Although it is often overlooked, renter’s insurance is important. It is a resource for protecting one’s property and peace of mind.

Here are some FAQs:

Doesn't my [no-lexicon]landlord[/no-lexicon] already have insurance?

Your landlord might have homeowner’s insurance on your property. But coverage is mostly for the physical structure like the house. It may cover instances such as a leaky roof or a burst pipe. But it will probably not cover damages or loss of your personal property.

What is personal property?

This includes anything that isn't part of the structure of the house. For example, furniture, electronics, clothing, and appliances.

How much would renter's insurance cost?

The cost of the insurance changes based on the following things:

• The types of things that are covered by the policy,
• Whose personal property is covered. It could be your own, your household or your roommate(s),
• If the policy includes insurance for when someone is injured on the property and sues. This is "liability insurance", and
• The items the policy covers. This includes how the insurance company determines the value.

What would the renter's insurance cover?

When you first sign up, the company might ask that you create an inventory. This inventory will be of personal property to be covered. The insurance company may want proof of ownership of the items. Insurance may want photos of electronic devices or jewelry. You should include as much detail as you can. For example, the age and condition of the item, the purchase price, and the estimated cash value. If possible, include receipts, invoices, appraisals, and other documents. This will help establish the value of the item.

Policies may cover the actual cash value or the cost of replacement. Perhaps you purchased and insured a $500 television in January. Later on, in December of that year, the tv was destroyed during an earthquake. Depending on your policy, the insurance company may pay out the $500.  This is the actual cash value when it was first purchased and insured. Or the policy may cover the depreciated value of the television at the time of loss. Or it could cover the cost of replacing the same type and model. It might cover a television of similar value.

Decrease of value may make it seem renter’s insurance is a waste of money. But, renter’s insurance can be a significant investment. Especially when the policy covers items that appreciate. This means they increase in value. Suppose you purchased and insured an antique rug appraised for $500 in January. In December of that year, the carpet was damaged by a leaky roof. Unlike the television, the value of antiques and other one-of-a-kind items are trickier to assess. They are harder to replace. The insurance company may pay out the $500 appraised value of the rug when it was first insured. Or the appreciated value of the antique.

How do I get renter's insurance?

Consult the Illinois Insurance Association.