How to Insure Your Apartment Contents

If you’re renting an apartment instead of buying a house you may think that insurance coverage is superfluous. You couldn’t be more wrong. The owner of the apartment you’re renting must carry insurance, but except for very special circumstances that insurance probably won’t cover your belongings--that’s your responsibility. Following are a few tips on how to insure your apartment contents.

You May Have More Possessions than You Think

As a renter you need to realize that even if you don’t own a lot of nice things, what you do have is almost certainly worth more than you think it is--and would take quite a bit of money to replace. So going without insurance is not a good idea. Sit down with a pad and pen and take inventory of what you have in your apartment. Assign a replacement value to each item, and then add them up. The total is what it would cost to refurnish your apartment. Be sure to include clothes and electronic items, such as an iPod a camera, a TV set, an alarm clock, a stereo, a computer, or your cell phone.

Shop for a Carrier

Once you’ve determined how much your possessions are worth it’s time to shop for an insurance carrier. You can go online and get a quote from an insurance company that specializes in renters insurance, such as RentersInsurance.com. The nice thing about shopping for insurance online is that you once you fill out the online forms you will usually get a quote immediately, which you can use to compare to quotes from the more traditional brick and mortar insurance companies.

Discounts

If you already have an insurance policy on your health, life, or vehicle, be sure to talk to your agent while you’re shopping for renter’s insurance--you may be eligible for a multi-policy discount, which is called bundling within the industry. Ask the agent about other price breaks that may be applicable, and find out what the qualifications would be in order to receive the discount.

Discounts for Safety

Even though you don’t own the apartment you may be able to reduce your premiums for renters insurance by installing a few safety features. Deadbolt locks, smoke detectors, alarm systems, and storm-proof shutters are examples of safety-related items that will more than likely lower your insurance rates significantly. Be sure and check with your landlord before installing these items--it could impact your lease.

Group Rates

Many insurance carriers offer significant savings in the form of group rates to people who belong to specified organizations. Some businesses offer group rate policies to their employees, as well. Check with the personnel department at your place of work to find out if you’re eligible for a group rate policy. Ask your insurance agent which organizations enjoy the special rates. If you don’t belong to one of them you may want to consider joining in order to take advantage of the savings.

High Deductibles

One sure-fire way to get low rates on renters insurance is take out a high deductible policy. It is a standard practice within the insurance industry to offer lower rates to customers that carry high deductible policies. The higher the deductible you’re willing to carry, the lower your rates will be. Keep in mind that if you ever have to file a claim the deductible will have to be paid before the insurance company will send you a check for the remainder, so you should make every effort to keep some emergency cash on hand. A good way to do that is to open a savings account and deposit money into it on a regular basis. Of course, you’ll have to refrain from dipping into the account unless it’s an actual emergency. In some cases it may be worth your while to pay out-of-pocket for small things because filing multiple claims could make your rates go up.

Get a Replacement Value Policy

When you were determining the value of your possessions you should have figured out how much it would actually cost to replace them. Your insurance policy should reflect that amount--not what the property is deemed to be worth at the time if you have to file a claim--because if your possessions are stolen or lost in a fire you wouldn’t be able to purchase comparable items unless you have a replacement value policy.