RENTERS' INSURANCE
* The average cost of renter's insurance is $12 per month for about $30,000 of property coverage and $100,000 of liability coverage.
Reasons to buy Renter's Insurance Unless you can self-insure, meaning you have enough money saved to replace your clothes, jewelry, computer, DVD player and DVD movies, stereo equipment, microwave, video camera -- you need renter's insurance.
"One of the top reasons why people don't have renter's insurance is that they think because they don't own the unit the landlord will be responsible if they have a loss," "But if the building burns down, it's your responsibility to replace your property. If the building burns down and it's your landlord's fault, he's not responsible for one dime of the contents you own in your apartment."
Your landlord's insurance covers only the building and the infrastructure of that building, such as the elevators, the air conditioning system or the hallway.
If your roommate has insurance and you think you're covered, think again. Each person in the rental property typically needs his or her own policy. Although you may be able to get a joint renter's insurance policy, it's probably best to have separate coverage in case your roommate moves out.
When purchasing a renter's policy, you'll need to decide what kind of coverage you want -- actual cash value or replacement cost. Actual cash value is less expensive of the two. Under this type of coverage your belongings are replaced after depreciation. This means the insurance company will take into consideration the age and condition of the stolen or damaged property. A replacement cost policy will pay you to replace your property with the same or similar item at the current market price. Just know that premiums are usually higher for replacement cost policies.
Start looking for insurance by calling any insurance company you may already be doing business with. Just so you know, the average cost to replace all the personal property in a two-bedroom apartment is about $25,000, according to State Farm. Do you even have enough saved to replace the $4,200 in electronic equipment the average person has?
If the answer is "no," then go get some renter's insurance . |
