It can't happen to you? OK - but get insurance in case it does

When a student moves off campus or a young person moves into that first apartment, protection of worldly goods may not seem as important as finding furniture or stocking the fridge.

A leaky roof, a fire or the theft of an expensive laptop can bring the risks front and center. Once you move away from home, your parents' homeowners insurance may not cover lost, damaged or stolen items. The landlord's policy won't cover them, either.

Oklahoma Insurance Commissioner Kim Holland said a survey of college students in that state showed that many were aware that they needed some kind of insurance, but didn't necessarily want to buy it.

Insurance simply wasn't a priority for spending their money. "When you take into consideration computers, stereos, iPods, cell phones - these are the kinds of possessions that are attractive to thieves or that could easily be damaged if there is a fire or flood," Holland said.

"It's a real eye-opener to some of these young folks," she said. "If they had to replace this all of a sudden, it would be a lot more expensive than $100 or $200."

Renters' insurance can protect belongings, usually for a small outlay of money, said Loretta Worters, vice president of the Insurance Information Institute. Renters' policies typically cover the same perils as homeowners' policies: fire, theft, lightning, wind and some types of water damage. A separate flood or earthquake policy may be needed if your housing is at risk for those types of natural disasters.

A typical policy costs $100 to $300 a year, depending on the deductible and the amount of coverage, Worters said. The cost will depend on a variety of things, including the buyer's credit score.

Renters' policies start at about $20,000 in coverage, and deductibles vary. A policy with a $1,000 deductible will cost less than one with a $500 deductible. The deductible means that you're responsible for that amount of the loss, with the insurance company paying for amounts over the deductible.

"The other real issue is liability," Worters said. "You could have somebody who slips and falls in your apartment and sues you." The renters' policy usually will include liability insurance that will defend a lawsuit and pay some medical expenses.

When buying a policy, it's important to find out what the deductible is and what the liability limits are. An insurance agent can give you quotes on the cost of policies with different liability limits and deductibles.

Mary Kempker, consumer affairs director for the Missouri insurance department, advises renters to shop around for a policy with local insurance agents or online. They should check the department's Web site to see how the insurer stacks up on complaints and how they're rated by an agency like A.M. Best.

If a renter has items of exceptional value, like an expensive piece of jewelry or a specialized computer, he or she should ask for an endorsement that covers that item in addition to the usual personal property.

Renters and homeowners can improve their ability to collect on an insurance policy by keeping an inventory of their belongings. Receipts for items purchased and pictures can be useful, too.

Linda Bridges of A. Jay Meier & Associates insurance agency in Brentwood, Mo., recommends that people open a closet door or dresser drawer and take a picture of the contents.

"It can help jog your memory" if you're trying to come up with a list of lost or damaged property, Bridges said. *