* Content includes branded mentions of our sponsor Lemonade.
Whether you rent an apartment, condo, or house, renters insurance is a must. Renters insurance can protect your personal property and yourself in three different ways: personal property, liability and additional living expenses.
While you might think it’s just an expensive extra in your budget, insurance companies like Lemonade have policies starting at just $5 a month. In this article, we discuss the cost of renters insurance, the different types of coverage available and the benefits of purchasing renters insurance. We also provide advice on shopping for the best policy and how to get the right coverage for your needs. Keep reading to learn how to get the best renters insurance in 2023.
Why Get Renters Insurance in the First Place?
Renters insurance is a wise investment for anyone who rents a home or apartment — and a landlord may require it, too. It protects you and your property from unexpected financial losses due to events such as fire, theft or vandalism.
Renters insurance can help you recover some of the costs of replacing furniture, clothing, electronics, appliances, etc. if lost or damaged. Many policies also provide additional liability protection in the event of a lawsuit. This can cover personal liability and medical expenses if someone in your rental home is injured.
By investing in renters insurance, you can rest assured knowing that you and your property are protected in the event of an unforeseen emergency.
6 tips on how to get renters insurance
Renters insurance is vital to protecting your property if you are renting a home or apartment. But how do you get renters insurance? From researching companies to understanding the coverage options available, these tips will help you find the right renters insurance at the best rate.
1. Learn about renters insurance coverage
What is renters insurance and what does it offer? Renters insurance provides coverage for renters who live in rented accommodation such as an apartment, condominium, or house. A renters insurance policy will usually cover your personal belongings and liability protection in the event of loss or damage due to accident, theft or vandalism. Some insurance companies, such as Lemonade, will cover theft of your belongings outside your home.
How much does renters insurance cost? When you purchase a renters insurance policy, you will choose a coverage limit that reflects the value of your property and pay a monthly rental insurance premium to your insurance company. Your premium is the amount you pay on a monthly or yearly basis. Premiums vary from provider to provider and are based on factors such as:
- The type and amount of coverage you select
- The type of home you want to insure (apartment, condo, etc.)
- your location
As long as you continue to pay your premium, you can report any covered loss by filing a claim with your insurance company. The insurance company will review the claim and determine if it is covered under your policy. If this is the case, the insurance company will reimburse you for your losses up to your coverage limit.
You should also be aware of the types of coverage your policy provides. Renters insurance usually covers losses from:
- Smoke damage
- Water damage
- certain natural disasters
- Damage or destruction caused by improperly maintained housing
Depending on the policy, renters insurance may also provide coverage against loss of use and coverage for additional living expenses (ALE). Loss of use coverage covers the costs of temporary housing, meals and other expenses if you cannot live in the damaged dwelling.
Likewise, ALE coverage compensates you for additional expenses, such as fuel for a longer commute or meals at restaurants, if your rental home is damaged or destroyed and you have to stay in a hotel.
Consider what each document covers and know the limits of what it does not. In general, understanding the terms and details of renters insurance will help you determine if the policy is within your budget and sufficient for your needs.
2. Make a list of your personal belongings
To find out how much renters insurance coverage you need, start by making a list of your personal belongings, along with the actual value of each item. Include all of your valuable assets, such as furniture, clothing, jewelry, electronics, and other valuables.
Personal items typically covered by renters insurance include:
- artistic work
- musical instruments
Avoid underestimating the value of items. If you undervalue your property and don’t buy enough insurance coverage, you won’t be able to replace everything with a payout if you need to.
Keep a digital copy of your list – this reduces the risk of it being lost or stolen. Email you a copy or save it to cloud storage for easy access. You can also include photos of insured items and proof of purchase, such as receipts or credit card statements.
3. Find out how much coverage you need
Once you have a list of all your valuable possessions, calculate the approximate value of your possessions and use that to determine how much renters insurance coverage you need.
