Apartment insurance, also called tenant homeowners insurance or renters insurance, may be the best insurance bargain offered to consumers. Policy holders get a lot of coverage without paying a lot of money.

Many apartment complexes, as well as a lot of smaller landlords, require their tenants to carry this insurance in the lease. However, even if you are not required to purchase it, it still makes a lot of sense.

Apartment Renters insurance policies are most often written on a standard HO-4 policy form. The HO-4 policy form provide coverage for 4 distinct types of losses for a low price. The coverages include Personal Property, Additional Living Expenses (sometimes called Loss of Use), Personal Liability, and Medical Payments.

The most common claim filed, is for personal property. A renters contract will include contents or personal property coverage. This is part of the HO-4. This covers much of the personal property of the insured anywhere in the world for things like fire, theft, and vandalism. Worldwide coverage means it covers articles stolen from your bags outside of the US. It can also cover you if your personal property is stolen from the trunk of your auto. Property coverage is on a named perils basis - that means that if the peril is not listed, it's not covered. Examples of uncovered loss, would include leaving a laptop behind after exiting a bus, or damage to a television by a thrown baseball. The plan also includes built in limitations of coverage for things like cash, jewelry, documents, and handguns. For an extra cost, some of these coverages can be added onto the contract via endorsement.

Loss of use protection, can pay for temporary lodgings and related increased costs should your apartment become uninhabitable due to a covered peril. Most frequently, this is invoked due to a fire in the unit.

Personal Liability is also a frequently used coverage. It pays for lawsuit defense and judgment payment for the insured if they are sued for a covered cause of loss. This typically includes dog bites, slip and fall claims from visitors, or even a bicycle accident involving a child.

Medical Payments coverage pays for a limited amount of medical bills only coverage, for a non-resident of the household who is injured on premises. This is "no fault" coverage. It doesn't matter who caused the injury. It won't matter how it happened, or who was at fault for it. For example if someone walks into the wall and breaks his or her nose, and doesn't live in the household, Medical Payments coverage can apply. Keep in mind, only the insured can file the claim.

In most parts of the United States, a renters insurance contract will cost around $150 or $200 each year, for $20,000 of coverage on contents, $4,000 of additional living expense, $100,000 of personal liability, and $1,000 of medical payments coverage. Better yet, if a tenant homeowners and auto policy are written with the same insurer, they will usually offer discounts on BOTH policies, from 10% to up to 40% depending on any individual company, with an average being around 25%.

Because the cost of tenant insurance is so low, even the tightest of budgets can usually find a way to manage the cost. In fact a multi-policy discount can make the rate extremely low.

If you insure your autos with the same insurance company, you can actually save more than an apartment renter's insurance costs. This can mean that you get the renters insurance policy without paying more than you pay for the automobile insurance plan. The combination of lowering your premium and increasing your protection, is what makes the renter's one of the best deals in the insurance industry.