5 Questions to Ask Before Purchasing Renter’s Insurance

Questions About Renter’s Insurance To Ask

  • Is It Required By The Landlord?
  • Will It Cover Roommates?
  • What Does It Cover?
  • What Are The Coverage Limits?
  • What Are The Payment Options?

It is good to know some questions to ask before purchasing renter’s insurance. Renter’s insurance can be an odd, confusing type of insurance so it is important for renters to understand what they are getting when they sign up. Here are five questions to ask and understand before buying insurance for renters.

Is It Required By The Landlord?

One of the first important questions to ask before purchasing renter’s insurance is whether it is required by the landlord. Many landlords require it but others do not. Even where it is not required, however, it is still advisable for all people who rent to carry this type of insurance. Know that the landlord’s insurance covers the building but will not usually protect tenants and their belongings. If renter’s insurance is required by a landlord, then it is important to determine if the landlord also requires any specific types of coverage or coverage limits.

Will It Cover Roommates?

Many renter’s insurance policies will not cover roommates, but it is important to know whether a policy will or won’t. Even if a policy covers roommates, it is usually best for each roommate to get his or her own renter’s coverage. If roommates choose to get a joint policy, Travelers confirms that each party needs to agree on the same level of coverage that combines the value of their belongings. These policies do usually cover family members, however, so it is important to ask and understand just who gains protective coverage under any given policy.

What Does It Cover?

As with any insurance policy, it is important to understand what it will and will not cover. Renter’s insurance actually covers quite a few areas. It covers personal possessions physically in the rental as well as outside against destruction and theft. It provides liability coverage if guests injure themselves or if the tenant’s dog bites someone. Renter’s insurance will also cover meals out and hotel stays in the event their living space is destroyed in a fire or other covered event. If an issue was the renter’s fault and damages the building or other units, renter’s insurance offers liability protection from such an event as well. Buyers can purchase riders for additional items that are not usually covered, such as flood or earthquake protection.

What Are The Coverage Limits?

Every insurance policy comes with coverage limits, or the amount of money the policy will reimburse the holder. Before buying any policy, shoppers should look at the coverage limits and understand how much coverage they need. An insurance agent can help determine this, but it is up to the renter to inventory all their possessions and determine a monetary value it would cost to replace them. Most policies are somewhat customizable and allow the buyer to choose between two, three or more different levels of coverage.

What Are The Payment Options?

Cost is of course always a significant factor in choosing an insurance policy and renter’s is no different. Renter’s insurance is a usually inexpensive form of insurance, giving even less reason not to carry it. Getting renter’s insurance through the same company where someone holds another policy, such as a car insurance policy, will likely get them a discount. It is also important to consider cost factors when adjusting coverage, deductible or premium levels. Typically, a lower deductible means a higher premium and vice versa. Renters can pay their premium by check through the mail or by credit card or bank withdrawal online. The option to pay an entire year’s premium upfront is usually available, as is the option to pay on a monthly basis or every six months.

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Renter’s insurance is required in some cases and a good buy for tenants in nearly all others. Be sure to remember these questions to ask before purchasing renter’s insurance.