Your Guide to Buying Renter’s Insurance – 7 Tips for Buying the Right Policy
You’re moving into your first apartment. Congratulations on this big step. Now that you have a place to call your own, you need to think about how you’ll protect it. These tips can help you set up the right type of renter’s insurance for your new home.
#1: Know the Value of Coverage
Not all property management companies require renter’s insurance – but it is always a good investment. Your landlord’s property insurance doesn’t cover your risks. Most renters should purchase a policy for peace of mind. If a fire were to occur, you want help recouping your losses.
#2: It’s Inexpensive Protection
The cost of renter’s insurance does change from policy to policy. Most of the time, it’s rather inexpensive. The nationwide average is less than $16 a month.
#3: Make Sure to Purchase Enough Coverage for Your Belongings
Work with your agent to determine the value of your belongings. If you have a high-end television or a gaming laptop, you may benefit from more enhanced coverage to protect those items. If you don’t have extensive valuables, you don’t want to overpay either.
#4: Read What’s Not Covered
Renter’s insurance typically covers your belongings and liability insurance. There are limitations with every policy, though. Read these exclusions carefully. Many policies don’t cover damage caused by earthquakes.
#5: Talk to Your Agent About Coverage Types
Actual Cash Value is one type of renter’s insurance that pays you the value of the item at the time it is lost. Replacement Cost coverage is slightly different. It pays you based on the cost to buy a similar item with the same features and specs. Actual cash value factors in depreciation of the value of your item – that may mean you’ll get less than what you need to buy a new item.
#6: Ask About Bundling Your Insurance Needs
Did you know you can bundle renter’s insurance with your auto insurance? Doing this could save you between 10 and 20 percent of your total cost. Talk to your agent about the other types of coverage that may apply to you, such as recreational vehicles.
#7: Get Your Deductible Just Right
A deductible is an amount you pay before the insurer covers the rest. Let’s say a fire caused $2,000 worth of damage that you’re responsible for. If you have a $500 deductible, the insurer may pay $1,500 of the costs while you cover the remaining amount. You can increase or reduce your deductible. Make sure it’s fitting to your budget. If you can afford a higher deductible, that could lower the cost of your renter’s insurance policy.
Most importantly, ask questions. Renter’s insurance should always be specific to where you live, your lifestyle, and your financial goals. It’s an inexpensive way to get the coverage you need to protect yourself from loss after an accidental or unavoidable incident. It’s also very easy to qualify for and to put in place as you are moving into your new home.
Renters’ quotes take about five minutes.
Please contact me and let’s get you protected!
Joseph Denbow, MBA