Allstate said that the rate cuts were sparked by favorable condo and renters insurance loss trends, and the company’s desire to pass that savings along to policyholders.

According to a study facilitated by Allstate two years ago, five million Californians rent their homes, and fewer than 40 percent of them have renters insurance. The study also showed that even though more than half of Californians estimated the value of their possessions at more than $10,000 and nearly a third give their possessions a value over $20,000.

Allstate representatives say that most renters assume that their belongings are covered by their landlord’s insurance on the property, when, actually, its the renter’s responsibility to cover their possessions, as the landlord’s insurance usually covers only the structure of the building.

Yumi Sam, a San Francisco-based Allstate agency owner says, “Allstate is committed to delivering the right products at the right price. Right now that means reducing renter’s insurance rates at a time when many California renters are leaving themselves uninsured.”

The heavy accumulation of snow in an area that rarely sees more than a few flurries caused widespread power outages, in addition to significant damage from falling trees and crashing roofs. As well, the area’s transportation system was paralyzed, and many schools and businesses were forced to close.

So far, there have been an estimated 4,200 claims filed from commercial and residential property owners, and motorists, with the average claim totaling about $6,000.

The snow began falling in the wee hours of last Thursday, February 11th, and didn’t completely taper off until almost 24 hours later. Power outages across the DFW metroplex left thousands of residents without heat or lights for several days.

Representatives of several homeowners and renters insurance companies are urging their customers to make physical inspections of their homes immediately, and call their insurers if anything seems amiss. “Inspections are free,” a State Farm ad reminds television viewers in the Dallas area.

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While it’s true that your landlord’s coverage is designed to replace the apartment building, the contents of your apartment – your clothes, your computer, any art, antiques or jewelry you own – those are all your responsibility, and that makes renters insurance not just “good,” but essential.

Just how essential is it? According to the Georgia Insurance Information Service, renters insurance is crucial for the following reasons:

• It protects you against losses due to: fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage from plumbing issues (but not from flooding, which requires flood insurance even for renters.)
• Covers you against liability (within your policy limits) is someone slips and falls inside your apartment, or is injured by one of your possessions.
• Insures your personal property against theft, when you’re away from home (for example, if your laptop is stolen from a hotel room.)
• Covers your bicycle, if it’s stolen while you’re out on a ride, but other vehicles are not typically covered.
• Is written not just for standard apartments, but also serves as the template for contents insurance for condos, co-ops and townhomes.

If you’re shopping for renters insurance, the best way to get a competitive rate is to be a savvy shopper. Here’s how:

1. Inventory Your Belongings: Before you ever commit to a policy, before you even start looking, catalog all of your possessions, including descriptions, serial numbers, estimated values, purchase dates, and receipts (if you have them). Taking pictures of everything, or shooting a video, isn’t a bad idea either. Not only will this help prospective insurance companies generate an accurate quote, but it will also serve as a useful tool later, if you ever have to make a claim. Make a copy of everything and store it outside your home, for backup.
2. Ask Questions: There are three key things you’ll want to ask about: theft limits (Ask for a list of standard coverages, compare it to your inventory, and then you’ll know if you need to purchase any personal property riders to extend your coverage), cash or replacement value (Coverage can be based on either cash value or replacement value, the first takes the age and condition of your possessions into account, the second bases value on the price of a similar item in today’s market. Replacement value policies tend to be more expensive.), and deductibles (the amount you pay up front if you make a claim. Generally, the lower the deductible, the higher your premium.)
3. Ask About Discounts: Just as with conventional homeowners insurance, you can save money on a renters policy by bundling your auto insurance with the same company, or by adding security systems, deadbolts, or smoke detectors to your apartment. You might even earn a discount for being a nonsmoker. Discounts vary from company to company – be sure to ask.
4. Comparison Shop: Always get quotes from more than one insurance company, and compare them closely before signing a contract. Sometimes one company may offer more coverage for less money, but offer less flexibility.

While these tips are excellent advice, don’t let the comparisons bog down making a decision. Renters insurance can’t help you, if you don’t actually have it.