Thanks for the input, everyone!
I called about a policy and got hooked up with $30K of coverage (on a one-bedroom apartment) for about $120/yr., and I added a second personal property rider to specifically cover my music equipment (itemized w/ serial numbers and so on) for a few more bucks.
I feel good now!
Hell, yes it’s worth having! My fiance’s apartment was destroyed by fire a few months ago while he was on vacation. We don’t know how much they’ll wind up paying him to replace the stuff that was destroyed. I do know that they paid the first three month’s rent on a new apartment and supplied loaner furniture, including a television, plates, and cutlery for a month after the fire, the month starting after he’d found a new place to live. It took some of the hassle out of things.
It won’t make replacing things any easier, but it does ease the financial hit.
Property policies will exclude both certain hazards called Causes of Loss or Perils and certain types of property. Generally policies fall into two catigories Named Peril in which the policy lays out excaclty which Causs of Loss are covered. The cheapest policies cover only 8-12 Named Perils. The second type is ‘All Risk’ which coverage damage from all Perils except those expressly excluded. If you can aford it I say get this policy.
Since the subscribers to these boards are all highly intelegent people I’d recomend you ask for a specimin copy of the policy and read it over. A renters policy should take you but 30 minutes to get through. They are relatively easy to read and comprension of the terms doesn’t really take any special training. By doing this you may get a better understanding of the policy than many agents I’ve dealt with.
I disagree, don’t get renter’s insurance if you can comfortably financially afford to replace your possessions. I was considering renters insurance but then I realised that apart from a high end but 3 year old laptop, I was living a pretty minimalist lifestyle and didn’t own anything of significant financial value. Sure, I would suffer quite a bit of emotional loss but there was nothing in my room I couldn’t afford to replace.
As it turns out, my laptop did get stolen later that year but I just went and got a new one.
Did you get the replacement value kind or the one where they pay you what your stuff was worth at the time of the loss?
I concur that renter’s insurance makes a lot of sense - but not by any means that all insurance does.
If you want a handy example of insane insurance, take a look at what rental car companies charge for full coverage. Extended warranties on retail purchases aren’t as bad (not much is) but they should be approached with caution - some are serious ripoffs.
Renter’s insurance is about the most practical thing you can do as a renter. When I rented, I lived in a two family unit. My neighbors were jackasses and the thought that one of their crazy parties would end up with my back porch in flames gave me fits. The insurance gives you peace of mind if the unthinkable happens. I used to live in Boston, and during the winter there were always stories of basement fires, flooding when the snow melted. A lot of bad stuff can happen, even if you live in a “safe” neighborhood and never put yourself at risk. Your next-door/up-or-downstairs neighbor could be a complete tool.
It costs next to nothing, and if you get a policy with your car insurance, there’s usually a discount.
Shalmanese, unless you’re quite wealthy, I suspect a fire or flood would create a significant dent in your lifestyle. Sure, nobody’s going to steal your bed or your couch, but they’re flammable…
Not that I disagree with the sentiment, but the policy I had when I used to rent just didn’t cover my stuff – it also covered damage done to OTHER people’s stuff through my negligence (if I start a fire accidentally, or let a tub overflow, or what have you). In a large building, that would be an important consideration even if you had nothin’.
They didn’t raise my rates or drop me, but a few months after it was all over, I increased my own coverage so my rates went up after all. I had renter’s thru the same company as my auto insurance, and now they’re my homeowner’s as well. They’ve never raised my car insurance for various claims over the years either.
You have a bed, right? A new mattress and box spring can cost $300 or $400 USD. How about a couch? How many bookshelves do you own? The cheap ones like I have cost $50 a piece if they’re on sale. Then there’s the cost of a television and something to put it on and plates, pots and pans in the kitchen. Do you own a suit? How much did that cost? How about the rest of your clothes? For that matter, if you’re a Doper, I suspect you own more than just a couple of books. How much would it cost to replace your entire library?
My fiance lost everything on that list but some of his clothes, and they were saturated with smoke and water. Not all of the clothes were salvageable, but the insurance company did put him in touch with a company which specializes in cleaning clothes which have sufferd such damage. He got renters insurance because he was worried about theft; instead, he got fire, caused by someone else’s foolishness.
When he was making up the list of what he lost and what it would cost to replace things, it was surprising how quickly it added up and how long the list was. His policy covers replacement value, but as the list became longer, he realized he was going to exceed the value of the policy. He can afford to replace what he lost, but it’s going to cost a lot to do so. I’m glad he doesn’t have to take the financial hit.
In my experience, you should even have renter’s insurance if you’re shacked up with an insured homeowner. We were burgled years ago. The fact that I was not married to Mr. K made a difference. Had I just been over for a visit, my $400 gold necklace would have been covered. Since I lived there, State Farm wouldn’t pay. If it was HIS necklace, they would have. Go Fucking Figure.
