If your apartment is struck by fire, a windstorm or even a crashed plane, your landlord’s insurance must pay for damage to the building. To pay damage to your possessions, however, you’ll need renter’s insurance. Renter’s insurance also provides liability coverage if a person is hurt in your apartment and holds you responsible.
Renter’s insurance pays if your own property–furniture, publications, PS3, clothes–is damaged by a list of”named perils,” MSN Money Central states. The list comprises fire, lava, electrical surge, bursting pipes, riot, lightning, vehicles, falling objects, smoke, vandalism and theft. It also provides liability protection that pays medical costs when somebody’s injured on your rented house or bitten by your dog, and court costs should they sue. In the event your home is temporarily unsuitable due to covered damage, many rental coverages will provide money to locate alternate living quarters.
The size of this policy depends on how much protection you want. If you’ve got next to nothing in your apartment, or it is all cheap hand-me-downs, you may be fine with only liability coverage or a little policy using a large deductible, the Money Alert site states. If you’ve got an expensive single item or a set –art, jewelry or household equipment, for example –you might have to take out additional protection.
Such as homeowner’s insurance, renter’s insurance comes from cash value and replacement value varieties. Money value pays what you spent on your own property, less depreciation: When someone smashes the television that you bought five years ago for $500, the insurance company will pay $500 after deducting for five years’ wear and tear. With replacement value, the insurance company pays what it’d cost to purchase a replacement TV.
If your apartment is in a flood zone, Money Central states, you may want to think about taking out a flood insurance policy. Floods are among the perils renters insurance.
Should you ever make a claim, it will help if it is possible to demonstrate the insurance company precisely what has been damaged or stolen, Nolo.com states. Keep records and sales receipts for purchases over $50; write down a list of everything you own; and capture the image of your property on video or photographs. Deposit this material in a safety deposit box or somewhere else off your house but readily available, so that you may reveal it to your insurance adjuster when you need to.