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Whether you’re renting an apartment, a condo, or a house, renters insurance is a must Renters insurance can protect your personal belongings and yourself in three different ways: personal property, liability and excess living expenses.
While you may think this is an expensive addition to your budget, insurers like Lemonade have policies that start at just $5 a month. In this article, we’ll discuss the cost of renters insurance, the different types of coverage available, and the benefits of buying renters insurance. We also offer 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 rental insurance in 2023.
Why get renters insurance in the first place?
Renters insurance is a wise investment for anyone renting a house or apartment — and your landlord may require it, too. It protects you and your belongings from unexpected financial losses due to incidents like fire, theft or vandalism.
Renters insurance can help you recover some of the costs to replace your furniture, clothing, electronics, appliances and more if they are lost or damaged. Many policies provide additional liability protection in the event of a lawsuit. It can cover personal liability and medical expenses if someone is injured in your rental home.
By investing in renters insurance, you can rest easy knowing that you and your belongings are protected in the event of an unexpected emergency.
6 Tips on How to Get Renter’s Insurance
Renters insurance is essential to protect your belongings if you rent a house 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 price.
Table of Contents
1. Learn about renters insurance coverage
What is renters insurance and what does it provide? Renters insurance provides coverage for tenants living in rental accommodation such as an apartment, a condominium or a house. A rental insurance policy typically covers your personal property and liability protection in the event of loss or damage due to accidents, theft or vandalism. Some insurers, such as Lemonade, will even cover theft of your property outside your home.
How much does renter’s insurance cost? When purchasing a renters insurance policy, you will choose a coverage limit that reflects the value of your property and pay your insurance company a monthly rent insurance premium. Your premium is the amount you pay on a monthly or annual basis. Premiums vary from provider to provider and are based on factors such as:
- The type and amount of coverage you choose
- The type of home you want to insure (an apartment, a condo, etc.)
- your location
As long as you continue to pay your premiums, 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 by your policy. If so, the insurance company will pay you for your loss up to your coverage limit.
You should also familiarize yourself with the types of coverage your policy provides. Renter’s insurance typically covers damage from:
- the fire
- Smoke damage
- Water pollution
- Some natural disasters
- Damage or destruction due to improperly maintained accommodation
Depending on the policy, renters insurance may provide usage loss coverage and coverage for additional living expenses (ALE). Loss of use coverage pays for temporary housing, meals and other expenses if you are unable to live in the damaged residence.
Similarly, ALE coverage compensates you for extra expenses, such as gas for long commutes or restaurant meals, if your rental home is damaged or destroyed and you have to stay in a hotel.
Consider what each policy covers and know the limits of what it does not cover. Overall, understanding the terminology and details of rental insurance will help you decide if a policy is within your budget and adequate for your needs.
2. Make an inventory of your personal possessions
To find out how much renter’s insurance coverage you need, start by making an inventory of your personal possessions, including the actual value of each item. Include all your valuables, such as furniture, clothing, jewelry, electronics, and other valuables.
Personal items typically covered by renters insurance include:
- musical instruments
Avoid depreciating items. If you undervalue your assets and don’t buy enough insurance coverage, you won’t be able to replace everything by paying claims if you need to.
Keep a digital copy of your list – this reduces the risk of it being lost or stolen. Email a copy to yourself or save to cloud storage for easy access. You can include photographs of the insured items and proof of purchase, such as receipts or credit card statements.
3. Figure out how much coverage you need
Once you have an inventory of all your valuables, calculate the estimated value of your property and use that to determine the amount of renters insurance coverage you need.
Remember that in addition to insuring the value of your property, many renters insurance policies also offer liability coverage. Liability coverage is helpful in the event of an accident, such as a pet biting a guest. In that case, liability coverage will help cover the cost of medical bills and other related expenses. Liability coverage can also help with damage to your property, 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 inventory of your valuable assets and potential liability risks to ensure you are purchasing the right coverage.
4. Research renters insurance providers
There are many rental insurance providers out there, so it’s a good idea to evaluate at least three companies and compare their offerings. Make a list of pros and cons for each rental insurance company and the policies they offer
Next, consider bundling discounts. Many insurance providers offer discounts if you buy more than one policy from them. For example, you may be able to save money if you purchase your car insurance and your renter’s insurance from the same provider.
Finally, don’t be afraid to ask questions. If you don’t understand something or have concerns, don’t hesitate to contact the insurance broker or agent for the company you’re considering. They can answer your questions so you can make an informed decision.
5. Compare rental insurance companies
When comparing renters insurance companies, consider factors such as:
- Coverage Terms
- Coverage limits
- Discounts available
- Customer service
- Financial stability of the company
Consider the type of coverage each company offers, including:
- Property damage coveragewhich covers damage to your rented property caused by an insured event.
- Personal liability coverage Protects you from liability for certain types of damages or accidents that occur to other people or to your rental property.
- Additional living expenses coveragewhich covers expenses related to temporary relocation due to loss caused by an insured event
Evaluate each policy’s coverage limits and premium costs, as well as the discounts each company offers. Many renters insurance companies offer discounts for certain customers, such as students, seniors, or military personnel. Knowing what discounts are available can save you money on your premiums.
Consider each company’s customer service, including the availability of customer service representatives and the quality of support they provide. Do your homework and check other customer reviews on third-party websites such as Consumer Affairs, TrustPilot and the Better Business Bureau.
Additionally, take into account the financial stability of each provider. An insurance company’s financial stability is an important indicator of how likely the company will be to pay potential claims. It can also affect an insurance company’s ability to grow financially and offer competitive rates.
Poor financial health can indicate that an insurance company is more likely to experience problems and may be unable to get customers the coverage they need. You can find reviews of insurance companies’ financial stability on websites such as Standard & Poor’s, AM Best and Moody’s.
When looking at customer reviews and researching financial stability, don’t just look at the company’s website. Take advantage of resources like the Better Business Bureau and third-party reviewers. These sites can help you make an informed decision.
By considering these factors, you can easily compare renters insurance companies and determine which one best suits your needs.
6. Choose the best policy for you
Choosing a renters insurance policy is an important decision. Do your research and shop around to make sure you get the best coverage for the best price.
When you find a company that interests you, ask for a quote to see what type of coverage you qualify for and how much it might cost. Many renters insurance providers let you get a free quote easily on their website, although some may require you to speak with an agent. Providers may ask for personal information such as your driver’s license to confirm your identity or your car registration to verify the amount of coverage required in case of damage to your car at your car rental property. Make sure these documents are ready to avoid any delays.
You don’t have to settle if you’re not happy with the quote you’re offered. Don’t be afraid to keep searching until you find something that works for you.
Finally, be sure to read the fine print of any policy you’re considering before signing. Make sure you understand all the terms of your coverage.
Summary of Finance’s guide to how to get rental insurance
Renters insurance is essential for anyone living in a rental property. To get the best coverage for your needs, start by making an inventory of your personal possessions and ask your landlord about any coverage they may offer. If you decide to purchase private renter’s insurance, keep in mind:
- Research different coverage options
- Compare providers and policies
- Ask about any available discounts
If you do your research, you can select the best policy for your needs and rest assured that you and your property are protected in an emergency.