How to Buy Renters Insurance

Renters insurance is simple to obtain, thanks in part to an increase in the number of reputable insurance companies in the industry. You can obtain coverage at any time, and it will take effect immediately.

Wherever you decide to get renters insurance, you should be prepared to compare the costs and coverage options of multiple insurers, as well as determine the value of your property and which hazards it faces.

Renters insurance covers the repair or replacement of damaged personal property, liability coverage, and additional living expenses if you are forced to leave your home temporarily. It does not cover damage to the structure of your home.

Who should you get renters insurance from?

Renters insurance is available from a variety of companies, ranging from large providers such as State Farm, Erie, and Allstate to smaller online-only insurers such as Lemonade. Getting renters insurance usually doesn't take long, especially if you buy a policy online. You can also buy renters insurance whenever you want, as long as you don't mind dealing with an agent directly.

What options are there when choosing renters insurance?

Getting an online quote is almost always the quickest way to get renters insurance. You can also speak with an agent over the phone or in person if you prefer more traditional methods.

Many of the largest renters insurance providers will let you view, customize, and buy renters insurance in under five minutes.

Because of the ease of access, it is simple to compare policies and find the best coverage for your needs. It is worth noting that many businesses do not operate in every state. Some companies will also not provide coverage themselves, but will instead collaborate with other insurers.

How to find cheap coverage

When it comes to renters insurance, the cheapest option isn't always the best option, but the cost of a policy is still an important factor to consider. The cost of your policy is determined by where you live and how much coverage you require.

While the national average annual cost of renters insurance is $224, the cost of your policy may vary. For example, depending on where you live, the average cost of renters insurance ranged from $12 to $37 per month.

It may not be possible to match the national average depending on where you live. The most expensive states are Louisiana, Arkansas, Michigan, and Oklahoma. Smaller, more rural states like New Hampshire, Utah, and Wyoming have the lowest renters insurance rates, though New York is fourth on the list.

Compare customer service scores

In addition to comparing the prices of various renters insurance policies, you should consider how satisfied a company's policyholders are when they file a claim. The National Association of Insurance Commissioners (NAIC) keeps track of the number of complaints received by insurance companies. This information is available on the NAIC's website as well as through your state's insurance board.

Before purchasing a policy, it is also a good idea to look at J.D. Power's ratings for most companies. J.D. Power specializes in customer experience research. Consumers responded positively to companies that received higher J.D. Power ratings. Lemonade Insurance and USAA, for example, have very high customer satisfaction ratings from both the NAIC and J.D. Power. It is important to note, however, that USAA is only available to military families.

Do you need renters insurance?

There is no legal requirement to purchase renters insurance, but some landlords will require you to do so. We recommend that you keep an active renters insurance policy — or that of your live-in family member, if you have one — whenever you rent. Unless they are related, roommates are not usually covered by each other's renters insurance, so each tenant will need their own policy.

Renters insurance is inexpensive, with an average monthly cost of $19, and it provides adequate financial protection against fire, theft, and most natural disasters.

When you apply for renters insurance, you'll be asked about the value of your belongings — companies typically recommend between $15,000 and $40,000 in property coverage as a starting point. You can choose a lower limit, but only if you've already calculated the value of your belongings and discovered that it is less than the coverage you require. Furthermore, it is possible that you will accumulate more possessions over time, increasing your total coverage requirement.

You can also usually change the amount of liability coverage that comes with your policy, though coverage typically starts at $100,000. Liability insurance protects you in the event that someone else sues you for property damage or bodily harm.

When deciding how much coverage to purchase, consider your total assets as well as any hazards on your property, such as swimming pools or certain breeds of dog.

How to buy renters insurance online

Most companies offer renters insurance online. Many providers provide online forms through which you can request a quote and purchase coverage without speaking with an agent. Purchasing renters insurance online typically entails three steps:

1. Calculate the value of your belongings.
2. Decide on the right amount of coverage.
3. Select the best price, and adjust.

Step 1: Calculate the value of your things

Start an inventory of your property to determine the amount of coverage you require. This inventory should contain several important pieces of information about each item.

• Names
• Serial numbers
• Descriptions of their functions
• Prices, with appended receipts if available

Taking photos or videos of your items can be beneficial as well. At least one copy of your inventory should be kept away from your property.

If you need to file a claim, an inventory can help you maximize the value of your belongings, especially if you don't have replacement cost coverage.

Once you've determined what you own, you can determine whether you have any special items, such as jewelry or art, that aren't covered by most renters insurance policies. Instead, you'd need to buy riders or endorsements to insure these items.

Step 2: Decide how much insurance coverage to buy

You must choose a total amount of coverage for both general personal property and any specialty items. You must also choose a total for liability coverage.

Liability insurance will protect you in a variety of situations involving the rental property. Among these are:

• If your pet bites someone on your property
• If someone is hurt in your rental home and you are found to be at fault,
• If you cause certain types of damage to the rental home,
• If your family member damages someone else's property

You must enter any information about other members of your family who will benefit from your insurance, such as a partner or spouse. Insurers will occasionally allow you to add roommates to your policy as well. Be aware that any claims made by your roommate for their property may have an impact on the prices of your own future premiums.

If you live in a disaster-prone area, it may be a good idea to purchase additional coverage when purchasing renters insurance. Floods, sinkholes, and earthquakes, for example, are not typically covered by a standard renters or homeowners insurance policy. If you live in a hurricane-prone area, you may be required to purchase flood insurance from the National Flood Insurance Program.

Step 3: Select and adjust the best price

Before deciding where to buy renters insurance, make sure you're getting the best price for your insurance needs by increasing or decreasing your coverage limits and adjusting your deductible.

Companies will frequently offer a variety of add-ons for additional protection, as well as discounts for home features such as dead bolts and burglar alarms, when providing quotes online. You should also consider whether your policy provides actual cash value or replacement cost value for your items. If something happens to your property, the distinction is critical.

• Actual cash value: The amount your older item would have sold for at the time of loss. This takes into account depreciation, which means that an older item will be worth less than a comparable item today.
• Replacement cost value: The cost of replacing your item today with a similar or newer version of the item.

You can also adjust your deductibles to change your price. A deductible is the amount of money you must pay if you want to file a claim. Many renters insurance policies have $500 deductibles. This means that if your $1,000 laptop is destroyed, you will be charged $500 before your company will pay you. Your monthly premiums will be lower if you choose a higher deductible, but so will your claim payments.

All that remains is to sign up for your policy after you've decided on a company, a price, and coverage options.