Just as home owners need homeowners insurance, renters need renters insurance. It's important that you shop and compare renters' insurance policies and find the one that offers the best prices policy for the best price. To compare renters rates quickly, use our online form located here.
There's no question that renters insurance policies can be as confusing as any other insurance policy. It's important that you understand what the policy is actually saying so that you can make a knowledgeable decision about which is the right policy for you.
It's important that you understand what your policy contains as well as the variables that can reduce the cost of your policy or add a few dollars. When your done here, you'll be able to ask the right questions to ensure you get the best coverage, whether your home is a house, a town home, a condo, or an apartment.
So how do you go about comparing renters insurance policies? Glad you asked. It's best to compare two policies at a time. Your less likely to miss anything if you're comparing two at a time. Here are some tips on what to compare:
Deductibles
As with other insurances, the higher your deductible the lower your premium, so when you are comparing policies make sure that both have the same deductible. Deductibles range from $250 to $1000. You want to choose the deductible that fits your needs. Always choose a deductible you are sure to be able to make, because your insurance company will not begin to payout on a claim until you've paid your deductible.
Discounts
Multi-Policy Discounts - Many insurance companies will offer a discount if they have more than one of your insurance policies. If you have auto insurance, see what the insurance company will offer you as a discount on your renters insurance. Insurance companies use it as a way to bring new business in.
Safety Discounts - Safety discounts are a good way to save some money on your premiums. Something as simple as a deadbolt can earn you a small discount, and a full security alarm or fire alarm can save you much more.
Replacement Cost Vs. Actual Cash Value
There seems to be a great deal of confusion between replacement cost and actual cash value, so let's see if we can clear things up.
Most rental policies default to actual cash value of your property less the assigned depreciation. What does this mean? Well, let's use a stereo as an example. Let's say you paid $2000 for your stereo 5 years ago. Today it might be worth only $500 and with an actual cash value policy that's all you would get.
If you sat down and made a list of all your major items and then listed the actual cash value and the replacement cost you'd see that many times there's a big difference! Replacement policies will reimburse you what it would cost to replace that item today. Let's look at the stereo example again. Your $2000 stereo might actually cost $3000 to buy a comparable unit today, or it might cost $1000, but what you are guaranteed is a new replaced unit.
Not all insurance companies offer replacement coverage up front. You may have to ask for a rider to be added to your quote. Replacement cost insurance many times is worth the extra cost, especially if you have plenty of electronics or similar items that depreciate quickly.
Valuable Items
If you've ever taken the time to read an insurance policy in detail like you're supposed to, you already know that many valuable items have a maximum value that the insurance company will pay out for. Computer equipment, stereo equipment, jewelry, and antiques generally have a $1000 maximum coverage on them. This could leave you out a significant amount of money if there was a claim.
Ask your agents to add a rider that includes coverage for valuable items and make sure you have documented your inventory of these items in the event of a claim. You can buy a rider to add additional coverage. Ask your agent.
Liability
Homeowner insurance has liability coverage of $300,000 included, whereas rental insurance almost always has only a $100,000 included. If the quotes you receive are for $100,000 liability you should consider increasing the amount since that's really not offering you much protection in today's economy. And liability insurance is relatively cheap. Worth every penny!
Liability insurance protects you if there is an accidental injury that you are responsible for. It can also protect you from lawsuits and medical costs that are a result of an accident you are responsible for.
As a renter peace of mind is just as important as for the homeowner. The only difference between the two is that the homeowner is also worried about protecting the building. When you have your two quotes sit down and compare using this as a reference.
Don't you want peace of mind? Then why wait another day to obtain renter insurance quotes and use our online form to compare up to 5 rates quickly.
Published: Wednesday 11th March 2009
