Tenant insurance is universal. Whether you rent a whole house or a small apartment, or live with roommates, renters insurance covers a number of issues, such as theft of items, guest injuries and hotel bills, if you can’t live in your unit due to an insured event (for example, a fire). Cover.
Josh Laroche of Toggle by Farmers Insurance says, “Replacing everything can quickly become expensive and a significant burden.” Homeowners insurance is a relatively inexpensive way to deal with this risk.”
How do I get renters insurance?
Finding the best renters insurance often involves researching, determining how much insurance you need, and getting quotes from several companies. Here are five steps to purchasing renters insurance.
- Understand what is covered by renters insurance.
- Determine the amount of coverage.
- Research renters insurance companies.
- Compare tenant insurance quotes.
- Choose an insurance policy
Step 1: Understand what is covered by renters insurance
Renters insurance is generally divided into three main types.
Personal Property Insurance
Think of all the things you have accumulated – furniture, clothing, kitchenware, jewelry, collectibles, appliances, etc. This insurance pays for repair or replacement if they are stolen or damaged by an insured event, such as a fire or tornado.
Many people refuse to purchase rental property insurance because they underestimate the amount of property they own. If you lost all your possessions in a natural disaster, could you afford to buy new ones?
Liability insurance covers injuries and property damage you cause to others when you are legally responsible. For example, liability insurance covers medical expenses if a guest is injured in your apartment. Liability insurance also pays for legal fees if you are sued as a result of an accident.
Supplemental Living Expenses (SLE)
SLE, also known as “deprivation of use,” pays for hotel bills, restaurant meals, and services such as pet care and laundry if you can no longer live in your apartment due to damage covered by your policy.
Renters insurance does not apply to damage to the building itself. It applies to the landlord’s insurance.
Step 2: Determine the scope of coverage
The next step is to determine the amount of renters insurance. A good place to start is with a home inventory.
A good home inventory should contain the following
- A description of the item (or group of items).
- An appraisal
- Date of purchase
- Receipts and serial numbers (if available).
You can use an app like the National Association of Insurance Commissioners’ Housing Inventory app (available on the App Store or Google Play).
After gathering all of your belongings into a handy list, calculate their total value and create a quote for the amount of personal property you need to insure. Typically, this is $20,000 or $30,000, but you can buy more if you need it.
American Family Life Insurance offers a renters insurance calculator that allows you to determine the amount of coverage.
The standard coverage amount for renters liability insurance is a standard amount, such as $100,000. This amount can and should be increased to account for the possibility of legal action.
Additional living expense coverage is also set at a standard amount, such as 40% of the personal effects coverage. If the personal effects coverage amount is $30,000, the loss of use amount would be $12,000. You can also purchase a higher coverage amount here.
Step 3: Research renters insurance companies.
Look for companies that offer rental property insurance in your state. The first step is to contact your current auto insurance company. If you purchase both policies from the same insurer, you can take advantage of bundled rates.
Don’t limit yourself to the big companies with humorous ads, though. Check out the best renters insurance companies that offer competitive prices and excellent customer service.
It’s also a good idea to find out what other types of insurance companies offer coverage in addition to the main types. This will allow you to find the most suitable insurance for your needs. For example, one company offers pet owner liability insurance that pays up to $500 on top of your deposit if your pet causes damage to your owner’s property, which is recommended for pet owners.
If it is important to you to maximize future insurance payments, you should consider a company that offers a low deductible. American Family is such a company, which reduces your deductible each year if you don’t apply for renters insurance.
Step #4: Compare rental insurance quotes.
Once you have a list of the insurance companies you prefer, you should request quotes.
Get quotes from each insurance company for the same coverage so you can compare different insurers. Don’t forget to ask if there are any discounts.
The easiest way to get rental car insurance is to compare quotes from several insurers. Free quotes can be obtained online or by phone from an independent insurance agent.
Step 5: Choose a company and apply.
Once you’ve determined the scope of insurance coverage you want and reviewed quotes from different companies, you can choose the rental insurance that’s best for you.
If price is most important to you, you will probably choose the company with the lowest rates. If you value specific coverage and benefits more than price, you can also choose a company that better suits your needs, even if it costs a little more. You can apply for renters insurance on most insurers’ websites.
Don’t make renters insurance a one-time deal. It’s a good idea to review your quote at least every two years to make sure it’s still affordable.
Lily Poole is a Property and Home Insurance officer by profession. She is pretty well experienced in the renters insurance brooklyn and accounting field and has an impressive profile in the training and development industry.