Colorado Real Estate

Four Things You Should Know about Renter's Insurance

Renting an apartment is a great way to save money, but you should be a responsible renter. One way to be a responsible renter is to purchase renter's insurance. Renter's insurance covers your belongings in case of theft, disaster or vandalism. Here are some things you should know about renter's insurance so you can make an informed decision when it is time to get a policy.

1. Renter's insurance is very affordable. In many cases, you can get a decent renter's insurance policy for only 20 or 30 dollars a month. If that is too much to spend, you can get lower rates by raising your deductible and asking your landlord to increase the security features around your rental unit.

2. Renter's insurance covers more than just theft. Even if you live in a good area with very low crime rates, renter's insurance will also cover you in case of water damage or some other disaster that affects your belongings. The best part is that some renter's insurance policies will even cover you in other circumstances, such as when you travel or in cases of personal liability. Discuss these possibilities with your insurance agent for more information.

3. Your stuff is more valuable than you think. Many people fail to get rental insurance because they don't think they have anything that is valuable enough to insure. But if you look around your home and start adding up the cost of your CDs, DVDs, electronics and other possessions, you will see that getting at least a basic renter's insurance policy is a good idea in case you ever need to replace what little you have.

4. Your landlord's insurance does not cover your stuff. A landlord is only required to have insurance on their home and its structure. Their policy typically does not cover the belongings of the tenants. You need your own renter's insurance policy to make sure your stuff is covered.