Why Should I Get Apartment Insurance?

By Author: Jerry Pickett
Total Articles: 4762
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You might have Aunt Martha's hand-me-down TV from the basement now, but next Christmas Uncle Mike might give you a 50-inch flat screen HDTV because he's so proud of you. You'll be glad you have renters insurance if the good TV is stolen. However, you will need to have the receipt to prove you owned it!

Apartment/contents insurance coverage protects the possessions you have right now and the possessions you will get in the future. It also covers you if your apartment or rental home is damaged and you need to temporarily relocate. Living expenses add up quickly, and insurance policies will pay those expenses for a short period of time until you can move back in.

In addition to covering your possessions in your apartment, rental insurance covers them in your car and when you are on vacation. This can be a lifesaver if your computer is stolen from your hotel room while you are on spring break.

Your landlord's insurance only covers his interests if the property is damaged in a fire or a tornado. You are out of luck unless you have contents insurance for your personal possessions.

How to Make an Insurance ...
... File

An insurance file is a record of your belongings and valuables. You will need this information if anything is damaged or stolen so that the insurance company will pay you to replace it. Make two copies of everything and keep one file with you and one file in another location such as your parent's home or in a bank safe deposit box. Your insurance agent may even be willing to keep a file at the insurance office. Just ask your agent if that is possible.

It is better to have a policy that pays you "replacement cost" rather than "actual cash value." The actual cash value payout will be far less than what it would cost you to replace a lost item. Get replacement cost insurance instead.

Here is how to make a good apartment/contents insurance file:

* Take a picture of anything valuable and keep it in a file along with the date of purchase and the receipt. Printouts of digital photos are just fine. Don't forget your mP3 player, your computer, your camera, and so on.
* If you inherit valuable antiques or personal items, include an appraisal sheet with your photo of the object. Appraisals are generally inexpensive and can be as simple as a written note from an antique dealer. It is especially important to document jewelry you may possess.
* Usually clothing and household items like sheets and dishes are covered by a limited lump sum payout in case of total loss. Unless you have an extremely valuable item of clothing, you do not need to document each thing.

What to Ask the Insurance Agent

It is always better to talk to an actual person when you obtain insurance coverage rather than getting renter policies online. An agent will answer questions you didn't even know you had!

When you go to the insurance agent to obtain a rental insurance policy, make sure you understand exactly what is and is not covered. Does the policy include damage from floods and earthquakes? Will the insurance company pay for damage caused by yourself or friends?

Ask about the limits. Limits are the most amount of money an insurance company will pay out on certain items. Many policies have general limits unless you document that you have something more valuable.

Ask about liability insurance. If someone is injured inside your apartment or rental home, liability coverage pays for their medical expenses and protects you if there is a lawsuit. Having this extra insurance costs a few dollars a month; it is just simply a good idea.

Keep your deductible low if you have little money saved. A high deductible renters insurance policy costs less per month, but you will also need to shell more money out-of-pocket if something is damaged or stolen.

Get all the discounts you can when you talk to your apartment insurance agent. This includes fire detectors, burglar alarms, and fire extinguishers. Your insurance agent will probably offer a multi-policy discount as well so if you have car insurance, get renters insurance with the same company.

It is pretty unlikely that a riot will ever damage your apartment or condo, but burst pipes in apartments are a common way your things might be damaged. Most renters insurance policies are incredibly cheap. Call an agent today and start gathering photos and receipts for your file.
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