Best Renters Insurance

This insurance was specifically created to cater to the needs of tenants. The landlord’s insurance is not reliable, it only covers the building without your belongings.

With renters insurance, you can pay for and replace your possessions if disasters such as fire, tornado, and the likes destroy the building.

This insurance also includes liability coverage and additional living expenses. Renters often focus on insuring their belongings, other coverage types can prove just as valuable.

The Best Renters Insurance Companies:

Below are the lists of the Best Renters Insurance Companies one can find:

Best Renters Insurance Companies Comparison:

What is Renters Insurance?

Renters’ insurance, often called tenants’ insurance, is an insurance policy that provides some of the benefits of homeowners’ insurance but does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure – Wikipedia.

How To Get Renters Insurance:

Renters insurance can be broken down into simple processes:

Compare renters insurance quotes
Make an application to the company of your choice
Understand what renters insurance covers and does not cover
Determine how much of the renters’ insurance you need.

What Does Renters Insurance Cover?

There are standard renters insurance policy types and they are:

Personal Property Coverage

This type covers personal property as the name suggests; your jewelry, clothing, dishes, pots and pans, electronics, rugs, and others.

It also covers damage from issues such as fire, vandalism, smoke, objects, explosions, theft, and the likes.

You have to choose between replacement cost coverage and actual cash value(ACV). The replacement cost coverage provides a better coverage as it doesn’t take into account depreciation.

It is more expensive as well. The actual cash value would pay only for the depreciated value.
Some items also have special limits for certain types of losses.

You can schedule high-value items so you get paid what they’re worth once they get stolen.

Liability Insurance:

Renters insurance gives you liability protection as well. It helps when you’re sued for property damage or injuries to somebody else. It also pays for your defense.

A typical liability insurance policy is about $100,000 but you can increase that amount with other renter insurance companies.

Medical Payments to others:

This is basically included in a renters insurance policy and would pay for smaller medical bills no matter the offender. Coverage amounts usually start at $1000.

Additional Living Expenses:

This can pay for hotel bills, restaurant meals, and other costs such as pet boarding fees if you can’t live in your own home due to a problem covered by the policy.

Always save your receipts to be able to make a claim. The coverage is also known as “Loss of use”.

What’s Not Covered by Renters Insurance?

The insurance doesn’t cover the physical building in which you live. The building is covered by the landlord’s insurance.

This insurance would not cover common space incidents such as the sidewalk. It doesn’t cover the possessions of your roommate, damage caused by insects or pets, car theft, or vehicle damage.

Floods, mudslides, and earthquakes are most of the time excluded but you can cover them through additional policies.

Extra Insurance for Renters:

Other coverage types can be added to the renter’s insurance such as:

Personal Cyber Insurance: This pays for the expenses if you become a victim of cyber-attack or identity theft.
Earthquake damage: This will cover personal belongings or property in the case of an earthquake.
Flood Insurance: This covers your property in the event of a flood. It usually starts at $100 a year.

How Much Does Renters Insurance Cost?:

Renters Insurance is an expensive way to protect your belongings against uncertainties and get valuable liability insurance. Renters’ insurance prices are often similar to insurance companies.

Is Renters Insurance Worth It?:

Let’s look at some common situations that renters insurance can cover:

You own high-value items: If you own very expensive items such as art, jewelry, renters insurance can pay for them in a situation where they are damaged by a problem covered by your policy or stolen. If the policy has limits, you might need to schedule certain items.
You have a dog: In the situation where your dog bites someone be it inside or outside your apartment, you might suffer substantial financial damage without renters insurance. The liability coverage within a renters insurance would cover lawsuits like this.
Someone gets hurt while visiting your home: Renters insurance will cover medical bills, legal costs, and judgments when someone gets hurt in your home.
You need money to live elsewhere if your apartment is being repaired: If you can’t live at home because of a problem covered by the policy, the renter’s insurance pays for hotel costs and restaurant meals.
Your personal belongings are stolen: Renters insurance covers for items stolen inside and outside your home.
Your personal belongings are destroyed: The insurance will be paid to replace your stuff i.e.: if you are on the replacement cost coverage policy. You are reimbursed to buy new items, but not at the depreciated value of what you lost.

Can a Landlord Require Renters Insurance?:

Below are a number of reasons why a Landlord would require tenants to purchase renters insurance:

Damaged property from issues such as fire
Theft

Some landlords require proof of renters insurance within 14 days of the first day of the lease.

How to Get Cheap Renters Insurance:

It is always good to compare quotes from multiple insurance companies before you make a decision.

You can save on the renters’ insurance by asking about the discounts available.
Some common renters insurance discounts include:
Discounts for getting a quote in advance, paperless billings, enrolling in auto-pay, or paying your premium in full
Discounts when you have protective devices such as sprinklers, burglar alarms, fire alarms, or deadbolt locks.
Price breaks when you haven’t made any renters insurance claims
A multi-policy discount for buying more than one type of insurance from the same insurance company.

Methodology:

Renters insurance companies were scored based on discounts(30%), coverage options and endorsements(50%) and price(20%). The rates are from Quadrant Information Services; an insurance data analytics company.