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Renters Insurance

Many people renting apartments or condos often think "Why do I need insurance, after all I'm only renting?" Although your landlord or condo association has insurance on the building, it doesn’t protect your personal belongings. And the truth is the cost of renters insurance is very little when compared to the cost of losing irreplacable items.

While renting any kind of dwelling, it is always best that you have renters insurance. An ideal insurance company will provide the right coverage for all your possessions during your renting term. Your premium cost may vary depending on the area you live and whether the building is equipped with smoke and security systems.

In some places, your landlord may require you get renters insurance as part of your lease.

What Standard Renters Insurance Covers

A renters insurance policy will cover many unanticipated events which we normally don’t think about. Standard policies usually cover property losses from 17 perils including smoke, fire, windstorms, hail, lightning, ice, snow, explosions, riots, destructions, electrical surges and water damage.

If you experience any of these events, chances are your apartment may be rendered unlivable, forcing you to make other arrangments. Renters insurance policies will also have coverage of your displacement costs. The insurance company will pay for your stay elsewhere as you are searching for a new place.

Actual Cash Value vs. Replacement Cost

As your looking at the policies available, see if the insurance company will offer the "actual cash value" or "replacement cost coverage" for your belongings.

Actual Cash Value (ACV) coverage will pay only for what your item was worth at the time it was damaged or stolen, minus the deductible. Replacement Cost Coverage (RCC) will pay what it actually costs to replace the items you lost, again minus the deductible.

Most insurers will write ACV coverage. Others will quote you the RCC by default. Replacement cost coverage costs more in premiums, but it will also pay out more if you ever need to file a claim.

Taking Inventory of Your Items

To make sure you are compensated for any damagaed or lost items, you need to make an inventory of all your personal belongings. This will not only ensure you have enough coverage after a catastrophe, it will help you decide how much insurance you need and simplify claims.

Your inventory list should state the value and serial number of each item. Photograph or videotape each room including closets, drawers, storage lockers, etc. Keep receipts for major items in a fireproof box.

Consider Renters Insurance

There are many things that can happen to an apartment rental which can destroy your belongings. The truth is having renters insurance is an absolute must; it can help you recover from your losses and ensures peace of mind.

To find out more about renters insurance or to get an online quote, go to