What is renters insurance?
A renters insurance policy is an insurance policy designed to protect people who don’t own their home. It is very similar to a home insurance policy, only it typically has minimal dwelling coverage. Renters policies have 3 primary coverage’s.
- To protect a renters personal property from fire and theft.
- Most policies also cover personal liability to protect a guests medical bills if you’re found responsible for their injuries or from accidental damage to their property.
- Most policies also include additional living expenses. This is coverage to rent a place to stay if your residence is uninhabitable after a covered loss.
What does renters insurance cost?
It may be of surprise but the average renters policy costs between $15-$30 per month. The price you pay depends on several factors but the primary five include;
- How much personal property you wish to purchase – Most policies offer between 15,000 to 100,000 of personal property.
- Where you live – Every Zip code can have different prices
- Distance to a manned fire station – Typically less than 5 road miles will help your rates.
- Distance to a fire hydrant – Typically less than 1000 feet will help your rates.
- Your credit score – Yes your credit is a good indication of your likliness to file a renters claim. The better your score, the less you pay.
What does renters insurance cover?
Standard policies cover named perils – bad things that may happen to your stuff – including fire, lightning, windstorm, hail, smoke, vandalism, theft, freezing, damage from aircraft or vehicles, and riots. Some policies offer special perils for an additional premium. Special peril policies cover everythign unless specifically excluded in the policy.
Which renters insurance is the best?
Surprisingly most renters policies are very similar in coverage and price. The things to look for when determining which policy is the best for you include:
- Does it offer you a discount on your car insurance? If so it may offset some or all of the cost of the renters policy.
- What is the company AM Best rating? Look for A or better rating when determining financial strength of the insurance carrier.
- What is the special limits of the policy? Look for limitations to coverage’s such as theft of jewelry and firearms. Make sure the policy has enough for your situation, many times you may increase this limit for a nominal premium.
Is renters insurance required?
Many landlords do require renters insurance for liability purposes. They require you carry insurance in case you cause a fire or other accidental damage to their property.
Many renters mistakenly assume their landlord’s insurance policy will cover their personal items in the event of a loss, don’t let it happen to you!