Remember that apart from insuring the value of your property, many renters insurance policies also offer liability coverage. Liability coverage is useful in the event of an accident, such as a pet biting a guest. In this case, liability coverage will help cover the cost of medical bills and other related expenses. Liability coverage can also help if property damage occurs, such as if you throw a ball and accidentally break a neighbor’s window.
Consider all of your coverage needs when purchasing renters insurance. Take the time to make an accurate list of your valuables and any potential liability risks to ensure you purchase the correct coverage.
4. Find rental insurance providers
There are many providers of rental insurance, so it’s a good idea to evaluate at least three companies and compare their offerings. Make a list of the pros and cons of each renters insurance company and the policies they offer.
Next, consider bundling discounts. Many insurance providers offer discounts if you buy multiple policies from them. For example, you may be able to save money if you purchase your car insurance and renters insurance from the same provider.
Finally, don’t be afraid to ask questions. If you do not understand something or have concerns, do not hesitate to contact an insurance broker or agent for any company you are considering. They can answer your questions so you can make an informed decision.
5. Compare renters insurance companies
When comparing renters insurance companies, consider factors such as:
- coverage terms
- coverage limits
- Discounts available
- Customer service
- The company’s financial stability
Consider the types of coverage each company offers, including:
- Property damage coveragewhich covers damage to your rental property caused by an insured event.
- Personal liability coverage It protects you from being liable for certain types of damage or accidents that happen to other people or to your rental property.
- Cover additional living expenseswhich covers costs associated with having to move temporarily due to damages caused by an insured event.
Evaluate each policy’s coverage limits and premium costs, as well as the discounts offered by each company. Many renters insurance companies offer discounts for select customers, such as students, seniors, or military personnel. Knowing what discounts are available can save you money on your premium.
Consider each company’s customer service, including the availability of customer service representatives and the quality of assistance they provide. Do your homework and look at reviews from other customers on third-party sites like ConsumerAffairs, Trustpilot, and the Better Business Bureau.
Additionally, consider each provider’s financial stability. The financial stability of an insurance company is an important indicator of how likely it is that the company will be able to pay claims. It can also affect the insurance company’s ability to grow financially and offer competitive rates.
Poor financial condition may indicate that the insurance company is likely to encounter difficulties and may result in customers not being able to obtain the coverage they need. You can find reviews about an insurance company’s financial stability on websites such as Standard & Poor’s, AM Best, and Moody’s.
When looking at customer reviews and looking for financial stability, don’t just look at the company’s website. Take advantage of resources such as best lists and third-party auditors such as the Better Business Bureau. These sites can help you make an informed decision.
By looking at these factors, you can easily compare renters insurance companies and determine the best fit for your needs.
6. Select the best policy for you
Choosing a renters insurance policy is an important decision. Do your research and shop around to ensure you get the best coverage at the best price.
When you find a company you are interested in, request a quote to see what type of coverage you qualify for and how much it will likely cost. Many renters insurance providers let you easily get a free quote on their website, although some may require you to speak to an agent. Providers may ask for personal information such as your driver’s license to confirm your identity or your vehicle registration to verify the amount of coverage required in the event of damage to your vehicle on rental property. Make sure you have these documents ready to avoid any delays.
You do not have to settle if you are not satisfied with your quote. Don’t be afraid to keep searching until you find something that works for you.
Finally, don’t forget to read the fine print of any policy you’re considering before you sign. Make sure you understand all of the terms and conditions of your coverage.
Summary money guide to how to get renters insurance
Renters insurance is essential for anyone who lives in a rental property. To get the best coverage for your needs, start by making a list of your personal belongings, and ask the landlord about any coverage they might offer. If you decide to purchase personal renters insurance, remember the following:
- Look for different coverage options
- Compare providers and policies
- Ask about any discounts available
If you do your research, you can choose the best policy for your needs and ensure that you and your property are protected in an emergency.