Recently, a neighbor of mine returned home to his duplex to find it had been wrecked by fire, water and smoke damage, but luckily nobody was hurt. Sometimes it takes another person’s catastrophe to remind us that we are all pretty vulnerable.

Homeowners insurance covers not just the home, but also the valuable belongings inside. Many renters mistakenly believe that the landlord’s insurance will cover their losses in the case of a disaster. The landlord’s insurance will cover property, but not the renter’s possessions.

There are several different types of renters insurance and two types of payouts to the renter: actual cash value and replacement cost coverage. Actual cash value will pay for replacement costs, minus depreciation. Replacement cost coverage will pay for replacement cost without any depreciation. And, like your car insurance, you can pay monthly or a one-time annual payment.

For more information about renters insurance, visit MO’s Department of Insurance Financial Institution and Professional Registration website and review the Homeowners and Renters Insurance consumer guides.