Excuse me. I just wanted to comment on this. My fiance’s bed and couch didn’t catch fire, but they’re still lost. Because his building was condemned after the fire, he was not allowed in the building to recover his things. Even if he had been, there was no practical way to maneover a large, heavy sofa down a fire escape from a third floor walk up, and the guys from the salvage company weren’t prepared to risk their backs to recover it. Even if they had, it probably would have been too badly damaged by smoke and water to be recoverable, as the bed would have been. Your bed and sofa don’t have to actually catch fire to have to be lost to a fire.
As you have already purchased your policy, I will second the advice for others who come along:
Absolutely, positively, get renters insurance. The premium is pennies, and it can make your life so much easier should something bad happen. Luckily I have not had to use my insurance (first renters, now homeowners) for anything, but I got the good sense scared into me very quickly.
When I was in college, an apartment building right off of campus caught fire. The fire completely gutted 20 apartments, and those 20 people lost EVERYTHING. I recall reading in the paper, and they mentioned that most of the people did not have insurance. I then quickly added up my assets, and even in those days, it was enough to raise eyebrows…the cost of your clothing alone is huge.
I got an insurance policy the very next day, and I think that first policy was only $60 a year with a $100 deductible. WAY worth it.
Property insurance is so cheap, it’s way worth it. My homeowners policy, which of course covers my home and all posessions, my car insurance (liability and collision) on two vehicles, and a separate valuable articles policy (not connected to the homeowners) for my rather large camera kit, combined costs ~ $100 a month, so it’s not like it’s a back breaker.
I got renter’s insurance because the first thing the news reporter asks the poor person who just got burned out of their apartment dwelling is, “Do you have insurance?”
Usually the answer is no. I didn’t want to be one of those people.
I had renter’s insurance at a time when most of my worldly possessions were in a U-Store-It facility. I was renting a room in a house and only had some clothes and a few books and such. Everything else was in storage. Someone broke into my rental unit and made off with pretty much everything. Full set of golf clubs. Full set of scuba gear. All my CDs and VHS tapes. Stereo equipment, including high-end speakers. Washer and Dryer. I guess they just loaded up the truck and took off.
My renter’s insurance covered everything. How did they verify? They asked me for whatever receipts I had and then for me to just document the rest. I gave them the name of 300 CDs and they used their buying service to purchase new ones for me. Same with the videos. The speakers were of a model not currently in production, so they upgraded me to the next higher set. The asked me if I wanted replacements for the golf and scuba and appliances and such or if I would rather have the money (replacement value). I took the money.
Worked out well. I was going to be moving across the country and being shed of clutter (not to mention a nice fat check) really helped.
And no, my rates did not go up. I’ve had a great relationship with insurance company. Auto, homeowners, life, plus they’ve carried my mortgage and provided me with credit and banking services.
I found something interesting. I bought my renters insurance through my Car ins co. This gave me a discount on both, and almost made the renters ins free.
Yeah, i’ve had weird situations like that. I was getting car insurance, and as it turned out by getting a throwaway $10,000 life insurance policy, the whole deal was cheaper than the car policy alone. Multi-line discounts are odd beasts.
Read post #7 again. Liability claims, while rare, can be VERY expensive. Can you comfortably financially afford to pay for someone’s medical bills?
But don’t worry. Stuff like that always happens to other people…
Remember, too, that when you slowly accumulate stuff over time, you get good deals: you can buy your clothes at goodwill or consignment stores or on clearance and dress well for a pittance, but you can’t go assemble anything like the same wardrobe in a week. Half of the big items in my house were either free hand-me-downs or bought for a pittance, but I’d have to replace them with something new. Speed is expensive, and when you lose everything all at once, you want to replace the basics PDQ.
At that time, all the furniture was provided by the landlord. At my new place, I own all the furniture but it only cost $400 total for a bed/table/dresser/mirror/bookshelf.
I watch all my TV on my laptop
This is probably where most of my money goes. I have a $130 kitchen knife and a few odds and ends but I can’t imagine it’s over $1000 total.
I wish I was in a career where I was able to wear a suit but I’m not. My wardrobe is maybe another $1000.
I gave away all but a select few books when I moved here. Everything since I’ve got here has been pretty much second hand. My library, although decent sized, can’t be worth more than $300.
So in the event of a catastrophic burn-your-house down type emergency, I would be out about $5000 or so. I’m pretty sure I wouldn’t have much troubles raising that in a bona fide emergency. I have about that much in savings right now.
Remember, Insurance companies operate on pretty simple principles, you’re trading margins for a reduction in variance. Renter’s insurance is only “cheap” because of the low probability of a claim being made. If you can afford to take the financial hit without breaking a sweat, then it doesn’t make sense to spend the money.
I wasn’t aware that renters insurance covers liability though. That changes the equation somewhat and I’ll have to reconsider.