How To Secure Your Apartments Insurance

So, you have an apartment.  Getting it all set up was no small task.  Getting moved in, utilities situated, cable or satellite hooked up, internet connection configured, all the change of address stuff taken care of; it’s quite a list.  Now you can settle in.  Right?  Not just quite yet.  What about insurance?  Oh, your landlord has insurance, you say.  Yes, that’s true. And if anything happens to the building you are in that insurance is great. But what if something happens to your stuff?  The landlord’s insurance won’t cover your things.  That’s why you need insurance.

This insurance, sometimes called renter’s insurance, is referred to in the industry as either HO-4 (for renters) or HO-6 (for condo owners) insurance (just in case you run across this terminology).

There are several important matters to take into consideration when looking into renters insurance.  First, there are two types of coverage.  One is actual cash value coverage.  As this name suggests is provides for the actual cash value of your property at the time of damage or loss.  This is the less expensive type of coverage.  Here’s the thing, though, if you have a TV, for instance, that is 5 years old.  It is not worth now what it was when it was new (that’s depreciation).  Actual cash value coverage would only give you what the item was worth at the time of the claim.  But it is surely going to cost more than that to go out and buy another TV. 

This is where replacement value coverage comes in.  This insurance would provide enough to replace the damaged item, no matter what it was worth at the time of loss.  That means no extra out of pocket expense for you.  That also means, though, a higher monthly premium. 

Do you have any property that is particularly expensive?  Maybe a piece of jewelry, rare coins, artwork, computer equipment?  Don’t assume that the items will be fully covered.  These may exceed the dollar limit of coverage in a typical policy.  It may be necessary to get an additional policy rider in order to get adequate coverage.

Do you live in an area prone to earthquakes, floods, or hurricanes?  If so, you may need to get specific insurance to cover loss caused by these sources. They are not included in a standard insurance policy.

Suppose whatever it is that damaged your property also makes your place unlivable.  How will you pay for another place to live while yours is being repaired so you can move back in?  Your insurance should cover such a situation.