Why should I get renters insurance and what should I look for in a policy?

Getting a good renters insurance policy is an important consideration when moving into any new apartment. Although landlords generally have their own insurance that covers the structure, you'll want to be sure that your belongings are covered in case of a disaster or other emergency.

What should you look for in a policy to be sure you are well protected? Here are some things to check out:

• Know what you are getting. Does the policy cover replacement cost or actual cash value? Replacement cost is a better way to go if possible; it covers the cost of the goods today. Actual cash value only covers what the product would be worth right now.
• Expensive items may require a rider. If you have an engagement ring that has a high cash value or an antique that is worth a good deal, make sure you tell your insurance company. Additional coverage may be needed.
• Make sure you know your deductible so you are aware of what costs you would have to come up with out of your own pocket.
• Get the coverage you need. If you live in an area that is prone to earthquakes, be sure that is something you are covered for. Read the policy and think it through carefully before signing on--you'll want to be sure that it prepares you for anything that may happen in your area.
• Look for a multi-policy discount. Some places will give you a break on insurance costs if you have both a renters and automobile insurance policy through their company. It can pay to ask.

Go Back