5 Tips for Getting the Right Renters? Insurance

Renting rather than buying a home remains a popular option for many people throughout the United States. Leases tend to run fir 12 months making renting a much better choice for people who expect to move frequently. It is also a lot easier for most people to come up with the money for a security deposit for an apartment, which is usually the equivalent of one month?s rent, that a down payment on a house. A house down payment is often between five and 20%, or more depending on the credit score of the home purchaser. Another plus is that when you find an apartment for rent, it probably comes with a property management company to deal with any problems that come up. One thing that most renters overlook is the importance of renters? insurance.

5 Tips for Getting the Right Renters? Insurance

1. Find out how much coverage you need. Most insurance for renters covers more than just what is kept in the home. While most people, according to State Farm, own about $35,000 worth of items in their home, many get more protection to cover between $100,000 and $500,000. The best thing to is make up a list of everything that would need to be fully replaced if the home is ever destroyed.
2. Make sure you are clear on what your policy does and does not cover. In addition to replacing your stuff, you should include liability coverage in your plan. You also need to make sure your plan covers a wide array of problems that may come up. You should be able to get information from your property management company about what others in your apartment community typically get for their policies. If you live in an area that is prone to flooding make sure your policy covers this kind of damage.
3. Bundle it! Many companies offer discounts if you get your other insurance policies with the same company. This can include life and auto insurance. This can end up saving you at least 10 to 20% on all of your insurance policies. Ask your property management company if your complex has any deals or specials with an insurance carrier.
4. Learn the difference between Replacement Value policies and Actual Value plans. The former will pay the full cost of replacing your items where the latter will pay for only what they are worth ? after wear and tear are factored in. If you need to save money on your policy you can go for both an Actual Value policy with a higher deductible. Generally, the higher the deductible, the lower your monthly premium will be.

Most renters insurance policies cost about $12 per month. The peace of mind renters get for that small price makes investing in rental insurance a very good idea. Taking stock of all of your belongings before a disaster strikes is a good way to be organized if something bad should happen so going through this process is a win-win.