There is a misconception that only those who are buying their homes are eligible for personal property insurance. This is simply not true. Those who are renting apartments, condos, or other types of dwellings are eligible for renter’s insurance, and having this type of insurance is a very good idea for many people.
As you might imagine, renter’s insurance does not cover the actual structure of the building. The owner of the structure will have his or her own policy for that coverage. In some cases, they may also have some type of insurance that would cover your losses under certain events, but renters should not depend on that. It is far better to have your own coverage on your personal items. This way you know for sure that you are covered in the event something happens to the dwelling.
It should be noted that renter’s insurance does not cover injuries that should happen on the property. Again, the property owner should have that on his or her policy.
What it does cover, however, are those personal items that belong to you. This might include furniture, stereos, electronic equipment, desktop or laptop computers, clothing, artwork and other belongings. Should you lose your belongs by either fire, natural disaster, or theft you can get them replaced under your renter’s insurance policy.
As you might imagine, with so many people now owning things like computers and flat screen televisions, it does not take many items lost to add up to a significant amount of money that would be needed in order to replace these items. Renter’s insurance is very affordable and one of the best ways to decide if it is a good idea for you or not is to take a walk through your home and tally up the cost of your belongings if they were destroyed by fire or flood. You may be surprised at how much you actually own.
Insurance rates for your belongings will vary from company to company so it is a good idea to shop around for the best deals. On average, most people can purchase good quality renter’s insurance for about $200 per year.
Once you purchase a policy it is important that you keep an updated list of your personal items. This means adding to the list when you buy something new, and letting the insurance company know about it, as well as deleting items from the list should you no longer possess the item. Again, you need to keep the insurance company updated on that as well.
When you purchase something, keep your receipts. Receipts and other documentation such as credit card billings that state what an item is and how much it cost should not be kept on the premises. If those documents burn up or are otherwise destroyed you will have to track down copies and that can increase the length of time before settlement significantly.
Lastly, if you move to another dwelling, you want to make sure that you notify the insurer as soon as possible. In some cases, moving from a high crime area to a low crime can actually save you money on your premiums.
