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Renter’s Insurance, What to Look For
There is a significant difference between renters insurance and landlord's insurance.
If you are a tenant, to protect yourself financially, you need renters or tenants insurance. Landlord's insurance is used to cover the cost of repairing a building in case of fire or any other damage.
Renters insurance has three types of financial protection, namely:
- Liability protection
- Coverage for personal possessions
- Additional living expenses
Regardless of the financial protection you are shopping for; it is essential to understand the basics of renters insurance. Ergo, when shopping or asking questions about renters insurance, here are frequently asked questions (FAQs) you should familiarize yourself with:
1. Coverage for Personal Possessions
This type of financial protection is vital because it protects you from fire, theft, etc. If you are looking for this type of financial protection, here are some things you should know:
- How much insurance should I buy for my apartment/home?
Your personal possession coverage should cover the cost of replacing all your belongings in case of fire, theft, or any other unforeseen disaster. To do it right, consider creating an inventory of your belongings along with an estimate of each item. It is easy to find an estimated cost of all your household items if you have a detailed inventory. 
- Choosing between replacement cost and actual cash value coverage
Actual cash value policies are available with a deduction for depreciation because items lose value with time. On the other hand, replacement cost coverage covers the cost of replacing your item whether it is stolen or destroyed. Although replacement cost coverage is higher, it is the better option because you will have your belongings replaced regardless of their age or condition.
- Disasters covered
It is crucial to know the disasters included in a renters insurance policy. Typically, the insurance covers losses from theft, fire, vandalism, smoke, explosion, windstorm, lightning, and some water damages such as burst pipe. Earthquakes and floods are some of the disasters not included in renters' insurance policy.
- What's my deductible, and how does it work?
Deductible refers to the total amount of money you are required to pay before your insurance coverage. For example, if your deductible is $300 and the total cost of electronics stolen is $1,000. You are required to pay the first $300 for the insurance company to pay $700. Remember, the larger the deductible, the lower the insurance premium.
- What is a 'floater?'
A floater refers to a separate insurance policy that provides coverage for valuable/costly items if stolen, lost, or damaged. For example, if you have expensive musical instruments, sports equipment, jewelry, and collectibles, you should include a floater in your insurance policy.
- Coverage when traveling or away from home
It is crucial to inquire whether your insurance policy offers off-premises coverage. If you have off-premises coverage, the items you carry away from home are covered. For example, if you traveled with your laptop and it was stolen from your hotel room or car, you will be compensated if the disaster is listed in your policy. Our Agency Can Help You Purchase the Right Amount of Insurance for Your Needs, Call Us Today!
2. Liability Protection
- What's liability insurance?
Liability insurance covers you against lawsuits for property damage or bodily harm caused by your family members, you, or your pets. Although your policy limit is checked, liability insurance can cover the cost of defending you in court. If your renter's policy has no-fault medical coverage, when a person is injured on your property can submit his medical bills to your insurance company. Your insurance company pays his bills, thus avoiding the need for the victim to file a lawsuit.
- Do I have enough liability protection?
To be safe, your liability insurance coverage should be enough to cover your financial & material assets in case you face a lawsuit.
- Is umbrella liability policy essential?
An umbrella liability policy is recommended if you need a larger amount of liability protection. Besides covering you for slander and libel, an umbrella liability policy comes into play when you reach the liability coverage limit provided by the auto policy or renters insurance. Don't be left under insured, allow our agency to cover your possesions the right way!
Discounts included in a renters insurance
Typically, insurance companies offer discounts to clients who have another policy with them. For example, if you have a business or car insurance with a particular insurance company, you can get a discount if the same company offers you renters insurance.
Although insurance discounts can vary depending on your state or insurance company, the following can help you get a renters insurance discount:
- Good credit
- Good security system
- Use the same insurer
- You are 55 years and above
When shopping for a renters insurance company, take your time to research the insurance policy to make the right choice. For first-timers, going to a broker may make the process easier, also don't hesitate to ask questions or get clarification before choosing the ideal insurance company. Get a FREE Quote Today! We can help you save money on your Rental Insurance!