The moment you move our of your parents house whether into an apartment at college or at anytime you are renting from someone else, you need to get a renter’s insurance policy.
What is a Renter’s Policy
A renter’s insurance policy will cover two major things:
Your Contents – Your “Stuff”
Your Liability Protection
Both of these coverage’s are equally important.
Your contents coverage is the coverage that will replace your personal property. This means your clothes, furniture, electronics, etc. All of this is considered your personal property.
Renter’s insurance policies will give you flexibility in choosing the contents coverage limit. With each insurance carrier having its own minimum coverage usually ranging from $20,000-$30,000 in coverage.
People tend to underestimate the amount of “stuff” they have and what it would cost to replace it.
One additional endorsement you want to make sure is part of this, is to make sure the Replacement Cost endorsement is included. This way if something happens you will get enough money to actually replace your contents and not just the depreciated value.
Make sure you are aware that a Deductible will be applied to this contents limit and that you know what that is before filing a claim.
Personal liability coverage will cover you in the event their is a claim and you are held liability for either the property damage or bodily injury to others.
An example of this, you as the tenant leaves the water running causing property damage in the apartment below you. Your liability coverage will protect you and pay for the damage you caused.
It is important to do what is best for you but one of those things is to make sure you are reviewing your insurance with an independent insurance agent.
To learn more and get a review of your insurance policies, click the button below.