Common Insurance Myths Debunked

By Young Money

Myth: Auto insurance covers personal property left inside your car.

Nope. You’ll need renters insurance to cover the stuff in your car. “Renters insurance will cover any of your items, anywhere in the world,” says Etti Baranoff, associate professor of insurance and finance at Virginia Commonwealth University in Richmond, Va.

Myth: My landlord’s apartment building insurance covers my belongings.

As a renter, you’re responsible for covering your items; your landlord isn’t. That’s why you need renters insurance. One of the first things to do after you get a policy is to either buy or borrow a digital camera to photograph everything you own. Store the photos on a portable drive that you can keep in a safe place. These photos will make it easier for you to remember what you own and report what you lost. To further help you document your belongings, the USAA Educational Foundation offers an inventory worksheet.