Many landlords are making renters insurance a requirement these days. The usual requirement is $100,000 liability coverage. By requiring you to have your own liability policy, more of the responsibilities are shifted away from the landlord lowering their risk and in some cases their insurance rates. For example if someone is injured in your apartment your personal renter’s policy may cover the incident as opposed to the landlords insurance.

The insurance requirement is for liability only. Since most renters insurance policies are package policies, renter’s insurance also includes contents coverage for your stuff and additional living expenses – which will cover you if your apartment is damaged due to a covered loss and you have to temporarily move to a new location. You can choose your own contents coverage amount. Most policies are going to have a minimum limit – usually around $15,000. Don’t automatically go with the basic coverage and make sure you are getting replacement cost coverage. The landlord is not responsible for your contents. While you may think you don’t have a lot of things, replacing your items can add up quickly. When trying to come up with a contents amount, keep in mind what the replacement cost will be. You may also need additional coverage for jewelry, collectibles and musical instruments. Renter’s insurance will also cover your items off premises such as items in a storage unit or theft of items from your car.

Renters insurance is relatively inexpensive. In many cases the cost is around $15 to $20 a month and if bundled with your car insurance can give a discount on both policies

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