Renter's insurance offers piece of mind Published June 30, 2008 By 52nd Fighter Wing Office of the Staff Judge Advocate SPANGDAHLEM AIR BASE, Germany -- U.S. firefighters responded to more than 1.6 million fires that resulted in over $11 billion in direct property loss during 1997, according to non-profit organization the National Fire Protection Association. That is $11 billion of fire damage that, without the benefit of insurance, would come directly out of the victim's pockets. Generally speaking, renter's insurance policies are designed to protect individuals from a number of potential hazards ranging from fire- and electrical surge- damage, to theft and vandalism. Most renter's insurance policies protect the actual structure of the building that the policy holder resides in and the holder's personal property. Property claimed does not necessarily have to be in the structure to be covered; however, it has to be shown the item claimed actually belongs to an individual covered under the insurance policy. For example, a notebook computer stolen from an automobile could be covered under the member's renter's insurance policy. That being said, Renters Insurance is not 100 percent failsafe. Most basic renter's insurance policies do not apply to flood and/or earthquake damage, so members in these areas are encouraged to maintain supplemental policies or riders on their existing policies. Renter's insurance also protects individuals by providing them reimbursement for items that are lost or damaged. This can be helpful for members living in base housing where they can be held financially accountable to the federal government for accidental damage to their home. The policy reimburses individuals for living expenses incurred while waiting for their damaged housing to be fixed. The amount reimbursable for living expenses is determined by an individual's policy, but is usually capped at 30-40 percent of the total value of the policy. In addition, renter's insurance provides a personal liability protection. This protects the policy holder from having to pay out of pocket for personal law suits up to the policy holder's cap. Renter's insurance policies are surprisingly affordable. The average yearly cost of a policy is $150-300 per $30,000-35,000 worth of household coverage and $100,000-300,000 worth personal liability coverage. When shopping for a policy know whether or not it offers "Actual Cash Value" or "Replacement Value" coverage. Actual Cash Value policies reimburse the policy holder for the depreciated value of the property at the time that it became lost or damage. Conversely, Replacement Value coverage reimburses the policy holder for the cost of a like value replacement. Although slightly more expensive, Replacement Value coverage puts the policy holder in a significantly better position than Actual Cash Value policies. All in all, renter's insurance is a relatively small expense that can pay huge dividends in a time of need.