How to Purchase Renter's Insurance

Join
Categories: How Tos

  • If you are a renter, you should know that your landlord's insurance policy will not protect your belongings. To protect yourself, you will want to purchase renter's insurance.

  • Introduction

    • Renter's insurance protects a renter's belongings from damage, liability and loss. Renter's insurance is usually inexpensive but to get the most out of your policy, follow these simple steps.

  • Step 1: Learn the Basics

    • Renter's insurance is for anyone who rents a house or an apartment. To determine whether you should purchase renter's insurance, you will need to know what coverage to buy and if you can afford it.

  • What Renter's Insurance Will Cost

    • The renter's insurance premium is the cost of your policy. Your premium will depend on:
    1. Your location.
    2. Your deductible.
    3. Your insurance company.
    4. If you need additional coverage.

  • What Renter's Insurance Covers

    • Renter's insurance may cover:
    1. Theft.
    2. Fire.
    3. Smoke.
    4. Hail.
    5. Wind.
    6. Ice
    7. Snow.
    8. Sleet.
    9. Lightening.
    10. Volcanic eruption.
    11. Vandalism.
    12. Electrical damage.
    13. Water damage from utilities.
    14. Lawsuits regarding injuries and damages to another individual or an individual's belongings that occur on your property.

  • What Renter's Insurance Won't Cover

    • Renter's insurance will not cover everything.
    1. Read your policy's fine print.
      • Make sure you are aware of limits and exclusions.
    2. Keep in mind, most policies will not cover flood damage.
      • If you are at risk for floods, you will need to purchase a separate policy.
    3. Most policies will also not cover earthquake damage.
      • If you are at risk for earthquakes, you will need to purchase a separate policy.
    4. The policy will have a maximum coverage limit so if you have expensive items, make sure the full cost will be covered.
      • If the item exceeds your limit, you will need to buy additional coverage.

  • Step 2: Determine the Type of Coverage You'll Need

    • First, you need to know that there are two types of policies:
    1. Actual cash value (ACV).
      • Coverage considers deprecation value and will only pay you what your belongings were worth at the time they were damaged or stolen.
      • Usually the payout is less than it will cost to replace the item.
    2. Replacement cost.
      • Payout is the amount that it will actually cost to replace your items.
      • The premium is usually more than for ACV policies.
    • Next, you need to:
    1. Decide if you want liability coverage.
      • Liability coverage will protect you from lawsuits if someone is injured in your home.
      • Liability coverage will also cover damage to other individual's belongings if the damage occurs on your property.
    2. Decide if you need coverage for additional living expenses if your home becomes unlivable.
    3. Decide if you want a higher deductible.
      • The deductible is how much you will pay if your belongings are damaged or stolen.
      • A higher deductible will mean lower monthly fees but also a lower payout when you need coverage.

  • Step 3: Research Insurance Companies

    • Now that you have an idea about what you will need in an insurance policy, it is time to shop around for the best deal.
    1. Check with your auto insurance company to see if they can offer you a good deal.
    2. Some insurance companies offer discounts for installing smoke detectors, burglar alarms and fire extinguishers.
    3. Call insurance companies and ask about their standard renter's insurance policy terms.
      • Ask about limits, deductibles and coverage.
    4. Compare quotes and choose the best deal.

  • Step 4: Take Inventory

    • Before you purchase Renter's insurance, you will need to take an inventory of your personal belongings.
    1. List:
      1. The item.
      2. The value.
      3. The serial number.
    2. Photograph or videotape:
      1. Every item, including:
        1. Jewelry.
        2. Electronics.
      2. Every room, including:
        1. Closets.
        2. Drawers.
    3. Calculate the worth of your belongings.
      • Once you determine the worth of your belongings, you can decide how much coverage to purchase.
    4. Keep receipts.
    5. Store documentation:
      1. In a fireproof box.
      2. In a bank safety deposit box.
      3. Online.
      4. In a digital file.

  • Conclusion

    • Renter's insurance provides peace of mind. Before you purchase renter's insurance you will want to examine your needs, inventory your belongings and research insurance companies.

Featured Pages

Contact Mahalo | Terms of Service | Privacy Policy | Advertisers | RSS for this page | CC License 2.0
©2007-2009 Mahalo.com Incorporated.
Powered By EdgeCast