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Protecting The Important Things With Cheap Renters Insurance
Your belongings can be what truly makes a rental a real home. They are the key pieces to making your space feel inviting and bright. And, naturally, when something is that precious, you want to protect it. That is where a renters insurance policy can come into play. Renters insurance offers you and your belongings coverage following an unexpected tragedy. Obtaining such valuable protection can also fit your budget. Affordable renters insurance is possible to find and offers you peace of mind in knowing what you hold near and dear to your heart is protected. Contact Insurance Navy Today to get a cheap renters insurance quote.
What is Renters Insurance?
Renters insurance is a type of policy that offers financial coverage if your personal belongings within your rented space get damaged or stolen. Some perils your insurance company protects your belongings from include theft and fires. Renters insurance will also assist you with expenses that may accumulate after someone gets hurt in your rental space. Expenses covered under this insurance include medical bills and court fees. It should also be noted that renters insurance is different from landlord insurance. Some renters may assume that their landlord’s insurance policy protects their rental entirely, but that is not the case. A landlord’s policy will only cover the structure of the building or home. What is inside is the tenant’s responsibility and why renters insurance exists.
Who Needs Renters Insurance?
Technically, no one is required to purchase renters insurance. Unlike auto insurance, there are no state laws mandating insurance policies for all renters. However, just because it is not required does not mean you should risk it. All renters should consider purchasing an affordable insurance policy. As touched on in the previous section, renters insurance protects your belongings in the event of unexpected tragedies. Insurance, in general, can be of very valuable service in times of crisis, and renters insurance is no exception to this. What you have stored in your space, whether it be an apartment or condo, needs to be as protected as your other belongings like your car is. All renters benefit from such a policy and should obtain one when they are beginning to look into renting.
What Happens When You Don’t Have a Renters Insurance Policy?
If you fail to purchase a renters insurance policy and have your possessions damaged or stolen, then you are just stuck paying out of pocket to replace them. If anything is stolen, you do have the choice to wait until your belongings are found, but there’s no guarantee you will ever see them again. More likely than not, you will simply have to repurchase everything that has been damaged. While it is possible to take this route and self-insure, it can get very pricey, very fast. By obtaining a renters insurance policy, you can make sure your valuables are covered without having to shell out a lot of cash. It will allow you to rest easier at night, knowing that your personal items are protected against a variety of perils. That alone should give you enough reason to look into policies on the market.
How Much Coverage Should You Have?
When you go to purchase renters insurance, you will have to decide on coverage limits. A renters insurance policy is made up of three categories: personal liability, property damage, and loss-of-use coverage. You can adjust your coverage limits on your renters policy as you see fit for your living circumstances.
Personal property protection should be one of your top priorities when you begin looking into purchasing a renters insurance policy. This is probably the most straightforward part of your plan, as your coverage limit is proportional to the value of your belongings. You should take an inventory of everything you own to get an idea of how much you would need to replace them. Your checklist should include things like furniture, clothing, and decorations. You should expect everything in your rental to need replacing in the event of a disaster. When it comes time to shop for a policy, you want one with coverage limits that exceed the value of your belongings. This will ensure that everything has a chance to be replaced following a disaster. Taking time to calculate your inventory is pretty crucial. You do not want to just estimate the worth of your possessions. That can leave you and your personal items underinsured.
The other aspect of renters insurance you will have to consider is liability coverage. Liability coverage will go towards covering medical and court expenses if someone gets injured in your rented space and decides to sue you. You need to look at your own financial situation to estimate how much liability coverage you will need. Consider things like if someone is injured, can you pay for their medical bills? Can you handle court and legal fees if they decide to sue? If you are unsure, consider increased liability coverage limits. Doing so will offer you better protection.
You will also need to consider how high or low you wish to set your policy deductible. A deductible is a set amount you agree to pay out of pocket following an insurance claim. You will have to pay this amount before your insurance provider steps in to cover the rest. Deductibles can range anywhere from $250 to $1,000. Whatever you set it at is how much you are promising to pay in the event of a peril. Your deductible will also influence your monthly premiums, but more on that will be explored in a later section.
What Types of Perils Does Renters Insurance Cover?
Renters coverage includes a number of different perils it will protect your belongings from. Listed below are the types of damages your renters policy will provide coverage for.
- Theft
- Water damage (if applicable)
- Fire/Smoke damage
- Hail or windstorm
- Lightning
- Explosion damage
- Vandalism
- Civil commotion
Keep in mind that renters insurance also includes liability coverage meaning you will be protected if someone ends up injured in your rental. It will cover medical expenses and any court or legal fees accumulated following an accident. Loss of use coverage is also under your renters insurance. This coverage will help with additional living expenses you have should your rental be inhabitable for a period of time.
