What Are the Most Important Features to Consider Before Purchasing Renter’s Insurance?

There are many features to consider before purchasing renter’s insurance. Renter’s insurance is vital because it’s the main, and often the only, coverage a person or family may have to protect them. Property owners usually carry insurance on the property but do not cover the tenant’s personal property. This responsibility falls on the renter’s shoulders, therefore, here are some things to consider before buying a renter’s policy.

What Renter’s Insurance is All About

Renter’s insurance is a type of insurance that’s available to people who rent their home rather than own it. It offers protection for personal property lost or damaged from the following perils.

  • Fire
  • Lightning
  • Storms
  • Water damage
  • Theft
  • Vandalism
  • Smoke

What Renter’s Insurance Covers

The type of insurance policy and the coverage it provides may vary from one company to the next. Most renter’s insurance offers the following coverage.

  • Personal property – This offers coverage against the things the renter owns in the home such as clothing, furniture, electronics, appliances, etc. It typically doesn’t provide coverage against valuable items such as expensive jewelry, guns or antiques unless they’re listed under an additional policy.
  • Temporary living expenses – This helps pay for the renter to live elsewhere while their rented home is being repaired or replaced.
  • Personal liability – This provides protection against lawsuits stemming from visitors being injured in the renter’s home.
  • Medical bills – This pays the medical expenses of guests that are injured in the renter’s home and require medical care.

What is the Cost?

With the cost of auto and health insurance so expensive today, many people are insurance-shy because they feel they just can’t afford any more insurance bills. Renter’s insurance is among the most affordable of insurance products according to U.S. News & World Report, especially when you consider what it all covers. Unlike other types of insurances, renter’s insurance may be as cheap as $15 to $25 per month.

Many renters believe they don’t have anything of value worth insuring. Unfortunately, they don’t often realize the value of their possessions until they suffer a loss and have to replace everything. The amount of the premium varies by the type and amount of coverage they choose. Insurance companies also offer multiple-policy discounts if the customer carries more than one insurance policy with them.

What Company to Choose

Renter’s insurance is only as good as the company providing the insurance coverage. Before buying a renter’s insurance policy, individuals should do their homework and learn as much as possible about the company. Whether it’s word of mouth or online reviews, there are ways a renter can get information on an insurance company. When choosing an insurance company, renters should keep these factors in mind.

  • What type of customer service do they offer? Is it 24/7?
  • Are they a local company?
  • Are they are a known and reputable company?
  • Do they offer all the types of coverage renters typically use?
  • How competitive are their rates?
  • How quickly do they handle claims?

Related Resource: 10 Best Cheap Health Insurance Companies

With the high cost of living today, the importance of renter’s insurance cannot be overemphasized. Having the right kind and amount of renter’s insurance can be as important as actually having the insurance. Knowing what’s important and what isn’t can make all the difference towards keeping renter’s adequately protected against losing their valuable property.