How to Pick the Right Renters Insurance

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Nov 10, 2022

Renters insurance can be your savior in case of unfortunate circumstances. The coverage can differ from provider to provider, but in most cases, it can cover personal properties, temporary living expenses, personal liability, and medical payments. As such, it can provide peace of mind and a financial shield.

Choosing renters insurance, however, can be overwhelming. Even if the choices abound, it does not mean that you can pick any policy. Read on and we’ll share some of the most important considerations to help you make a well-informed choice.

Low-angle photo of an apartment building with balcony

Tips for Choosing Renters Insurance

Whether you are renting your first apartment or leasing a property that has already been with you for years, you might want to consider getting renters insurance. If you are clueless about how to pick one, these things can help:

Find a Price That Suits Your Budget

Cost is a primary consideration for most people looking for renters insurance. A lot may want to have comprehensive coverage, but unfortunately, for some people, the premium might be too high. Find renters insurance that perfectly balances what you need and what you can afford.

So, how much does renters insurance cost? The price can vary from provider to provider. More so, the specific inclusions or coverage can also affect the price. On average, it can cost anywhere from $15 to $30 or $180 to $360 annually. You might qualify for discounts, such as by bundling it with other insurance policies.

Research the Coverage

Being an educated buyer can help ensure the best bang for the buck when buying renters insurance. Knowing the inclusions will help you weigh if the premium is worth it or if you should look for other alternatives. More importantly, it can spare you from a nightmare since you will know what is covered and what isn’t.

While it can differ across providers, renter’s insurance can provide three coverage types:

  • Personal Possessions: As the name implies, it covers personal possessions inside the rented property, in case of fire, theft, and similar unfortunate circumstances.
  • Liability Protection: Lawsuits can confront renters for property damage and bodily injuries that you, your family, and even your pets can cause. This coverage can provide legal assistance for paying court fees.
  • Additional Living Expenses: When the property you are renting is under repair, this coverage can pay for your hotel expenses, restaurant meals, and temporary rentals, among other associated costs.

Meanwhile, you should also know the things that the renter’s insurance does not cover. For instance, it does not cover the structure or building, which the landlord’s insurance covers instead. It also does not include pet damage, such as when your dog chews your carpet. More so, it will not cover losses from acts of God, including floods and earthquakes.

Determine How Much Coverage You Need

Aside from knowing the types of coverage, you should also find out how much you need. It isn’t a simple guessing game. One thing you should do is conduct a home inventory. List the description of the items you have in a rented property, the estimated value, date of purchase, and receipt numbers, if available. Doing so can also help speed up claims.

More so, consider your liability exposure to determine the necessary insurance value. For instance, if you have a pet that is likely to bite someone inside your property, a lawsuit can confront you, so you need coverage enough to cover the legal fees.

Look for Ways to Save Money

Moving into your first apartment can be costly. From hiring a mover to buying new appliances you need, the costs can add up. Hence, some might be hesitant in buying a renter’s insurance. Nonetheless, given its benefits, the costs might be worth it. If you think it’s expensive, look for ways to save money.

Adding safety features to your rented property, such as anti-theft alarms, can also help you qualify for a lower rate. But before doing so, make sure to ask permission from the landlord, especially if it requires significant alterations to the property.

Another potential way to lower the cost of renter’s insurance is bundling with auto insurance. Many providers offer lower premiums if you bundle renters and auto insurance. This way, you can also simplify the process of buying insurance since you are doing so only from one company.

Finding low-cost auto insurance is especially important when you have an SR-22 certificate, which is issued when you want to reinstate your license. SR-22 certificate holders spend more on car insurance than the average driver, but you can get a free quote at Cheap Insurance, which can save you a bit of cash.

In Closing

Miniature house and real key on a wooden surface

If you are renting or leasing a property, you might want to consider renter’s insurance. The coverage can vary between companies, but in most cases, it can cover damages to personal possessions inside the property in case of theft or fire but not floods and earthquakes. It can also provide legal assistance. Take the time to evaluate insurers to find the right coverage for your needs at a price that suits your finances.

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