What Does Renters Insurance Not Cover?
As with many other types of insurance, there are limits to the coverage it provides. There are both personal belongings and perils that will not be protected by your renters insurance policy.
In regards to perils, flood damage is generally excluded from policies. This refers to water damage that specifically comes from a source outside of your rented space. For example, if a nearby river overflows and damages your property, your insurance provider will not pay out to cover the damage. However, if a pipe bursts in your apartment, that type of water damage may be covered. But if you want to guarantee protection for your items against water, it would be in your best interest to look into flood insurance policies.
Another peril also excluded from renters policies is any planned or expected injury. Since renters insurance protects you against injuries another person sustains, if it is brought to your insurance provider’s attention that the accident did not actually happen accidentally, they will not payout.
When it comes to your property, any cars you have will be exempt from your renters insurance policy, even if they reside in an attached garage. Any aircraft and some watercraft will also not be covered by your renters policy. Business property may also not be covered by renters insurance. Coverage for business ventures could require something more along the lines of a business owner’s policy, depending on your circumstances. You should also keep in mind that expensive collections (like those of art or jewelry) may not be fully covered under renters insurance policies. You may need to increase coverage limits or purchase an umbrella policy in order for your insurer to pay out for high-priced items.
How Much Does Renters Insurance Cost?
When it comes to pricing, renters insurance is relatively cheap compared to other types of insurance. On average, renters pay around $15 a month. That comes out to be about $180 a year, but your rates could easily be below or above the average. Insurance premiums are determined by both personal factors and policy details. For example, setting a lower deductible will result in higher rates as your insurer will be responsible for paying more for a claim. Your apartment itself will also be taken into consideration when determining your insurance premiums. Where you live and the state of your apartment or rental are important factors for insurers to consider. Keep all of this in mind when you go about shopping for a policy.
How to Lower Your Renters Insurance Rates
Even though renters insurance is considered to be a low-cost type of insurance, you can still do things to get a discount on rates. Everyone wants to save money whenever they can, especially when it comes to insurance. Making adjustments to your policy or upgrading the safety features within your rented space can be very beneficial in the long run. Outlined below are some options you have for getting some discounts on your renters insurance premiums.
Shop Around
One of the best ways to lower insurance premiums is simply by shopping around. You should pull quotes and analyze policies from a variety of providers before signing with one. It is recommended that you look both locally and nationally as every company prices its policies differently. You need to be able to compare each quote and coverage limit in order to make the best-educated guess. Taking time to also talk to an insurance agent or broker can give even more insight into the various policies out there. You never know who has the best rates until you start putting plans and prices side-by-side.
Adjust Your Deductible
As mentioned previously, your insurance deductible will directly impact your rates. If you have a higher deductible, you are promising to pay more out of pocket for damage in a claim which means your insurance company will need to pay out less. This, in turn, lowers your rates. However, if you decide on a lower deductible, your rates will be a bit higher since you are relying more on your insurance provider. But your insurance premiums should not be the only factor you take into consideration when setting your deductible. You need to look at if you can actually pay the deductible amount in the event of an insurance claim. The lower monthly rates are appealing, but if you fall short following a claim, you could be in serious trouble. While this is a good way to catch a break on your insurance premiums, it does come with its own consequences.
Bundling
A pretty easy way to save a couple of dollars on your premiums is to bundle your renters insurance with another type of insurance you already pay for. Bundling means that you have multiple insurance policies under the same provider. This is most commonly done with auto insurance. Since you most likely already pay for coverage for your car under one company, you can purchase renters insurance with them, too. As a result of doing so, the provider will most likely give you a break on rates. Contacting an insurance agent can provide even more guidance for bundling your insurance, as the process can require an expert guide.
Improve Your Credit Score
Improving your credit score can greatly help your insurance premiums. This goes for any type of insurance you obtain. Many states allow insurance companies to obtain your credit score and take it into consideration when determining your rates. When you have a better credit score, insurance companies will see you as financially responsible. Those with high credit scores typically pay their bills on time and can manage their expenses well. Providers are happy to insure such a customer. But if you have a less than favorable credit score, your rates may be higher, and insurance providers will be leerier of you. Making sure you pay your bills when they are due and being responsible with your credit can help lower insurance premiums.
Install Safety Features
One of the best ways to lower your insurance rates is to improve the safety of your rented space. This would include installing safety devices like smoke alarms and a security system. When your place is considered safe by an insurance company, they will generally lower your premiums. A safe home is deemed less of an insurance risk, especially since renters insurance covers theft. With the installation of something like a security system or extra deadbolts, your provider will expect you to file fewer claims since the chance of theft greatly decreases with each precaution taken.