Apartment Renters Insurance
If you live in an apartment building, you should strongly consider purchasing apartment renters insurance. You cannot control the actions of your neighbors, and many things can go wrong. Think about how much value you have tied up in your belongings, and how much it would cost to replace everything. Apartment renters insurance is almost a necessity!
Most renters’ insurance policies cover all of your personal belongings that are inside your apartment up to a specified dollar amount. Many policies also cover your insured personal belongings if they are outside or away from your apartment for up to 10% of the value. Insurance companies may not insure certain items, and you will need to check with your insurance agent to ensure that the things you want covered will be included on the policy.
There is a difference in policies that insure your belongings for their actual cash value, and insurance policies that cover your items for replacement value. A policy that pays actual cash value will only pay you for what your items are worth on the day that the loss occurs. This means that if you paid $1000 for your computer system, and it is lost, then insurance company will only pay you what it is worth today – not what it was worth when you bought it.
On the other hand, replacement value insurance will pay you what it will cost to replace your items today, although there will be limits that the insurance company will pay. It is important to know these limits. Replacement value insurance is typically more expensive than cash value insurance, but the added protection is usually worth the added expense.
Before searching for apartment renters insurance, you need to go through your apartment, and make a list of all of your personal belongings. This list should include all furniture, appliances that you own, electronics, sports equipment, electronics, books, special collections, and anything else that you can think of. Don’t make the mistake of thinking that nothing bad is going to happen. Bad things happen all the time and you are better off planning ahead for those events.
