You and your landlord share a common goal: You both want to make sure the protection of your interests. Getting a security deposit from you -- generally ranging from $100 to a full month's rent, and averaging $250 -- is how your landlord gets a level of insurance from you. The deposit covers your landlord should you cause any damage to your apartment whilst you are a renter. Your landlord, in turn, may keep the deposit if you fail to pay your rent or you leave before the end of your lease. However, if, as a tenant, you keep your end of the bargain -- following the terms of your lease and leaving your apartment in great condition when you leave -- the deposit is refundable.
So how do you protect your own interests as a tenant? Renters' insurance. If you are an apartment-dweller, you are probably accustomed to pamphlets dangling from your door that promote various renters' insurance policies. And if you are just like many renters, you probably disregard them.
But you may want to think about taking out insurance. Before you say, "But I'm not going to trigger any harm to my apartment," remember that renters don't usually cause damage themselves. Mother nature, or other tenants with little regard for your property, can be to be the source of your difficulties later on.
Based on Metropolitan Life Insurance Company, policies usually offer coverage for the following renters' pitfalls:
Damage to personal property from fire or wind
Theft
Personal liability in the event you're sued over accidental injury to others who are in your apartment
Accidental damage to property of others in your care
Living expenses if you are made to live somewhere else while your apartment is being fixed
This list does not begin to elaborate on the multitude of other possibilities for disaster: An electrical surge fries your pc, tv, and/or stereo; while visiting your neighbors, you tip over his barbecue and start a fire; or you unintentionally cause damage to somebody away from your apartment; and also the list continues. And of course, as most of us have discovered, we can never discount such crazy-sounding options -- because they can and do happen if and only if we're not prepared (or covered) for them.
Note that renters' insurance policies might differ based on the insurance company under consideration, as well as the laws and regulations in your state. An insurance rep will be able to establish what type of policy best fulfills your needs. If you have thrown away all of those brochures dangling from your door handle, the internet is a good place to perform your research -- specifically apartment-search sites. Links to renters' insurance information will fill you in on the particulars, and you might apply online.
