[I366]Integration Of Armed Forces

Each year you accumulate more valuables. There comes a time when you start to realize that what you own would be difficult and costly to replace if something should happen to like a fire or a robbery. Have you ever taken the time to total how much it would cost you to replace your valuables? We're not just talking about precious paintings and antiques. We're talking about the everyday items you use and wear that are a must have to you. If you did you would find that the replacement value of these possessions that you may be taking for granted add up to a very big number. Surveys show that the average renter of a 2 bedroom residence has more than $25,000 in possessions!

What would happen if all of your possessions were lost today?

This loss would be devastating for most people, specifically those who were not protected by insurance. This was the situation for Private 1st Class Brian Roberts. His rented apartment was destroyed by a fire early this year. Combing through the ashes, he and his girlfriend estimated close to $28,000 in losses. Unfortunately, Roberts did not have renters insurance. Instead he was left in a sizable financial hardship trying to build back what was lost overnight, that which had taken him years to acquire.

Because this unfortunate scenario could happen to you, it is advisable to look into renters insurance and at least educate yourself in the pros and cons of having it. It could make the difference between a tremendous inconvenience and a financial burden that will take years to reconcile. Depending on the insurance company, renters insurance policies pay to repair or replace personal property that is stolen, damaged or destroyed due to fire, severe weather events and other causes. It also can protect your assets if you are found liable for lawsuits.

Because renters aren't required to carry insurance, unlike homeowners, many military personnel may think that renters insurance is an expense that is not necessary. However, given the above example, when you look at what may cost as little as the price of a pepperoni pizza each month a renters policy could be invaluable.

Military Personnel Living Overseas

Low-cost renters policies can offer added protection even for servicemembers living overseas. Premiums will vary by company and the level of coverage you choose and your marital status. For example if you are single, military personnel stationed in western Europe you will pay the following:

A Example of Renters Insurance Monthly Premium

$9.00- for $10,000 of coverage for detailed situations such as theft, fire or ..etc (with $150 deductible)

$3.00 - "Replacement cost" coverage option

$7.00 - $100,000 of liability protection, and up to $1,000 for medical payments.

Total: $19.00 per month ($228 per year)

Protecting Property

Many military personnel don't purchase renters insurance because they assume they are protected by their land lord's insurance since they are paying rent and don't own the property. In most all cases, the property owners policy only covers the building, not what is inside the building, meaning your valuables.

The military provides some protection for personnel living in government housing, but you should be very clear about what is covered and the military's limits for reimbursement. Officers living in privatized family housing might find the value of their belongings far surpasses the government's coverage limit. And while junior enlisted personnel may not own furniture or major appliances, a CD collection, bicycle, DVD player and other items could add up to warrant an inexpensive renters policy.

Levels of personal property coverage can vary by company and policy. A basic policy may cost as little as $5 per month for $2,500 worth of coverage, while a more comprehensive policy might offer $100,000 worth of coverage for $30 per month. All companies place limits on individual categories of property. For instance, a typical policy might limit total payments to $200 for cash and coins; $1,000 for valuable papers; $1,000 for theft of jewelry and watches; and $2,000 for theft of guns.

If you have specific items for which the value exceeds the policy limits, you may elect to pay a few dollars more to add a "personal article floater" to your coverage. Often used to fully insure expensive jewelry or electronics, "floaters" have no deductible and usually cover a broader range of claims.

In Addition, Protecting Yourself From Liability

Renters insurance also protects your financial well-being through liability coverage. If a visitor to your apartment slips on a wet floor and is injured, you could be held responsible for thousands of dollars in medical bills. In this type of situation, a renters insurance policy likely would cover the costs up to a specified limit.

Or if you leave the toaster oven on and a fire breaks out, your simple mistake could leave you personally responsible for damages to the building and others' property. Again, renters insurance could provide $100,000 or more to cover your liability, and even your legal fees in some cases.

Your Renter Insurance Travels with You
Another advantage of renters insurance is its transportability. This is a great benefit for military personnel who re-locate frequently. During a move, most renters policies cover personal possessions during shipment or while in storage. And when you travel, your luggage and other personal items are covered up to the limits of your policy. So if your duffel disappears from the airport baggage claim or your camera is stolen, there's a good chance renters insurance will cover it.

Before you buy renter's insurance it's important to understand the value of your possessions to determine exactly how much coverage you need, if any. You may find that to the contrary it may not be right to get renters insurance in your circumstance.

The first step is to take an inventory of your belongings, including how much you paid for each item and its current value. Make a record of your possessions, with pictures or a video camera, and store the records in a safe place that is outside your home so they are less likely to be destroyed in a disaster. The record can help you determine your coverage needs, and also can serve as your proof of ownership if a loss occurs, helping the insurance company to estimate your payment.

Next, determine if you prefer to purchase a "replacement-cost" policy, which covers the cost of replacing lost items at today's prices, or a "cash value" policy, which covers what the item is worth after depreciation. Although it typically costs about 15 percent more, many renters find replacement-cost coverage to be a better value.

As discussed above, its especially important for military personnel who relocate to look for a renters insurance policy that does not contain territorial limits. A policy without these restrictions will cover your belongings nearly anywhere in the world, with few exceptions.

Do your research and weigh your options. Whatever your situation is or whatever you decide to do, you owe it to yourself to educate yourself to know what the potential scenarios are, what your options are and then make an informed decision that is best for you.