by Becky Robbins

Created on: August 17, 2009   Last Updated: August 19, 2009

It might be surprising to realize a landlord's insurance policy will not cover your valuables against loss or destruction. When renting an apartment or home, it is important to carry renter's insurance. Should a catastrophe, like fire, theft, or vandalism occur, renter's insurance will protect your personal property.

When considering renter's insurance, you may say, well the landlord surely has insurance coverage, so I'm fine. The landlord's insurance generally will cover the building, but not your belongings.

You may also feel that you don't own very much or it isn't worth much. Your belongings are worth more than you think. On average, a person has over $20,000 worth of belongings. These would be unprotected without Renter's insurance. Most people do not have that amount set aside in an emergency fund.

So, before you write off the idea of renter's insurance, take a look around your home. If you are looking at an abundance of electronics, like computers, televisions, and stereo systems, you know the cash value of replacing those items is not cheap. Adding in furniture, clothes, and miscellaneous items like kitchen ware, increases those costs.

When you are preparing to shop for renter's insurance, it is a good idea to take inventory of what you own. Just because you don't own the home does not make your possessions any less valuable. A good way to be prepared is to create a written inventory of your items, when you purchased them, and their cost. You should also take a video tour through your home and record your valuables on tape. Written and visual inventories should be stored in a location other than your home, so if something did happen, you would have adequate information on your property. Creating an inventory of your personal belongings also helps you determine what level of coverage you will need.

Another way that renter's insurance helps protect your valuables is through its liability protection. Liability protection actually covers legal liability in case of damages for bodily injury or property damage. It can help pay for your defense against these types of claims or suits. The liability protection can also offer coverage for medical expenses up to the limit in the policy. By having this liability protection, it helps protect your valuables against loss. If something happened where you were involved in a claim or suit of this magnitude, your assets and savings that you have worked so hard for are protected.

All too often, you see in the news stories of people standing on the sidewalk of their apartment complex, watching their possessions go up in smoke. You may think it will never happen to you, but face it, things can happen. It is better to have the peace of mind, knowing that you will be able to replace your valuables should a catastrophe happen.

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