Since the cost is so cheap (as little as $12 per month in some areas) — and the protection so valuable — it's surprising to most industry analysts why more people with apartment rentals in the U.S. are not covered by renters insurance.
In fact, well over 50 percent of renters in America are not presently covered by insurance, which generally offers similar types of liability and protection afforded by homeowners insurance.
One main reason for the lack of protection, experts say, is the general mistaken
assumption that tenants are covered under their landlord's insurance policy - but that protection only extends to the building's common walkways and public areas.
You are responsible for loss of your own personal possessions from theft, floods or fires, and personally liable for injuries to friends or guests once they cross your apartment's threshold.
Much like condo/co-op insurance or homeowners insurance, apartment renters are covered against
fire and resulting smoke damage. Renters insurance also helps replace stolen possessions after theft or burglary. In addition, many policies include ALE, or Additional Living Expenses paid out while your apartment is being repaired or replaced. Renters insurance can also protect your assets should house guests hold you personally liable if they injure themselves while inside your apartment.
The cost of basic renters insurance policy generally ranges from $200 - $300 annually, depending on where you live. Premium amounts can rise if you opt for extra protection against loss of high ticket items such as expensive artwork or jewelry.
On the Web, find out more about renters insurance and how it works, what you're
likely to pay in your area, getting the right amount of protection, what's covered and what's not, and other questions to ask your insurer about renters insurance...
More facts & information about renters insurance around the Web:
Renters Insurance - Excellent fact sheet covering the topic with tips and advice on what policies typically cover, how to purchase insurance, questions to ask your insurer, related FAQ, links and glossary of terms.
The basics of renters insurance - Discussion on typical coverage, explanation of actual cash value vs. replacement
cost, tips on liability coverage, and ways to lower premium costs.