Home Insurance Tips for Renters
Owning a home is a huge responsibility. Insurance is absolutely necessary to protect your property and your belongings. Does that same sort of responsibility apply if you’re renting instead of buying a home? Of course it does, but only for the things you own, and not for the building itself. In most cases, the insurance that’s carried by the homeowner you’re renting from doesn’t cover your personal property, so you should provide your own protection. Following are a few home insurance tips for renters.
Determine Your Needs
When you rent a home, one of the first things you should do is determine how much your personal property is worth. If something were to happen to the home you could lose everything. Figure out how much it would cost to replace your possessions and then start looking for a good insurance agent to talk about getting renter’s insurance. It would be best to have a general idea of the type and amount of coverage you’ll need, and it would also be a good idea to do some online research before getting any quotes. You may also want to tell the homeowner that some home insurance policies may cover a renter’s property. If they’re willing to include you in their policy, you could work out a way to reimburse them. If your landlord is not interested in doing this, you can get your own home insurance quotes.
Questions about Coverage
After you’ve done enough research to be comfortable talking to an agent, it’s time to give them a call. They’ll begin by giving you some general ideas of what they believe should be included in your renter’s insurance policy. You may be overwhelmed by the choices, but if you’ve done your research correctly, and have become familiar with the terminology, you should be able to come away with a policy that fulfills your needs at a price you can live with.
Combining Policies
If you own a car, ask the agent about combining your renter’s policy with your car insurance. The same goes for health or life insurance policies. Consolidating the policies could save you some money.
High Deductible Policy
Consider taking out a high deductible on your renter’s insurance. The premiums will be lower, and you can put the difference in the price into a savings account. Make sure you don’t touch that money unless you absolutely need it.
Replacement Value
The payout amount of your policy should cover the actual replacement value of your property. If it doesn’t, you may end up not getting enough from a claim to get new things. The premium may be a little higher for a replacement cost policy, but you’ll be much better off if something unpleasant happens.
Safety Features
If you’ve improved the safety features of the place you’re staying, your rates will be significantly impacted. The more you safety-proof the home, the less your rates will be. By installing deadbolt locks, smoke detectors, and storm-proof shutters your payments will decrease.
Group Rates
Belonging to an organization that is eligible for group rates can also lower your premiums. Ask your agent which groups qualify for the reduced rates, and if you don’t already belong to one, consider joining. It may save you quite a bit of money. While you’re at it, you may as well ask if there are any additional discounts that may be available, and what it would take to be eligible for them.
Be Comfortable
Before signing a renter’s insurance policy, make sure you’re comfortable with all the aspects of it. The research you’ve done should prepare you for any possibility, but if you have any doubts about the policy ask the agent to go over it again. If there’s anything you’re not completely comfortable with tell the agent you’d like to make a few changes. They are professionals, and they’re there to serve you. Remember, you are under no obligation to sign a policy that you’re not completely satisfied with.
Guest post from Bailey Harris. Bailey enjoys writing about real estate, insurance, finance, and related topics.
