen them. Source: Triple-I¹
• Send a list of everything damaged or stolen, with your inventory, receipts and photos.
• If you have to live somewhere else while repairs happen, keep every receipt for hotels and meals. Source: Triple-I¹
• If the insurer treats you unfairly, go to the claims manager first, then your state insurance department. Source: Triple-INAIC¹⁴

If it doesn't work

• If you're a college student in a dorm and still part of your parents' household, their homeowners or renters policy may cover your things. If you live off campus, you'll probably need your own. Source: Triple-I¹ A common provision covers a dependent's belongings up to 10% of the parent's coverage, so check the limit. Source: NAIC³
• If a quote seems high, raise the deductible only as far as your savings allow, bundle with car insurance, and ask about smoke detector or deadbolt discounts. Source: Triple-I¹
• If you have questions about a policy or a company, your state insurance department can help. The NAIC lists every state's department. Source: NAIC⁴