Renters insurance is absolutely essential if you rent your home or apartment. However, many renters often neglect actually to purchase it. While most landlords and property management companies carry a specific amount of coverage on their properties, this does not absolve you of liability regarding your possessions in the event of a fire or other natural disaster.
Statistics show that 20 percent of all homeowners insurance claims are related to the average cost of replacing damaged personal items such as clothing, electronics, and furniture. Renters insurance can help protect against this financial burden, but only if you take advantage of the tips below when buying these necessary coverages.
10 Renters Insurance Buying Tips
When you rent an apartment or buy a home, there are many things to consider. You need to think about the security of your place and how well it will fit your needs. One thing that most homeowners overlook is renters insurance. So, we’ll list down the 10 tips for buying renters insurance. These tips can help you ensure you have the right coverage for your situation.
Tip #1: Buy Enough Renters Insurance Coverage
It’s easy to skimp on the amount of insurance you buy if you don’t think about it. However, if something happens to your apartment or home, you are going to want enough money set aside to replace all of your belongings. This means taking an inventory of the damages in the event of a disaster. Just make sure your total amount doesn’t exceed one-third of your annual income! This will ensure that you purchase ample coverage without overpaying for these coverages.
Tip #2: Don’t Pay for Coverage You Don’t Need
Some renters end up paying for coverage that they don’t necessarily need. For example, you may not require medical payments coverage if you’re healthy and accident-free, or water backup coverage since your local area doesn’t have a history of flooding problems. Instead of wasting valuable money on these coverages, look at the minimums required by your lease agreement first to avoid unnecessary expenses later on.
Tip #3: Don’t be afraid of a higher deductible
Your deductible is the amount that you lose out on every time you file a claim, which means that if you don’t have one set aside in case something bad happens – like your apartment catching on fire – then it’s going to cost big bucks when disaster strikes. In many cases, having a lower starting point can help reduce premiums as well as improve your savings in the event of a loss. This is especially true when you have a deductible that is equal to or greater than your rent payments!
Tip #4: Don’t Go Without Riders
Riders are extra coverages for renters insurance policies that can help protect against losses such as floods, smoke and extended coverage. These policies also often offer lower rates than the primary policy, so if you plan on having your home or apartment for a long time, look into getting one of these policies to provide additional savings over time.
Tip #5: Investigate Split Limits
A split-limit option can help reduce the amount of money you pay out of pocket if disaster strikes while allowing you some real flexibility in what happens after a loss occurs. Split-limits usually come into play when either filing a claim with your renters insurance provider or shopping around for quotes from other companies. This will help you pay less money out of pocket and may even allow you to access a larger percentage of the cash value.
Tip #6: Review Your Living Arrangements
Your choice of living arrangement shouldn’t be affected by whether or not you have renters insurance, but it may very well impact what type of coverage you need at any given time. For example, If you switch over to an apartment that has superior protection than the one you currently live in, then you may want to change policies as well. This will make it much easier for you to shop around and find an excellent deal with a company that can meet your changing needs.
Tip #7: Take Advantage of Replacement Cost Coverage
Replacement cost coverage is very important if you own valuable electronics or firearms and need to replace them after they break or are stolen. When applying for this coverage, the insurance provider will pay out enough money so that you can purchase brand new items instead of used ones – but only if they have been made available from stores at the time of filing! In many cases these types of products don’t become available until weeks later due to high demand, so be careful!
Tip #8: Shop Around!
You should never buy renters insurance from the first company you come across, as there are usually dozens of options available for those who take the time to look. The more insurance quotes you seek out and compare before choosing a policy, the better your chances will be at getting an excellent deal and maximizing your coverage with each and every one of them.
Do not fall into this tempting trap. Instead, always remember that having additional protection is well worth any additional fees that may come with it. So avoid skimping on renters insurance wherever possible just because money is tight. This can cost you extremely high amounts of cash if something happens, which means that it is always better to do your homework and get more protection while paying a little extra.
Tip #9: Investigate Renter’s Insurance Discounts
It is extremely common for renters insurance companies to offer discounts on their policies, so don’t ignore them if they arise. For example, one of the most popular choices is an agreement where you are given a discount if you allow your renters insurance policy to be attached directly with an auto insurance package that already exists with the same company. This can end up saving you hundreds of dollars per year by combining both policies, which is very important in most situations!
Tip #10: Ask About Higher Liability Limits
When it comes time to actually apply for coverage with any given company, there are two different types of limits that you will be able to choose from – standard or higher. You can avoid having to pay more money by electing for the latter option right away, as it will allow you to have a greater maximum coverage amount per accident.
In Conclusion on Renters Insurance
Remember to stick with the above tips when you are in the process of choosing a renters insurance policy. This will not only help you minimize your expenses but may also ensure that you get better protection out of your money if something bad happens! Always remember that you are under no obligation to buy any kind of coverage until you actually need it for an emergency. So, shop around before deciding on anything final.
Not sure where to start? Give us a call and get an insurance quote! At Lopez Insurance, we offer a wide variety of protection coverage for you and your home or family.
