How to Get Good Renter's Insurance

People who rent a home instead of buying one do so for a variety of reasons. No matter what the reason may be, all renters have possessions that are valuable and important to them, which makes carrying insurance necessary. Following are a few tips on how to get good renter’s insurance.

Determine Your Needs

Buying renter’s insurance is similar to buying homeowner’s insurance, only you don’t have to worry about coverage for what’s outside your house or apartment--the homeowner will take care of that. Instead, you need to insure your possessions against fire damage, storm damage, or theft. It would also be a good idea to have some liability insurance in case someone is injured while they’re visiting you.

Make a List of Your Possessions

In order to determine how much coverage to get, you need to know the value of your personal possessions. Make a list of everything you own. Itemize the list and place a dollar value on each article. Don’t leave anything out--even if it seems insignificant. If your policy doesn’t include that item, you’ll either have to pay for another one out of your own pocket, or do without it.

Make a Visual Record of Your Possessions

When you’re making your list, you should take the time to make a visual record of everything that is going to be insured. Use a digital camera and take individual shots of each item. You can also use a camcorder. Whichever method you choose, the idea is to have visual proof that you actually owned the item if you ever have to file a claim. In order to ensure that you have the proof when it’s needed, you should keep the prints or memory card in a safe place--like a safety deposit box or fireproof safe. There is now a way to save files using ‘cloud’ storage, which means storing computer files on Internet websites. This will allow you access to them anytime you want without keeping physical backup media.

Types of Coverage

There are two ways to cover your possessions: actual value or replacement value. With actual value coverage, you will only receive payment for what the item is worth at the time it’s lost, damaged, or stolen. This dollar amount is the price the item cost, minus the amount it has depreciated since you bought it. If you opt for a replacement value policy, you would receive the amount of money it would take to replace that item with something that is comparable. Of course, replacement value coverage will cost a little more, but it may be worthwhile to carry it, because if your apartment catches fire your loss could be significant. If you had to make up the difference between the actual value and replacement value of every item you own, the amount could be staggering.

Additional Coverage

If you own extremely valuable merchandise, such as expensive jewelry or a collection of rare memorabilia, your renter’s policy may not cover everything. You may need to buy an addition to the policy, called a rider, to make sure everything you own is covered.

Liability Coverage

Even though you don’t own the home or apartment you’re living in, you should still carry liability coverage. If someone slips and falls on the sidewalk outside your apartment, the building owner’s insurance will cover it. However, if they slip on something while they’re inside your apartment, you may have to pay for their medical expenses out of your own pocket unless you have liability insurance.

Decide On a Deductible

You will need to decide how large your deductible is going to be. The higher the deductible you carry, the lower your premiums will be. Keep in mind that if you have to file a claim, your insurance carrier won’t cut a check until the deductible is paid. That means you’ll have to keep the funds on hand to pay the deductible.

Shop for a Good Deal

After you’ve made a decision about the type of policy you’re going to need, it’s time to go shopping. Comparison sites, will allow you to get quotes from multiple companies at one time. You can use these quotes for comparison when you talk to your local agent about your needs.