Armchair Millionaire Community Bulletin: Apartment Dweller? Learn How to Protect Your Stuff

Renters insurance is often overlooked by apartment dwellers, but is actually one of the most important types of insurance you can get. Given that it's also one of the least expensive types of insurance available, you don't have any reason to not get proper coverage.

New York, NY (PRWEB) April 12, 2005 -- A 2003 poll by the Independent Insurance Agents & Brokers of America found that 64 percent of renters had no renter's insurance. This is despite the fact that, according to the National Association of Insurance Commissioners, the average renter's insurance premium in 2002 was just $186.

Renters tend to opt out buying rent for two reasons. First, many people mistakenly think that their landlords' insurance would cover any damage to their property. In fact, the landlords' insurance would cover their own property, but not their tenants' property. Second, many renters assume that they simply don't have enough valuable to make insurance worthwhile. But take a good look around your apartment. That home computer, TV, stereo, CD collection, furniture and kitchen items can all add up to a substantial sum, even if you live in a one-room apartment.

Just consider this story from the Armchair Millionaire community:

"Years ago, a roommate and I were renting an apartment together. We were both gone one weekend and our place got burglarized. They took our TVs, the stereo, both our computers and lots of little stuff. My roommate had renter's insurance and got reimbursed for everything he lost. I wish I could say the same thing about myself..." --TGS

If you're a renter, don't sell yourself short. Renter's insurance is just as important to you as homeowner's insurance is to those who own. Having the proper insurance coverage on your digs is one of the basic building blocks of financial security. My guide provides the basics you need to know.

The Armchair Millionaire's Guide to Renter's Insurance - Know what it covers. Most renter's policies cover three major types things:

•    Personal property losses that occur from a long list of perils, including fire, theft, windstorms, hail, the weight of ice or snow, damage from electrical surges and damage from burst pipes, to name but some.

•    Living expenses, should your place become uninhabitable due to any reason covered by your policy.

•    Liability protection, to cover expenses should anyone injure themselves at your apartment, including expenses for defending you against lawsuits brought by others.

Get enough coverage. To make sure you buy enough coverage, do a thorough inventory of your belongings. List each item and estimate what it would cost to replace. Don't overlook the small stuff--it all adds up.

Get the right type coverage. Policies insure your belongings either for actual cash value or replacement cost. Actual cash value is the current value of the item lost, while replacement value is what it would cost to replace the item with a new one. So unless you want to replace your stuff by shopping at garage sales, get a replacement cost policy. And if you have any expensive items such as jewelry or furs, check to make sure they're all covered. If not, you may need to obtain a rider to cover them.

Keep the cost affordable. Many insurance companies will give you a break on your premium if your apartment has protective devices such as fire extinguishers, smoke alarms and security alarms. A higher deductible will also mean a lower premium. You can often also get a discount if you buy both your renter's and auto insurance from the same company.

Go Dutch. If you have a roommate, it's generally better for each of you to have your own policy. Joint policies are available, but can make things complicated when one person moves out or if one of you makes a substantial claim.

The Bottom Line:

Renters insurance is often overlooked by apartment dwellers, but is actually one of the most important types of insurance you can get. Given that it's also one of the least expensive types of insurance available, you don't have any reason to not get proper coverage.

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Lewis Schiff founded the Armchair Millionaire Web site in 1997. His first book, The Armchair Millionaire, was published in 2001. Schiff's newest report, "How to Know When You Are Rich," is now available at www.armchairmillionaire.com.

Contact Information:

Lewis Schiff

Armchair Millionaire

877-833-2823

http://www.armchairmillionaire.com

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