Terri Kutrowski

What's your idea of financial security?

Terri Kutrowski
Kennewick, WA
Saturday, November 28, 2015

Renters Insurance - Get the Facts

You have just arrived home after a hard day at work.  As you attempt to unlock the door, you realize it’s not locked.  As you open the door and step inside, you’re filled with disbelief - your furniture, television, computer and stereo are all gone.  You have been robbed.  And you don’t have insurance.

57% of renters do not have renters insurance.* This may be due to a number of common misconceptions people have.

Common Misconceptions


My landlord’s insurance covers my belongings. 

The landlord’s policy covers the building, not its contents.

My roommate has a policy, so I do not need it. 

You are not automatically covered by your roommate’s policy.

I’m covered under my parents’ homeowners insurance. 

While many home policies cover dorm living, most do not cover apartment living.  Check with your financial representative to make sure you have the right coverage.

Renters insurance is expensive. 

For the price of one pizza a month you can have renters insurance.  The cost is minimal when compared to replacing all your items.

I live in a nice neighborhood.  I don’t have to worry about break-ins. 

While you may think your home is safe from theft or vandalism, you cannot predict the weather.  Most policies cover weather-related damage to your possessions caused by lightning, hail, ice or snow.  Also, damage due to fire, explosions and electrical or water discharge from appliances is usually covered.

What is Replacement Cost Coverage and Cash Value Coverage?

  • Replacement cost coverage pays what it would cost to replace each item in the current market. Replacement cost coverage is slightly more expensive than cash-value coverage, but it is usually worth it.  Technology items, such as computers, lose a percent value after just one or two years.  This means a computer you bought last year for $1200 may only be worth $720 this year.
  • Cash value coverage pays the actual value of each item at the time of the loss.  With cash value coverage, you would only get $720 for that computer. 

Added Protection

Renters insurance also covers possible liability.  Guests or visitors who hurt themselves at your home could sue for medical damages.  Without the proper plan in place, a lawsuit like this could put your financial security at risk.  But, most renters policies cover a situation like this. 

Before You Purchase

Here are a few steps everyone should take before purchasing renters insurance:

  1. Make an inventory (include brand name, model, serial number and value) and photograph or videotape all your belongings.
  2. Store these, along with receipts for major purchases, in a fireproof place away from your home. Update information each year with new purchases.
  3. Find out if you need to purchase additional coverage for expensive items, such as antiques, jewelry or major electronics.

We offer an option called Special Tenants that clients can add to their auto insurance policies.  The Multi-Policy Discount allows you to save money by insuring both your car and your possessions with us. 

As a COUNTRY Financial representative, I can work with you and discuss your unique situation.  Contact me to protect what you have. 

Learn more

For product and service information, read our full disclaimer.

*Insurance Research Council, 2006