Renters Insurance: Cheap, Easy, Indispensable

Q: I'm confused about renters insurance. Do I need it? I hear conflicting opinions. We had a fire in our complex (very small, confined to one unit) that was a bit of a wake-up call. How do I shop for renters insurance, how much is too much, and can you direct me to any other sources for information? -- Denver

A: Don't be confused about renters insurance. Just buy it.

A lot of renters assume that their landlords have insurance to protect them. That's not usually the case. A landlord's insurance does not cover a tenant's belongings.

Some renters also think that they cannot possibly own enough stuff worth insuring. It is only when all of your stuff disappears that you realize just how much all your furniture, clothes, books, jewelry, sports equipment, and computers and other electronics are worth.

I recommend getting insurance no matter what. If you do not agree, just take an inventory of your things and analyze what you would have to replace if you were a victim of vandalism, theft, fire, water damage, wind storm or explosion.

A typical policy also covers the loss of property when it occurs away from your apartment, such as a bike stolen from the top of your car.

The cost of renters insurance varies depending on the coverage and location. Generally, a basic policy will cover around $20,000 worth of your things and should not cost more than $200 per year. The rate is often less than that; in the Washington area, renters can get insurance for as little as $100 to $175 a year.

Shop for renters insurance as you would car insurance. Call around or search online for quotes and compare rates. Most of the larger insurance companies -- Allstate, State Farm, Geico -- give instant quotes on the Internet, with worksheets to help you figure out how much your stuff is worth. Online, http://www.netquote.com compares the different options based on your Zip code and says it will pick the best choice for you.

Of course, if you want to talk to someone about your choices, you can call these companies, an independent insurance agent or even your state's insurance office.

When I moved into the house I am renting, the floors had just been refinished. I did not realize that my bed and sofas would scratch the new finish. I guess I should have put something under them. The area near the sofas is the worst, with a number of foot-long scratches. What should I expect when I move out? Can the landlord charge me or is it "normal wear and tear?" Should I try to refinish the area myself? -- Washington

Like stains or burns on carpets, scratches on wooden floors are considered beyond "normal wear and tear." Normal wear and tear are those things caused by living in the same place over time, such as worn carpet, shabby paint or a duller floor finish.

Tenants are responsible for damage that is created by accidents or "abnormal" wear and tear. So your security deposit will be docked the cost of repairing the scratches unless you refinish the area yourself. If you are considering repairing the damage, make sure you know what you're doing so you don't make the problem worse.