You have just signed a lease, and your son or daughter is moving into their first apartment. Or, you are moving off on your own and are renting your first home. Do you need insurance coverage? (YES!)

So what coverage do you need? We hear the term “Renter’s Insurance” thrown around, and that is a common phrase for a form of homeowner’s coverage, an HO-4. Basically, when you rent an apartment or house, this insurance provides coverage for your personal property, as well as some liability coverage. When you make the move, create an inventory of your belongings and figure a value for them. When you add it all up, that is the amount of coverage your policy should contain. Many policies have replacement cost coverage, so when you determine the value, consider what it would cost to replace each item with a similar one. Hypothetically, your used couch or tv may only be worth $300, but to replace them with a similar style, it may cost $1500 each. You will want to take that into account when determining how much coverage you want or need. Also, having an inventory is a good way in the event of a loss to show what items were damaged or lost.  A clean, quick way to make your inventory is to stand in the center of each room with your camera and shoot images of all four walls picking up photos and furniture in the shot.  At the time of loss, reviewing those same pictures will quickly prompt you on items acquired since the photo was taken and help to strengthen your inventory.

It’s also important to check your lease agreement, as some places may have minimum requirements for liability coverage. This coverage offers protection in the event someone is injured in your apartment.  Many times it demands additional coverage as well i.e. waterbed liability in case your water bed springs a leak and wipes out the tenant living below.

“Renter’s”  insurance is simple to acquire – it is usually priced depending on location of your residence, number of living units in the building, total value of all contents (don’t forget clothing, cosmetics and cooking utensils) and a deductible you’re willing to pay in the event a loss should occur.

“Renter’s” insurance is usually fairly inexpensive, and provides some much needed peace of mind that if something bad happens, you will be able to recover your items.

 

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.