Here are a few things that will help you purchase the right renters insurance:
What is renters insurance? How does the insurance work?
Renters insurance protects the renter’s personal belongings in or on the rental property, including appliances, sports equipment, clothing, and furniture. Renters insurance may also provide coverage for personal injuries and other expenses if a visitor sustains injuries in or on the rental property.
In case you and your family have to move out of the rental property because of a fire, hurricane, or other covered events, the renters insurance may reimburse you for the living expenses, like meals and hotel rooms, while your property is getting repaired.
How much renters insurance coverage should I buy?
There is no set amount for everyone as it depends on the individual needs of the renters. You can determine the amount of coverage you should purchase by taking home inventory of the possessions and how much they are worth.
It is best to consult the receipts, but you can also use an estimate. To cover expensive jewelry and other high-value items, you can purchase add-on or supplemental renters insurance.
You will also have to determine the right type of property coverage you may need – replacement policy or actual cash value policy. The replacement value policy provides sufficient money for the policyholder to buy new items to replace the ones destroyed or damaged in the rental.
An actual cash value policy is cheaper than the replacement value policy and only reimburses the policyholder for the depreciated value of the possessions if they get destroyed or damaged.
How do I purchase renters insurance?
Buying renters insurance is easier than it seems. Here are the basic steps you have to follow:
- Determine the items you want to cover
- Decide the amount of coverage you need
- Select the right renters insurance company
- Consult the representative
- Select the policy to purchase
This article highlights the top renters insurance companies to help you decide the right one according to your needs. Your agent or representative will guide you throughout the process to make it easier for you.
Which renters insurance companies are the best?
This article thoroughly reviews the best renters insurance in the U.S., along with their key features and cons to help you decide.
What does renters insurance generally cover?
The items covered by renters insurance depends on the type of policy you purchase. Generally renters insurance covers:
- Belongings in the rental property, including musical instruments, sports equipment, towels and sheets, kitchen equipment, appliances, devices and electronics, clothing, furniture, and more
- Injuries sustained by a visitor in or on the rental property
- Damage caused by disasters, like water, windstorm, explosion, theft, vandalism, lightning, smoke, or fire.
- Additions expenses due to temporary displacement
If you have specialized needs or are living in a high-risk area, you should consider add-ons, like:
- Business property insurance
- Excess liability insurance
- Rider policies for collectibles, art, or fine jewelry
- Earthquake insurance
- Flood insurance
Buying renters insurance protects you from damages caused by annoyances and accidents, ensuring that your budget isn’t harmed due to disasters.
The landlord insurance only covers the house or building and not your belongings, which is why it is essential to purchase renters insurance. Hopefully, the information in this article will help you find the best renters insurance company, depending on your needs and requirements.