You and your landlord share a common goal: You both want to
ensure the protection of your interests. Obtaining a security
deposit from you -- usually ranging from $100 to a full month's
rent, and averaging $250 -- is how your landlord obtains a
degree of insurance from you. The deposit covers your landlord
should you cause any damage to your apartment while you are a
tenant. 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
good condition when you leave -- the deposit is refundable.
So how do you protect your own interests as a tenant? Renters'
insurance. If you're an apartment-dweller, you're probably
accustomed to brochures dangling from your door that advertise
various renters' insurance policies. And if you're like many
renters, you probably disregard them. But you may want to
consider taking out insurance. Before you say, "But I'm not
going to cause any damage to my apartment," remember that
renters don't always cause damage themselves. Mother nature, or
other tenants with little regard for your property, could prove
to be the source of your problems later.
According to Metropolitan Life Insurance Company, policies
typically provide coverage for the following renters' pitfalls:
* Damage to personal property from fire or wind * Theft *
Personal liability in the event you are 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
forced to live elsewhere while your apartment is being repaired
This list doesn't begin to elaborate on the multitude of other
possibilities for disaster: An electrical surge fries your
computer, television, and/or stereo; while visiting your
neighbor, you tip over his barbecue and start a fire; or you
accidentally cause injury to someone away from your apartment;
and the list goes on and on. And of course, as we've all
discovered, we can never discount such crazy-sounding
possibilities -- because they can and do happen if and only if
we're not prepared (or covered) for them.
Note that renters' insurance policies may differ according to
the insurance company in question, as well as the laws in your
state. An insurance representative will be able to determine
what type of policy best meets your needs. If you've thrown away
all of those brochures dangling from your door handle, the
Internet is a good place to do your homework -- specifically
apartment-search sites. Links to renters' insurance information
will fill you in on the details, and you may apply online.
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