If you’re renting, are you properly insured?

The
rate of home foreclosures across the country has turned a lot of homeowners
into renters. In the trauma of the foreclosure process, these former owners who
are now tenants may overlook something very important: the need to insure their
belongings.

When
you own a home with a mortgage, the lender usually requires you to have
property insurance. Homeowner’s insurance policies typically include coverage
for the contents as well as the structure itself. That coverage may or may not
be sufficient, depending on what sort of furnishings and personal property you
own, but at least it’s a degree of coverage. When you rent, however, the
contents of your home or apartment are not covered by the property owner’s
insurance; to protect your personal property in the event of theft or damage by
a covered hazard, you must buy a renter’s or tenant’s policy.

If
you’ve lost your home to foreclosure, you may think you can’t afford the
additional expense of renter’s insurance. Consider what it would cost you to replace
your furniture, clothes, jewelry, and other belongings—and call an insurance
agent for a quote.

If you're a landlord, be sure to clearly point out to tenants that they are responsible for insuring their personal property.