Renter’s Insurance – What you should know.


If you rent a home, condo or apartment, consider purchasing Renter’s insurance.  Depending on your geographical location and the amount of insurance you choose, most policies run anywhere from $10-20 per month.

            In order to determine the amount of your insurance policy, you must first consider the value of everything you own.  Once you’ve assessed your belongings, find out whether your insurance company sets a limit on the amount of coverage they will provide, since insurance companies put a limit on the amount that they will cover in different areas. For example, your particular company may limit the total amount that they would pay in electronics to $500.00. If this is the case, then you would need to purchase an additional policy to cover items in your home that exceed that $500 limit. Likewise, if you work from home, consider the cost of the equipment required to do your job in order to determine whether you need an additional policy to cover job-related liability.

It is important to realize that only the items lost or stolen will be replaced by Renter’s insurance.  Therefore, if you are robbed, for example, you will likely only need to replace jewelry, electronics, and other typically stolen items. If, however, you are the victim of a fire, you will likely need to replace your clothing, your furniture and other personal effects including electronics.

At the same time, a Renter’s insurance policy does not cover everything. Most insurance policies will not cover a flood, so you should plan to purchase an additional policy to cover flooding if you live in a flood plain area. (Many apartments will let you know if they are located in a flood plain.)

Clearly, the benefits of purchasing Renter’s insurance far outweigh the minimal monthly cost in many ways.  In addition to fire and theft, Renter’s insurance:

1.    protects you from a number of devastating scenarios including fire, volcanic eruption, and smoke damage.

2.    covers items stolen as a result of burglary/theft

3.    provides individual liability. If someone gets hurts in your home, your insurance would cover costs, up to a certain amount, associated with the incident.

4.    may also cover scenarios in which you were responsible for damage to yours and other properties (through fire or water leaks, for example).

5.    may cover the costs of your temporary living if your apartment becomes unlivable.

6.    May cover your belongings, even if you move, as your policy is current.


Only purchase as much Renter’s insurance as you need it for newly acquired possessions.  For example, there is no need to purchase flood insurance if you do not live in a flood plain area.  However, should you move to such area, you can contact your bank or insurance company and add the additional flood policy.


IMPOARTNT: Shop around!  You can receive discounts when you purchase policies through your car insurance company. And check for discounts through your job, professional associations, and alumni associations.



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