Protect Yourself if You Rent

The downward economy has taken its toll on the housing market. Many people are choosing or finding it necessary to live as renters rather than homeowners. Other renters are students, anxiously awaiting their first foray into residential independence. But these same people may be unaware of how to safeguard their belongings in a rental situation. Oftentimes renters mistakenly forego financial protection and are then left high and dry in the event of a burglary, flood or fire.

Laptops, MP3 players, global positioning systems, jewelry, and cell phones are at the top of the list for would-be thieves. Furniture and clothing are also expensive to replace. According to MetLife Auto & Home®, the average person is estimated to have approximately $20,000 in possessions. In a rental property, individuals such as a superintendent or landlord may have access to your home, as may hired contractors. It's important to protect all of your belongings so you don't have to pay out of pocket if something is taken or damaged.

Renting an apartment is not like living in an on-campus dorm or in a private residence, where belongings are typically covered by a homeowners insurance policy. Landlord's insurance only protects the actual property -- not your valuables or the cost of temporary housing -- and it doesn't protect you in case of a lawsuit. You should investigate rental insurance, which is something that, despite the warnings, 80 percent of college and other renters do not do, according to research.

"For a few hundred dollars a year or less, you can purchase a solid renter's policy that covers protection for your valuables -- up to $75,000 -- as well as protection against personal liability," said Mario Morales, an underwriting manager at MetLife Auto & Home. "Imagine experiencing a fire or other disaster in your apartment, and having to replace all your valuables not to mention all the furniture, pots, pans, dishes, and other necessities at your own expense. Hopefully, you won't have a theft or experience a fire. But, if you did, you'd know your valuables were protected."

When safeguarding your apartment and choosing a rental insurance policy, consider these important tips from MetLife Auto & Home:

Ask whether the renters coverage pays actual cash value or replacement cost. With "actual cash value," your coverage will pay only for what your property was worth at the time it was damaged or stolen, due to depreciation. "Replacement cost" coverage will replace the item at current prices.

Take advantage of a discount for multiple policies. Often insurance companies provide a discount when a person has multiple policies, such as renter's insurance, car insurance, or life insurance.

Add extra protection for unique items with special value. For expensive items such as jewelry, furs, fine arts, sterling silver flatware, antiques, and other collectibles, renters should add an "endorsement," which provides additional protection above the monetary limits of a traditional policy.

Keep track of possessions with a personal property inventory to help when filing claims and keep a copy in a safe place outside the apartment. MetLife's Life Advice Series advises that every home have a personal property inventory because it will help you determine the approximate value of your possessions, and consequently, how much insurance you need to cover your personal property.

For additional information about renting a home and renter's insurance, MetLife Auto & Home offers consumers two free, comprehensive brochures as part of the Life Advice series: "Homeowners Insurance and Your Home," as well as a "Personal Property Inventory" brochure to help people keep track of their valuables. These materials are available by calling 1-800-638-5433 (1-800-MET-LIFE), or 1-866-MET-VIDA (for callers that prefer to speak in Spanish). Also visit, www.metlife.com.