Renters Insurance for Cheap

Renters, people who rent their home, need insurance on their dwelling more than homeowners because of the circumstances of being renters.

Their need for insurance is, if anything, more than that of individuals who own the building in which they live because renters lack the control of environment that exists when a home is owned.

Individuals who own their home are securing the investment they have in the property, but those who rent are protecting their security and interest in a safe place to live.

A home insurance policy can insure that you have the ability to temporarily locate another place to live, furniture, clothing, and the possessions needed to maintain life for you and your family.

Unfortunately, individuals who rent usually have less disposable income to spend on premiums for insurance. Finding an inexpensive place to purchase renters insurance is vital. To do this, you must examine insurance companies, choosing at least three viable markets for quotations.

Be sure to compare rates using the FREE search tool at the top of this page!

Choosing an Insurance Company

cheap renters insuranceSelect an insurance company by the following methods:

  • Ask friends, neighbors, and co-workers about insurance companies and their experience with them to obtain recommendations.
  • Contact your state’s insurance website to examine licensed insurance companies and complaints against them- this will help determine the reliability of insurance companies.
  • Examine one or more of the following sites to determine the financial stability and any complaints against insurance companies: 1) National Association of Insurance Commissioners (NAIC) or 2) A.M. Best, an insurance rating firm. Financial stability of the insurance company is important to be certain they will be around for the long run.

Amount of Insurance You Should Purchase

Since you will not be insuring the building, you need to assess the amount of insurance you need to purchase. The best way to do that is to complete an inventory form, listing the contents of your apartment or dwelling in full.

At the same time you do the inventory, rent a camera to take a video of your property. A video will help you establish ownership and condition of your property.

Be sure that the amount of coverage includes valuable items of jewelry, antiques, as well as specialized equipment.

Replacement Cost or Actual Cash Value?

It may cost more to replace your property than you paid for it originally. If so, you need to insure your property for replacement cost to make certain it is replaced with no deduction for depreciation. Actual cash value will pay for the current value of the property.

Coverage Provided Under a Renter’s Policy

A renter’s policy covers the following usual perils: fire, smoke damage (in case the next apartment burns and smoke damages your property), lightning, explosion, civil unrest, theft, vandalism, freezing-rupturing-sudden accidental overflow of heating and plumbing systems as well as household appliances. Note that earthquake and flood coverage are not included on a renters policy.

If you are unable to live in your home due to an insured peril, the insurance company will provide living expenses to maintain your standard of living within the policy limits.

This, in addition to paying for the contents of your residence, will allow you and your family to be protected in the event of a loss.

Business in Your Home

Computers and laptops used for business may be covered under this policy but be sure that your property limits will extend to that if it is lost, stolen, or damaged –even away from home. Make sure your company is aware of this business use. Daycares are not covered under the liability coverage provided by this insurance.

Personal liability coverage, usually for $100,000, is a part of the liability coverage purchased in this policy. This liability coverage follows the individual and family as they move in the community. Medical payments coverage may be purchased to pay for accidents that occur on the premises of your apartment or place of residence.

Note that medical payments coverage does not require legal liability on your part to be paid. An example of when this coverage is valuable may be if someone is injured in your household from tripping over the dog or some such accident.

Deductibles

A deductible can reduce the amount of premium, which you pay. At deductible of $500 can prevent relatively small claims, reduce your premium, but allow you to purchase the coverage you need. Consider carefully the amount of your deductible; weighing it against the amount of premium you will save.

Saving Money on Renter’s Insurance

renters insurance for cheapRenter’s insurance for $30,000 may cost you $15 a month on average. The premiums can be reduced with the following strategies:

  • Compare quotations with at least three different insurers.
  • Choose a deductible that will give credit
  • Purchase automobile and renters insurance from the same insurance company – this can reduce your premiums
  • Ask your agent about credits offered by particular insurance companies
  • Protection devices such as specialized locks, smoke detectors, alarm systems
  • Maintaining a good credit record – insurance companies examine credit histories and apply a formula to classify the rates they charge.

Common Questions about Renters Insurance

  • Does renters insurance pay for my roommate’s property, too? No, each roommate needs to purchase his or her own insurance policy to protect him or her.
  • What if I am in college? Check with your insurance company because your parents’ insurance may cover your interests as one of their dependents.

Renter’s Insurance

It is easy to skip another expense in your budget when it comes to renters insurance. Not carrying this type of insurance can put you and your family at risk. Often we hear of people whose homes have burned or been seriously vandalized and end up living in a shelter afterward.

Purchasing a renter’s policy can ultimately save you a considerable amount of money in living costs and replacement of your property after a loss.

Consider purchasing this type of insurance to care for your interests in the safety and security of your home, yourself, and your family. The insurance is well worth the premium, small though it is, to purchase this protection.

Use the FREE comparison tool below to start your search for home insurance!