Basic Options
Most renter’s insurance policies provide two basic types of coverage: personal property and liability. Personal property coverage pays to repair or replace personal belongings if they are damaged, destroyed, or stolen. This is the most commonly purchased renter’s policy. Liability insurance provides coverage against a claim or lawsuit resulting from bodily injury or property damage to others caused by an accident while on the policyholder’s property. Unusually expensive items, such as fine jewelry or an art collection, may require the renter to purchase additional coverage, called a “rider” or “floater.” Your insurance agent can help you determine if additional coverage is necessary.

Shop for the Right Coverage
Another important factor to look for when shopping for renter's insurance is “actual cash value” versus “replacement cost” coverage. Actual cash-value coverage will reimburse the renter for the cost of the personal property at the time of the claim, minus the deductible. It’s important to account for depreciation when considering this coverage option. For example, if a stereo system were stolen from an apartment, five years after the stereo was purchased, the policyholder would be reimbursed for the current value of the system. Replacement cost coverage, on the other hand, will reimburse the full value of the new stereo system, after you purchase the new system and submit your receipts. While the up-front cost is greater, you are more likely to receive accurate compensation for your possessions.

Additional Points of Interest Regarding Renter's Insurance
When a claim is reported, the insurance company will ask the policyholder for proof of purchase for all items reported on the claim. A comprehensive list of possessions, including purchase prices, model numbers and serial numbers, will suffice. Also, it is a good idea to take photos or video footage of any personal possessions for documentation, making sure it is stored in a secure, off site location. When determining how much, if any, renter’s insurance you should purchase, estimate the value of your personal possessions. This is the amount of insurance you will need to replace the contents of your home if everything were destroyed. If a college student is living in an off-campus house or apartment with one or several roommates, they may be able to purchase a renter’s insurance policy together. Some policies automatically extend coverage to any resident of a policyholder’s household who fits the definition of a “domestic partner.” Otherwise, consider carrying separate coverage for each of the adult tenants. One of the smartest things you can do as a renter is reduce the chances of needing to file a claim altogether by requesting that the property owner install an anti-theft or safety device inside the rental property. In all cases, it is recommended to reference your current insurance policy or contact your agent when deciding whether or not to purchase renter’s insurance for a student away at college.