Apartments - Renters Insurance

You come home to your apartment from a long day at work and find that your television, stereo and computer are missing. The chance of getting your stuff back is slim, so can you afford to replace it all? Or there is a fire in your apartment or your neighbor’s apartment. The apartment complex may repair the damages done, but can you afford to replace all your fire and smoke damaged belongings? Or in another bad case scenario, if someone is injured while in your apartment, you could be held liable in a lawsuit.

If your first reaction to all of that is, no, then chances are you need renter’s insurance to ensure that if any horrible or disastrous occurrence happens in your apartment, you will be okay. Similar to homeowner’s insurance, renter’s insurance covers a variety of situations including fire, hail, theft and electrical current damage. It also covers your liability if someone is injured in your apartment or by your pet.

There are a lot of people who don’t have renter’s insurance because they think it will be too expensive and unaffordable. While there are some apartment complex’s that require all residents to have it. The misconception is that it can be very affordable. You may not think you own much by looking around your apartment, but the cost of replacing all your belongings will be a lot more expensive than a monthly insurance premium. You can even lower your premium, usually, by having smoke and fire detectors and security systems. Another common misconception is that your belongings will be covered by the apartment complex’s insurance policy. Their insurance will only cover the building, not your personal belongings or liability. So don’t immediately disregard an apartment complex that will require you to have renter’s insurance. They’re only attempting to protect your life and belongings.

As with any insurance, you should first check around to find the most appropriate insurance for your lifestyle. Check with multiple insurance companies and you can even ask your friends and family if they have any suggestions. Be sure that you understand what the insurance covers. Floods and earthquakes generally aren’t covered. You have to purchase special insurance for both of these. This is probably a good idea if you live in area’s that are prone to these natural disasters. Also, when looking for coverage, see if the company will pay actual cash value (ACV) or replacement cost value (RCV). ACV will cover what your property was worth when it was damaged or stolen. RCV will cover what it costs to replace the property. However, for both instances you’ll first have to pay a deductible before your insurance company will pay for anything. RCV will probably have higher premiums, but will pay out more in the case that you have to file a claim. After you’ve selected the company you’re going to go with, contact a local agent to write a policy that will best fit you. Take an inventory of you belongings, pictures always help (and show proof of ownership if an unexpected accident were to occur).

Apartment living is fun because it has a social and community aspect to it. Unfortunately, criminals can flourish when there are a lot of people in one place, coming and going and when they don't know each other well. Be safe, keep your doors locked when you or roommate isn’t around. You can never be too safe. I’m sure everyone would rather come home to a clean, safe apartment each night and not have to worry every morning whether all their belongings will be there still when they get home. Living on your own for the first time is definitely an experience. If you just follow a few guidelines to getting everything set-up and moved in, it’s all down hill from there!