By Sam McCammon, Area Vice President, Agency

Moving into your first apartment or rental home is an exciting milestone. As a parent, I spent weeks helping my son get ready for his first apartment as he headed back to college. We talked about roommates, budgeting and everything he'd need to make his new place feel like home. We made shopping lists, packed boxes and checked off what seemed like an endless to-do list.

Then, just before move-in day, I realized there was one thing we hadn't talked about.

I asked him:

"What would you do if your laptop was stolen from your apartment?"

He paused.

Like many first-time renters, he'd spent plenty of time thinking about what he'd need in his apartment, but not much time thinking about what could happen if something unexpected occurred.

That simple question opened the door to a conversation about renters insurance – what it is, what it may help cover, and why it's something every renter should understand before signing a lease.

Whether you're renting your first apartment or your fifth, understanding your insurance options before move-in day can help you feel more prepared for whatever comes next.

What is renters insurance?

Renters insurance is designed to help protect your personal belongings if they're damaged or stolen because of a covered loss.

It may also provide liability coverage if someone is injured in your apartment or if you accidentally damage someone else's property.

Think of it as protection for your belongings – and for some of the unexpected situations that can happen while renting. Many landlords also require you to have it.

Should I consider renters insurance?

Every renters situation is different, but it's worth taking a moment to think about everything you own.

It adds up faster than you think.

Think about everything you may have in your home:

• Laptop
• Phone
• Television
• Gaming system
• Bicycle
• Clothing
• Furniture
• Kitchen items
• Books
• Headphones

Replacing everything after a fire, theft or another covered loss could cost thousands of dollars. Renters insurance may help make recovering from those situations a little easier.

Before move-in day, consider taking photos of your belongings or creating a simple home inventory. It can make it easier to remember what you own if you ever experience a covered loss.

Who covers the building?

Your landlord's insurance generally protects the building – not your belongings inside your apartment.

That's one of the biggest misconceptions many renters have.

Is renters insurance required?

It depends on your lease, but it's becoming more common. Many landlords require tenants to carry renter's insurance before moving in and may ask you to provide proof of coverage, such as your declarations page. Others simply recommend it.

Even when it isn't required, many renters choose it for the added financial protection.

What does renters insurance typically cover?

Coverage depends on your policy, but renters insurance may help with losses caused by covered events such as:

• Fire
• Smoke damage
• Theft
• Vandalism

Many policies also include personal liability coverage and may help pay for additional living expenses if you can't stay in your apartment because of a covered loss.

Always review your policy so you understand what’s covered, what isn't, and how your deductible works.

What isn't usually covered?

Like all insurance policies, renters insurance has exclusions.

For example, a standard policy generally doesn't cover:

• Flood damage
• Earthquakes
• Normal wear and tear
• Damage caused by pests or pets
• Intentional damage

Some belongings may need additional coverage depending on their value and your policy limits. That could include the laptop you use every day, as well as jewelry, musical instruments, cameras or collectibles.

Take a look at the value of the items you own and review your policy limits to understand whether you have enough coverage. For eligible items that need additional protection, a State Farm® Personal Articles Policy can provide broader coverage.

Does my apartment's insurance fee mean I have renters insurance?

Not necessarily. It's easy to assume that an insurance-related fee on your lease means your belongings are protected, but that's not always the case. Some of these fees are intended to help protect the property owner or meet landlord requirements. If your lease includes one, ask what it covers and whether you'll still need your own renter's insurance policy to help protect your personal belongings.

How much does renters insurance cost?

The cost depends on several factors, including where you live, the coverage you choose and other personal details.

Many renters are surprised to learn that renters insurance can be more affordable than they expected. The average renters policy costs about $15 per month for up to $35,000 in personal property coverage – often less than you spend on coffee each month.

You may be able to lower your premium by:

• Choosing a higher deductible that fits your budget.
• Asking about available discounts.
• Bundling eligible insurance policies.
• Reviewing your coverage as your needs change.

Getting a quote from a State Farm agent or online at statefarm.com® can help you understand your options before deciding what's right for you.

Questions to ask before signing your lease

Before move-in day, ask yourself:

• Do I know what my landlord's insurance covers?
• How much would it cost to replace everything I own?
• Does my apartment require renters insurance?
• Do I have valuable items that may need additional coverage?
• Do I understand what my policy covers – and what it doesn't?

Taking a few minutes to answer these questions today may help prevent bigger surprises later.

A conversation worth having

When I think back to that conversation with my son, I'm glad we had it before move-in day – not after something unexpected happened.

Whether you're moving into your first apartment or renting a home, renters insurance is one of those things many people don't think about until they need it.

Taking a few minutes to talk to your local State Farm agent and understand your options before signing a lease may help you feel more confident about whatever comes next.

The biggest challenge these landlords face is knowing what policy they need to protect their rental properties.

To help, State Farm and Rentalutions co-hosted a thirty-minute webinar to explain the insurance needs of independent landlords. Property owners from across the country joined the webinar live, and even more have watched the recording.

In the webinar, State Farm and Rentalutions discussed the following topics:

• How rental property insurance is different from homeowner’s insurance
• How insurance benefits rental property owners
• What is and is not covered by rental property policies
• The importance of renters insurance for tenants
• Questions submitted by participants

State Farm P&C Underwriting Consultant Sherry Parker, CPCU, CLU, explained the four components of a rental owner’s policy; dwelling coverage, personal property coverage, loss of rents coverage, and liability coverage. These coverage’s are unique to a rental owner’s policy and are generally different from what’s included in a homeowner’s policy.

Landlords can buy additional coverage to cover damage from floods and earthquakes. Some landlords may also benefit from an overarching umbrella policy.

There are different policies for different types of rental properties. The different policies cover single family homes, duplexes, condo units, and apartment buildings.

This webinar is part of ongoing efforts by State Farm and Rentalutions to help landlords manage their small business. Both companies recognize the benefits of educating customers and finding the best product for each customer’s situation.

Ryan Coon, co-founder and CEO of Rentalutions said, “Our goal is making renting easy for landlords and their tenants. One aspect of being a great landlord is having the right insurance coverage. State Farm is the largest property insurer in the country, and has been a great resource in helping educate our landlords on their insurance needs.”

To learn more about the different insurance needs of landlords, read the Rentalutions Guide to Landlord’s Insurance or contact a State Farm agent.

Finally, if you are a landlord who isn't using Rentalutions, you can save time by managing your properties online. Create an account now for free, and get access to special discounted pricing courtesy of State Farm.