- Renters insurance is recommended to cover your possessions, particularly for apartment dwellers. Unlike homes, apartments are usually not equipped with alarm systems, and burglary is more likely to occur. Your landlord's homeowners insurance will cover any damage made to the physical structure of the building but any property taken from you will not be covered. Renters insurance covers damage to your property from natural occurrences such as flooding and fire.
- Most commercial insurance companies offer renters insurance. It is more affordable than most types of insurance, and when coupled with other types of insurance such as automobile insurance, you can receive an additional discount. Renters insurance rates are primarily determined by the value of the items you wish to insure. Most insurance companies calculate rates based on value ranges in increments of thousand dollars (i.e., $10,000 to $20,000). You are not required to include everything that you own, although you can. Remember that you must be able to provide proof of value for more expensive items or be able to find proof of equitable value. It is recommended to choose the range that allows you some extra coverage with the anticipation of obtaining additional items. For instance, if you wish to obtain insurance for items valued at $30,000, and $30,000 is the maximum for one of the ranges you are considering, you probably should go with the next range up in order to accommodate possible expansion. Other factors are considered to determine the risk of something happening to the items you're insuring. For example, if the area you live in has high incidences of fire and the fire station is miles away, your policy may be slightly more expensive because there is a chance that you may sustain more severe fire damage. Crime and traffic incidences are examples of other factors that are examined.
- As your lifestyle changes, be sure to update your insurance. If you obtain new items, particularly those of high value, add them to your insurance policy. If you obtain or lose a roommate, their possessions should be added or removed from the policy. If you move, you should update your address.
