11 Simple Tips for Choosing the Best Insurance for Renters
Insurance

11 Simple Tips for Choosing the Best Insurance for Renters

Did you know that natural disasters are increasing in some areas of America? If you want to protect yourself as a renter, we can help.

In this guide, we’ll go over why you should consider insurance for renters.

Want to learn more? Keep reading.

1. Pick the Right Amount

Renters insurance will help cover the cost of your personal belongings in the event of a theft, accident, or natural disaster.

To decide on your policy amount, write down an inventory of your belongings.

Make a note of the value of the item and how much you think it’s presently worth.

After you add everything up, you’ll have an understanding of how much coverage you’ll need. Renters insurance won’t cover only personal property.

The policy could also protect you if someone gets injured while in your home. Decide what coverage you’ll need.

2. What Isn’t Covered With Renters Insurance?

Renters insurance covers most circumstances. Yet, some policies won’t cover damage caused by floods or earthquakes.

You could buy a separate policy to protect against these natural disasters.

When you shop around for a quote, ask about what’s covered in the policy. This way, you understand what is and isn’t covered.

If you need to move, look into renters insurance for storage unit spaces.

3. What Are the Different Types of Coverage?

You’ll choose between a Replacement Value policy or an Actual Cash Value policy.

An Actual Cash Value policy considers things like depreciation and daily use when determining the damaged property’s value.

The premium is a lot lower with this kind of policy. You won’t get as much money if you end up filing a claim.

Wear and tear and depreciation aren’t factors to worry about if you have a Replacement Value policy. The insurance company will pay you money based on what the item cost when you bought it.

You’ll pay more for this policy.

4. Consider Bundling Your Insurance Policies

You can bundle your renter’s insurance with your other policies.

Call your car insurance company. Find out if they provide renters insurance. Find out what their rate is and compare it with your other quotes.

You may save a lot of money if the insurer offers a discount for the bundle.

5. Consider a Higher Deductible

A deductible is what you’ll pay before your insurance company covers anything.

Deductible options for renters insurance could range from 200-1000 dollars. You might want a lower deductible, but you should first consider a higher deductible.

A higher deductible means you will pay more upfront. Yet, your premiums will be a lot lower.

You may save money in the long run on your premiums. Make sure you have at least 1000 dollars saved if you choose the higher deductible option.

6. Compare Traditional and Online Renters Insurance Companies

There are reputable insurers who don’t have a conventional physical location. Larger companies like Geico develop an online presence and interact with customers online.

You can buy renters insurance from a local agent. You could also consider an online insurance provider. You might have a faster process.

When shopping around policies, you can type in your needs and customize your policy. With online renters insurance companies, you can compare the policies fast.

7. Consider Where You Live

Most of the time, renters’ insurance policies get influenced by where you live. Some states experience a lot of natural disasters, so expect to have a higher yearly cost. Things like crime and weather will affect your policy.

8. What Is a Floater Policy?

You might want to get a floater policy. A floater is a separate policy that will cover stolen expensive valuables.

If you own collectibles, jewelry, or musical instruments, get a floater to protect them.

9. Do You Have Coverage When You Travel?

A lot of renter insurance policies will also include off-premises coverage. Belongings outside of your house or rental will get covered against insured disasters.

Things stolen from your hotel room or vehicle while you’re traveling could also get covered.

10. What About Additional Living Expenses?

Additional living expenses (ALE) coverage could protect you if your home got destroyed by an insured disaster.

ALE will cover expenses if you need to live somewhere else. The ALE part of your policy covers meals, hotel bills, or temporary rental costs.

Most policies reimburse you with the total difference between your typical living expenses and additional living expenses.

There are limits to the amount that your insurer will pay. There also might be a time limit specifying how long you can get ALE payments.

Find out what the limits are with your policy.

11. How to Get Discounts on Your Policy

The rates will vary depending on where you live and the company you choose.

Renters insurance will provide discounts if you take measures to reduce risks.

If you install burglar or fire alarm systems, sprinkler systems, or fire extinguishers, you could get a discount. A deadbolt lock on the outside door could also impact your policy.

Also, insurance could end up being cheaper if you pay for the policy all upfront. If you can pay annually instead of monthly, try to pay it all upfront. You will save on some administrative fees.

Now You Have Some Tips on Insurance for Renters

We hope this guide on renters insurance was helpful. Make sure you compare quotes from different companies. Find out if you can bundle insurance policies together. Insurance for renters will protect your belongings in the event of a disaster.

Was this guide helpful? Check out our other resources on health, family, and more.

Image Attribution:
Adobe Stock royalty-free image #121484880, ‘Applying for a Renters Insurance’ uploaded by Karen Roach, standard license purchased from https://stock.adobe.com/images/download/121484880; file retrieved on February 9th, 2019. License details available at https://stock.adobe.com/license-terms – image is licensed under the Adobe Stock Standard License.

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