Renters insurance may not be required, but having a policy is certainly a smart idea. Having to pay out of pocket for damaged or stolen personal items in your rented apartment, condo or house is not ideal for most tenants. Additionally, your landlord’s insurance policy will not cover your personal belongings, making a separate renters insurance policy necessary for full coverage.
Keep in mind that renters insurance doesn’t just apply to your belongings. It can also protect you from liability in a situation such as a guest being injured in your home. If you don’t foresee having the funds to cover expensive medical bills or legal fees on your own, renters insurance can come in handy.
How to get renters insurance
The process of getting a renters insurance policy may seem overwhelming, but knowing exactly what you need to do ahead of time can help make the process easier. Here’s an overview of the steps to take:
1. Figure out what is and isn’t covered by your landlord’s insurance policy
Your landlord is required by law to have a certain amount of insurance on the building. However, it often only covers the structure itself, not the value of individual tenant’s belongings. Your landlord’s insurance policy will also likely not include bodily injury coverage or certain types of damage, such as water backup damage or appliance-related damages. Speak to your landlord and get a copy of their renters policy to assess what you need to insure.
2. Do your research
Learn the basics of different types of renters insurance policies so that you know exactly what’s covered and what’s not covered. Keep in mind, the value of your belongings may impact the amount you pay for a renters insurance policy. The higher in value they are, the more you might pay, and vice versa.
3. Compare insurance companies
Before selecting a company, it’s best to shop around and compare rates. It’s also beneficial if you already have auto insurance coverage with a particular company that you trust. You may even qualify for a renters insurance discount by bundling your policies.
4. Estimate the value of your personal property
The monetary value of your personal belongings in your rented space may be more than you think. Take an inventory of every item in your space – from electronics to art to home goods to clothing. Estimate the current value of these items (not what you paid for them) and tally them up. This is a good way to approximate how much insurance you will need in the event your belongings are stolen or destroyed.
5. Get a renters insurance quote
Many companies allow you to apply for a free renters insurance quote online, but you can also get a quote over the phone or in-person. An experienced insurance agent can help determine the best coverage and plan for your financial situation. Remember that a higher deductible means a lower insurance premium and a lower deductible means a higher premium – plan your renters insurance budget accordingly.
Ready to apply for a quote now? Get a free online renters insurance quote from Nationwide today.