Protect Yourself With Renter’s Insurance!

Like homeowner’s insurance, renter’s insurance protects your property against several types of losses like damage from a fire or theft. Renter’s insurance also covers injury or damage stemming from your negligence or that of your family members.

What does Renter’s Insurance cover?

  • Theft
  • Vandalism/malicious mischief
  • Medical expense if a guest in your home gets injured
  • Smoke damage
  • Falling objects
  • Weight of ice, snow, or sleet
  • Fire/lightning damage
  • Windstorm/hail damage
  • Damage caused by an aircraft/vehicle

Note: The insurance companies assess the replacement cost for your personal property. It is not what you paid, it is the resale value.

Types of Policies

There are several types of homeowner’s insurance policies sold in Wisconsin. They vary according to coverage in the policy and type of dwelling being insured. HOMEOWNER’S FORM 4 (HO4) is especially designated for renters. It covers your personal property for several different types of damage including theft, smoke, vandalism, fire, explosion, falling objects, building collapse, and rupture of steam or hot water systems. There is no coverage for the dwelling as that is the owner’s responsibility and should not be insured by the renter.

Additional Coverage

Other losses covered by a renter’s policy are:

  • A minimum of $25,000 in personal liability for each occurrence of bodily injury and property damage to others arising out of your negligence.
  • A minimum of $1,000 in medical payments without regard to fault for injuries occurring in your home to anyone other than you or your family.
  • Injuries occurring outside your home if caused by you, a member of your family living with you, or your pet.
  • 10% of the limits of your personal property coverage for your belongings if destroyed or damaged away from your home if the cause is covered by your policy.
  • Reasonable and necessary additional living expenses from residing in a temporary location because of damage caused by a covered loss.

What should I consider?

Your Property
  • What would is cost to replace the contents of your home?
  • Do you have inventory/photos of your personal possessions if they were stolen/destroyed?
You and your guests
  • What kind of protection do you have against liability?
Your coverage
  • What additional coverage is available for your items?
Your money
  • If your home becomes uninhabitable your insurance will cover “additional living expenses,” such as paying for you to live somewhere else until you can live in your property again.

Where do I start?

Each insurance agency’s requirements will be different. However, the following is a list of commonly asked questions. Having some of these things in your house or apartment can lead to monthly discounts off of your premium. Combine with auto insurance for even more.

  • Ex: Deadbolts, Burglar Alarm, Bars on windows, secured building/lobby, 24 hour cameras, fire/smoke/carbon monoxide detectors, fire extinguisher, sprinkler system, pets, etc.
How Much to Buy

The main factor to consider determining how much insurance to buy is the actual value of your belongings. This involves establishing “actual cash value” of all your possessions.

Actual cash value is usually determined by taking the replacement cost of the property when new and subtracting the amount of depreciation that has take place. For example, a piece of furniture that cost $500 to replace may have a reasonable “life” of 20 years. If this furniture is destroyed by a fire after 10 years, its actual cash value at the time of loss is calculated as $250. Replacement cost coverage on contents may be obtained for an additional premium.

Replacement cost coverage pays for your losses on the basis of how much it would cost to replace or repair the item at current costs without deduction for depreciation.

The easiest way to determine value is to make a complete inventory of your belongings and try to determine their value at the time of inventory. Reinventory and reevaluation of your belongings should be done annually.

Some property, such as art objects and antiques, do not lose value and should be scheduled separately on your policy. Other types of property are covered on a limited basis only because they are especially susceptible to loss. These include guns, cash, jewelry, and stamp and coin collections. All homeowner’s policies can be modified at additional cost to protect you against such losses. You may want to discuss these coverage and policy issues with your agent.


Cost of renter’s insurance varies depending on fire protection rating, type of building, location, and amount of insurance. As a renter, you will pay less for your insurance if you live in a fire-resistant building or a building with four or fewer apartments. This is primarily because the incidence of fires is lower in these types of buildings. If you live in a large apartment building, you could expect to pay somewhat more than a smaller apartment building.

The cost also varies among communities in accordance with their fire protection rating. As cost does vary, you should call several companies to find out exactly what coverage and price they offer. Generally, the higher the deductible, the lower the premium, but make sure you can afford the deductible.

Inventory Sheet

While renting you have probably collected more property than you think. A computer, mattress, clothing, etc. can add up. To ensure you are compensated for any belongings you lose, you should keep an inventory of your personal belonging(s). Typical coverage starts at $15,000. Keep track of the item, make/model, value/date purchased/serial number/ and photos.

Important Things to Remember

  • Shop around. Companies and agents differ not only in cost but also in claims service and coverage. Do not be afraid to ask questions.
  • If you do not have an agent, find out from a friend or relative the name of a company or agent with whom they have had a good experience.
  • Ask about discounts. If you already have an auto policy with one insurer, ask if the insurer would give you a discount on renter’s insurance.
  • Keep a list of all your personal property off premises so that if property is damaged or stolen, you will be able to account for it. Pictures or video of personal property may be helpful.
  • Check the theft provisions of your policy. This is a very common type of loss for apartment dwellers.
  • Report all theft claims to the police department promptly.
  • Keep a record of the serial numbers of your most valuable possessions.
  • Wisconsin insurance laws prohibit insurance companies from refusing, cancelling, or denying insurance coverage to a class of risk solely on the basis of past criminal record, physical, or developmental disability, mental disability, age, race, marital status, sex, sexual preference, “moral” character, location, or occupation.