Do you rent an apartment, house, or condo? Do you feel that your belongings are protected from theft, natural disasters and fires through your landlord's insurance policy? If so, think again. True, your landlord or apartment community likely has insurance, but their policy only protects their own property. Hopefully, your community offers security features such as an alarm system, gated entry, keyless door lock or some combination thereof. But even with the peace of mind these barriers provide, a burglary or natural disaster can certainly deem your home and property a total loss. Purchasing a suitable renters insurance policy is the best safety net to protect the assets you have spent years accumulating.

Before speaking with several companies about their renters insurance services, take a complete inventory of your belongings and assess their value. Also, gather the receipts from each item's original purchase and appraisals for your valuables. Take a photo inventory of all items to be covered by your policy, including detailed photos of each room of your home in its entirety.

Selecting the right company to provide your renters insurance is a crucial step. Ask friends and family for recommendations, and do your own research including calling each company armed with a list of questions. Obtain a written statement of the events that are covered under each policy. Take detailed notes about each company's coverage, rates and the overall impression you receive from the representative who assists you. Remember, these are the people you will be contacting for help after a devastating loss of property, so be thorough and choose your provider wisely.

Pay attention to what situations are covered by each company, and how they may affect you lest you need to file a claim. Ask about specific disasters that may affect you based on your geographic area. For instance, is your home in an area where hurricanes or earthquakes are a viable threat? If so, you may need additional coverage for these types of events.

Throughout your research, you will come to discover that all insurance policies are not created equal. Inquire whether each policy covers the replacement cost or the actual cash value of your possessions. Replacement cost and actual cash value are entirely different means of being compensated when you file a claim. A policy covering the actual cash value of your belongings will pay you the depreciated value of your assets (minus your deductible), regardless of the amount you originally paid. A three year old television for which you originally shelled out $2,500 will not be covered for the full $2,500 under this type of policy. A policy covering the replacement cost, however, will allow you to collect the full amount that it costs you for a replacement television (minus your deductible).

Policies, coverage and rates vary greatly among providers. Taking the time to perform preliminary research will help you make an informed decision and obtain coverage from a company you trust to deliver at the time when you need it most.