Fire, thieves and hail, oh my!

Several years ago some jerks followed us home after we picked up a repaired fax machine and saw that we didn't carry it up to our apartment when we got home. (Not smart, I admit, but we lived on the third floor -- with no elevator -- and it was going to the office first thing the next morning.) The next morning our Volkswagen had a broken window and the fax machine was gone. Luckily, we had renters insurance that covered the loss, even though the fax was not actually in our apartment at the time it was stolen.

Anyone who rents a home or owns a condo needs renters insurance. It replaces the stuff you lose because of fire, theft, volcanic eruption or most other perils (except for flooding and earthquakes, which cost extra). Your possessions can be insured for their value or for what it would cost to replace them. If you have a 4-year-old television, actual cash value coverage will give you about what you could get for it in a garage sale. Replacement cost coverage will reimburse you for buying a new television just like the old one. It costs a little more but is usually worth it.

There are overall limits on what will be paid and special limits on specific categories of things, such as jewelry or antiques. If you have a computer, valuable collections or other out-of-the-ordinary costly items, you should get an endorsement to the policy to cover them.

The cost of renters insurance is based on where you live, how near you are to a fire station, the type of building that you live in and how valuable your stuff is. It usually runs about $300 each year to cover the contents of a two-bedroom apartment. You may be able to reduce the cost by using the same company that insures your car, or by installing safety devices like smoke detectors or security systems, or by raising your deductible.

According to the Insurance Information Institute, fewer than three out of 10 renters have renters insurance. People may think their landlord's insurance covers them, or that their belongings aren't that valuable. But the average person has about $20,000 in property and would be financially devastated by the cost of replacing all of his clothes and furniture, not to mention CDs, computer and television.

For an estimate of how much you would have to pay for renter's insurance, visit www.insweb.com or www.insurance.com.