As a renter, you probably believe you do not need renters insurance. After all, your landlord has building insurance. You are wrong. A landlord’s property insurance does not usually cover tenant’s personal property. If there is a fire, theft or broken water pipe your landlord’s insurance will pay to rebuild and remodel the property. However, your landlord’s insurance will not pay for the loss of your possessions.
You might believe you do not have enough possessions or your possessions would not be that expensive to replace. However, if you own any electronics, have clothes, furniture, musical or sporting equipment or jewelry, you should have renters insurance. I have had clients who escaped from their burning apartment building with little more than the clothes they are wearing.
The cost of renters insurance is largely based on the estimated value of your possessions. The easiest way to figure out this value is to make a list of all of your possessions, when you acquired them and how much you paid for them. Some items like computers, usually decrease in value, while other items, like jewelry, can increase in value. It is also a good idea to take photographs of all your possessions. Store your list and the photographs in a safe deposit box or somewhere not in your apartment building. That way your list and photographs will not burn in the event of a fire.
