Living in an Apartment: Protect Your Belongings
As someone living in an apartment you've undoubtedly accumulated many possessions, such as a TV, computer and furniture. Replacing these items could be expensive without personal property coverage if something unexpected, like a fire, tornado, or burglary, happens.
Renter's coverage is a lot like homeowners insurance, with the exception of the house. The amount of coverage purchased is based on the value of belongings, and it typically covers windstorms, fire and theft, as well as liability if someone gets hurt on the rented property and then sues you. For example, if someone visiting you trips on the stairs of the building, the landlord may be responsible. However, if someone trips on your bike on the landing, or on a rug in your apartment, you (as the renter) may be responsible. Liability coverage is designed to help with situations like that.
First-time renters may think personal property coverage just isn't in the budget, but one way to look at it is what would happen if there were a fire and just your electronic equipment was destroyed? The landlord's policy covers only the building, not the contents of your apartment. Here's what you should know:
Personal Property Coverage is Not Typically Expensive
costs depend upon location and the amount of coverage. Often discounts are available if your car insurance is through the same insurer. Use our home inventory to create a record of your possessions.
Consider Cash Value Versus Replacement Cost
Cash value reimburses for the value of belongings less depreciation. That could mean that a two-year-old computer doesn't really have much value at all after depreciation. Replacement cost covers the cost to buy a similar item at the current price. The difference in premium to buy replacement cost coverage may be less than 10 percent.
What About Living Expenses?
If a rented space is damaged enough that it's not livable, loss-of-use or additional-living coverage is a good thing to have. Some personal property policies include this or it may be an upgrade. Either way, it will pay living expenses for a temporary relocation.
Special or "scheduled" coverage is available for valuable items, such as jewelry, watches, musical instruments and furs. Coverage may cost as little as 1 percent of the item's value and it may be purchased with no deductible — that's something you'll want to discuss with your agent. Theft or mysterious disappearances are covered when there is proof of loss, such as a police report.
We can help you with Farm Bureau Member's Choice coverage for your personal property and your car.
