insurance

5 knocks on renters insurance -- all bogus

1. My landlord's insurance covers me 

Wrong. Your landlord's insurance covers his building, but will likely never include your personal possessions, says Portman, who points out that your property is always your responsibility to insure.

2. Buying renters insurance is too expensive 

To be fair, prices vary when it comes to renters insurance. But it's a relatively cheap product as far as insurance goes. Moree estimates that a renter could obtain coverage for as little as 50 cents per day, depending on the total value of their household. But for most renters, coverage should run about $250 per year, according to Kelly Lyttle, a manager of personal insurance lines for William Gammon Insurance. That figure works out to about 68 cents per day -- far less than your daily cup of coffee at Starbucks.

A good place to find insurers and rates in your town is at InsureMe.com, a Bankrate company.

3. My stuff isn't worth enough to insure 

If you're living in your first apartment, sitting on a couch you bought at a garage sale, watching a television that was a hand-me-down from your parents, it's easy to say your possessions are essentially worthless. But that would be a big mistake, says Moree, who adds renters should think in terms of the total cost they would incur tomorrow should a catastrophe happen today. "It adds up very quickly, and it can be expensive to replace everything in your apartment, from clothes to furniture," Moree says. To get an idea of how quickly costs add up, Allstate went to stores like Wal-Mart, IKEA and Bed, Bath & Beyond to determine a rough cost of outfitting an entire apartment all at once. Factoring in high-end items like home electronics and things that people often forget about like toothbrushes and socks, Allstate found that it would cost a single renter living in a one bedroom apartment more than $13,000 to replace everything they own.

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