best renters insurance
A lot of what we have is so important that it requires protection.
For instance, we need to have insurance on our cars, our house, our boats and even properties that we’re renting from someone else.
There’s a lot of questions when it comes to renters insurance, like:
We want to make sure you have a full understanding of what renters insurance is and the best insurance companies out there.
So we’ve answered all the above questions and more in this article for you.
We’ll cover:
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Renters insurance protects renters from financial loss in case of an unexpected event.
These unexpected events could be things like fire, theft, vandalism, and even injury on the property. Renters insurance will also pay for the costs associated with your relocation due to a disaster.
Most people are under the impression that it’s the landlord’s responsibility to pay for your property if something were to happen. But the reality is that your landlord’s homeowner’s insurance just protects the building you live in.
Your landlord’s insurance will take care of any structural damage to the building itself. But, it will not cover your personal belongings.
It’s up to you to make sure you have the proper insurance to cover your things.
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Anyone renting an apartment or a house needs renters insurance.
Besides your standard apartment living, what other people should consider renters insurance?
In other words anyone who does not carry a homeowner’s insurance policy or isn’t covered by another policy.
Think about it…
Can you even imagine how much money you would need to replace everything?
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The first thing to do is determine how much coverage you’ll need your policy to have.
It’s important to come up with an accurate number as this is the amount you’ll have to replace your possessions if they are lost.
If you don’t pick the appropriate amount of coverage, you could find yourself not being able to replace everything that’s lost.
If you don’t know how much coverage you’ll need, there are online calculators provided on most insurance company’s websites. Tools like these will help you estimate the total cost of your personal items.
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Renters insurance will cover your insurance perils.
So, what are insurance perils?
A peril is whatever causes a loss. The most common perils included in renters insurance are fire, theft, vandalism, water damage, lightning and smoke damage.
Here’s An Example:
Let’s say that you live in an area that is susceptible to lightning strikes. You’ll want to verify that lightning is covered under the perils listed in your insurance policy. If it’s not currently included, make sure you get it amended to have it.
Among the coverage that you can get under these policies you will find the following:
Personal property coverage is what covers everything you have inside of the property your’e renting.
To get an accurate figure for your possessions, walk through your house and take a look at everything you own. You’ll need to add up how much it’ll cost to replace it all.
Make sure you include furniture, clothing, appliances, jewelry, etc. in your final number.
You have absolutely no control over events like a fire, theft, vandalism, tornado, hurricane, explosions, etc. It’s scary just to think about losing everything and not having enough to replace it.
This is why renters insurance is so important.
When you place a claim, there are 2 ways for the insurance company to reimburse you.
The first way is called Replacement Cost. If you go this route, the insurance company will reimburse the cost of replacing your items with new ones.
The second option is called Actual Cash Value. By doing it this way, the insurance company will reimburse the cost of replacing your things minus depreciation. Simply, you’ll be recouping the current value of your possessions, not their original price.
So if you bought a couch for $1,500 3 years ago, you won’t receive that amount back. Instead, you’ll get the depreciated value that the insurance company puts on the item.
It’s recommended that you look for a policy that will give you the Replacement Cost. This will guarantee that you’ll be able to replace your things that are lost.
Renters insurance will pay for the medical bills of any guest that is injured in your residence, even if you were not the cause of injury. They’ll cover things like doctor fees, hospitalizations, blood-work, and x-rays.
Keep in mind that you need to verify the limits listed in your policy. Some policies will have a limit of just $1,000 to cover medical bills.
In most cases, this will not be enough and any additional bills are left up to you. So make sure your medical payment coverage has a limit you’re comfortable with.
Renters insurance will cover the cost of your accommodations if your residence becomes uninhabitable due to an unforeseen event.
This includes expenses like hotel room and food while you get back on your feet.
Extended Coverage is for your belongings that are especially valuable. This could be a collection- like stamps or coins, as well as any piece of expensive jewelry.
If you have something that is extremely valuable, you should verify if the insurance company you’re looking into will provide extended coverage for the item.
After you find out how much you need to insure everything for, you need to find out how much it’ll cost you.
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Based on the National Association of Insurance Commissioners the average renters insurance policy is around the $190 a year.
But it’s really going to depend on your location. Obviously, big cities like New York will be more expensive than a rural town in Mississippi.
Overall, renters insurance is not an expensive product based on all the benefits it has.
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Several factors can have an influence in the cost of your renters insurance premium.
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The most efficient renter insurance companies will provide an online quoting tool on their website.
This will hep you determine how much you’ll end up paying on a monthly basis.
Before you select a renters insurance policy, take the time to explore and compare quotes.
You may be surprised at how affordable of an option you find!
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There are different discounts available that’ll make your payment a little more comfortable for you.
Among these, you have the option of a bundle policy.
This is super easy to get!
Create a bundle by grouping your auto and renters insurance with the same company. By doing this, you’ll receive a discount anywhere from 15% all the way up to 30%.
Sounds good right?
Another discount you can get is called a claims free discount. This will become available to you if you have gone a certain period of time without filing a claim.
Yet another discount can be given to you just by installing special devices for protection. Examples of these devices are: security system, fire extinguisher, burglar alarm or smoke detectors.
This option does not promise a huge discount on its own, but when you combine it with the other discounts, you’ll be saving a pretty penny!
Now that you know how much coverage you’ll need, and how to get a price you’re comfortable with, let’s discuss some of the options that are out there.
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These are our top 7 picks for insurance companies to get a renters insurance policy with.
Click through and explore your options. Each of these sites will be able to provide you with an insurance quote to help you make the best decision.
These insurance companies have low monthly fees and competitive premium prices. You can easily get a quote online, and they all come with a limited number of complaints.
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Renters insurance is worth it because it helps protect your valuables.
Maybe you go to great lengths to be responsible and take care of your things. Why throw money at an insurance policy you’ll never use?
Some things are just beyond our control. Maybe you’re responsible, but can you trust your next door neighbor? His carelessness could be the reason your apartment catches fire.
By having renters insurance, you won’t have to worry about finding the money to replace your prized possessions if something were to happen.
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Take a minute to look around your house at everything you’d have to replace in case of unforeseen circumstances.
Believe me, it’s going to add up quick.
You don’t have control over unexpected events, but you do have control over the amount of protection you have against them.
Renters insurance will give you the peace of mind to know you’re protected in these situations.
Do you have renters insurance? Let us know in the comments!
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