When signing the lease your new apartment, you will find out that you need to get renters insurance.

Most people believe that they are already covered by their apartment complex, but that is only half true. Yes, the apartment has insurance, but it is for the building itself. It covers the floor, walls, the roof above your head and nothing more. So what if there is a fire and you lose all of your personal items? That is where renters insurance comes in.

Renters insurance is protection for your personal items in case of a fire, theft or damage. Some companies even cover stolen items, even if it wasn’t stolen from your apartment! Is it worth it? Totally!

Cost varies based on factors such as credit history, recent claims and property location/condition. The monthly average cost is about $15 a month. If you have special items of value, such as expensive art, jewelry or electronics, that you would also like covered you can add those for an additional cost.

Aside from your personal belongings, renters insurance also covers injuries and some accidents that may have not been your fault. If your neighbor from upstairs floods their unit and yours also gets affected, you will be covered.

Now that you know a bit more about what renters insurance is, its time for you to get it for yourself. There are many companies out there with different prices and coverage plans so do your research to insure you are getting the best deal. Be sure to keep an eye out for the type of policy offered. You will find that companies will either base claim off of replacement cost or actual cost value.

Replacement Cost– Pays the actual cost of the item. They usually take the lowest as-new market value.
Actual Cost Value– Value of the item minus depreciation.

Going with the replacement cost policy may be a bit more expensive, but you also will get more back for your valuables if something bad were to happen.