RENTERS

Can you be held legally responsible if a visitor to your home trips and is injured in the entranceway of your apartment? In a word, yes. You are responsible for reparations to anyone who is injured by you or your belongings if that injury takes place on your property, even when you're renting. Reparations can include paying for the injured party's medical bills and loss of income.

Similar to a Homeowners Policy, renters insurance protects you against liability not specifically covered in the policy written for the owner of the complex.

You'll also have to pay to defend yourself against a lawsuit resulting from damages suffered by others on your property or for which you may be responsible. Your landlord only is responsible for damage to the building or for damages that are a result of his/her negligence - not for protecting your belongings or defending you against liability.

Don't think your belongings are worth enough to insure? Even the tiniest studio apartment can hold thousands of dollar's worth of personal property. Renters insurance is one of the most overlooked and inexpensive forms of insurance.

You're liable to need insurance

Renters insurance protects you and your personal property in three very important ways:

1. Liability insurance provides coverage for all sums that you are legally obligated to pay as a result of a suit or claim by others that are injured by you or your:

• belongings (excluding your automobile)
• family members
• pet(s)

2. Contents insurance protects your personal property against losses from a wide variety of potential perils, such as:

• fire, lightning or smoke
• theft, vandalism or malicious mischief
• windstorm or hail
• explosion
• riot or civil commotion
• damage from aircraft, vehicles and falling objects
• plumbing-related water damage
• electrical surge

3. Additional living expense coverage provides you reasonable reimbursement for expenses above normal rent in the event your home or apartment is uninhabitable.

I got plenty of nothing

Whether you are renting your first studio apartment or the penthouse of your dreams, you probably have collected more personal property than you think. A computer, sound system, TV/VCR, mattress on the floor, and the most basic of wardrobes can add up. You will want to be able to replace these items should your home be burglarized or severely damaged.

Take the time now to create a home inventory to help you determine the value of your belongings, and to create the documentation you will need for the police, insurance adjustors and tax purposes in the event of a loss. The quickest way to create a complete home inventory list is to videotape each room and its contents, while narrating pertinent details for each item or group of items including:

• number of items
• year purchased
• purchase cost
• estimated current value
• unique qualities

If you don't have access to a video camera, create a detailed list that includes the categories above and a written description of each item or group of items. Supplement this list with photographs of valuables and collections, as well as copies of sales receipts and appraisals.

It is important that you kept a complete copy of your inventory off premises in a safety deposit box or with a friend or family member.