CHASE - CREDITCARDS

Consider Renter’s Insurance

After you have moved in to your new place, there is one more thing you ought to consider:  insurance. The owner takes care of insurance on the building, but you need coverage on your belongings. Get renter’s insurance as soon as you move into your apartment. (If you are in college, check with your parents first. Their insurance policy might cover your things, even when you are living away from home.)

What does renter’s insurance cover?

Renters insurance covers all of your property within your apartment, and depending on the policy, it could include belongings outside the apartment. For example, if your bike is stolen while you are at a friend's house. The coverage usually includes theft, fire, and water damage. Here are some key items to ask about when you call for a price quote:

• Replacement-cost policy—This type of coverage costs a little more, but it is worth considering. If your camera were stolen, a replacement-cost policy would pay for a new camera, similar in quality to the one you lost. Without this plan, you would be reimbursed for the depreciated value of the camera, which may not cover the cost of a new one.

• Expensive items—Computers, stereo equipment, or expensive jewelry may not be covered completely. You may want to insure those separately with a “rider” to your policy. 

• Personal liability—Most renter’s insurance covers all non-auto accidents. For instance, if you accidentally hit a pedestrian while riding your bike, she could sue you. But renter’s insurance may protect you.

What does renter’s insurance cost?

It costs less than it does to buy all new stuff! The National Association of Insurance Commissioners estimates that the average policy costs only $169 a year…much less than you are probably paying for car insurance.

What else should you do?

Take inventory of your possessions.  If you do get renter’s insurance, document your belongings. Make a list of everything of value, including serial numbers. Take pictures (or make a video) of everything you own that you would want replaced. Taking time to do this now will make settling claims with the insurance company much easier.

Keep those records in a safe place—like a fireproof safe box or email them to yourself using a Web-based email service. If you do have a fire, you will need these documents right away.

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