Renters Insurance

"Last night somebody broke into my apartment and replaced everything with exact duplicates... - Steven Wright (1955 - )

As a home owner I never considered NOT having home insurance. A house is too expensive to replace if lost to a fire. However as a college student I never once considered renters insurance.

The topic pops up now-a-days as one of the questions I must ask fire victims on the Red Cross forms. According to a pamphlet I picked up, renters insurance covers the cost of your belongings (not the apartment room) in case of fire, smoke, theft, storm damage, water/plumbing damage, etc. Your landlord's building insurance does NOT cover your personal stuff - for example my record collection that got warped and ruined when my basement apartment at college was flooded by heavy rain.

The pamphlet claims that rental insurance can be inexpensive, $12/month in many areas. But you'll need to check the policy to see what it covers and perhaps pay extra for some coverage like flood damage. Your car insurance company might give you a discount for buying another policy from them.

Also, keep in mind your need for liability insurance. Say your roommate's clumsy cousin trips on your sneakers, falls down the stairs and hurts his back. Like it or not, he could sue you for that. Whether or not he wins, fighting that suit could be an expensive nightmare.

Bottom Line
If you own an apartment you may be thinking - I don't have much, why insure it? But if you add up the cost of your big screen TV, your computer, your stereo system, clothes & shoes, cooking supplies and equipment, books, jewelry, CDs & DVDs, electronic toys, etc you may be surprised at how much it would cost to replace.

Here are the top links I googled for rental insurance:

Geico http://geico.com/getaquote/renters/

Liberty Mutual http://www.libertymutual.com/pmcampaign/landing_renters.html

State Farm http://www.statefarm.com/insurance/renters/renters.asp

Allstate http://www.allstate.com/renters-insurance.aspx