Renter's Insurance Is a Must

Renter's insurance is essential to protect your personal possessions because the landlord's insurance does not cover your property. The good news is that coverage is relatively inexpensive. You probably want to first contact your automobile insurance agent to determine if a discount is available for using the same company to insure your apartment property. Also find out if your parents' homeowners insurance might cover your belongings. Before you make any definite decision about a policy, it is wise to have a discussion with a professional because rental insurance is complicated and you want to be sure you have adequate coverage.

Property damage can result in a wide variety of ways---fire, theft, water damage, vandalism, etc. When you start making a list of your belongings, such as stereo, TV, appliances, furniture, and clothes, the total value adds up quickly. You should document serial numbers of each item. A photo of belongings is also a good idea. Keep all this documentation in a safe location outside your apartment. Realize that you may need extra coverage for special equipment like cameras, computer equipment and guns. So address all of these with an agent. Keep in mind also that regular coverage does not include earthquakes and floods, so depending upon what region of the country you live in, these potential threats might need addressing.

A major decision you will have to make is how large the deductible will be on your policy. The decision is based upon how much you want to pay before the insurance kicks in; this up front payment by you will have a large impact upon the cost of the insurance premium. So it is a gamble of sorts. Also read carefully and be sure you understand the details of how and how much your renter's insurance pays for expenses resulting from your apartment becoming unusable. How much coverage do you have for personal liability claims and bodily injuries? What if a guest slips in your bathroom and falls? All these questions need addressing with your agent to insure that you fully understand your coverage. Ask lots of what-if questions before you sign your name to the policy.