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Thanks for making it easy to find the cheapest renters insurance. Knowing our stuff is always protected gives me peace of mind.

Matt and Bethany, Charleston SC

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The best rental insurance coverage available will have the most complete policy list of covered perils, the exact number of clauses and riders that fit the customer's needs. It will have the highest reasonable liability limits, and deductibles that will be high enough to satisfy the insurance company and low enough to never be a burden to the policyholder. It will also be carried by a company which responds to claims promptly, thoroughly, and justly and does not unreasonably penalize customers for either claims or mistakes.

This best rental insurance coverage is not the prerogative of any particular carrier, although some companies might score better than others in certain areas. The best rental insurance coverage can only be the result of a negotiation between a well informed customer and a helpful, knowledgeable professional.

Covered Perils

The average rental insurance policy covers the same combination of perils as do the standard forms of homeowners insurance. They all list fire, theft, vandalism and malicious damage, explosions, falling objects, damage from vehicles including aircraft, and damage from some natural events. The policy for persons living in rental homes also provides liability coverage in the event that a person gets injured whilst on the property.

The standard policy does not cover natural disasters in its clauses and listed perils, but all carriers make riders and separate policies available to incorporate all of these, that are then attached to the policy to help create the best rental insurance coverage.

Limits of Liability

Renting a home also carries with it the responsibility to maintain the premises safe for all persons who may come onto the premises, even for those who were neither invited nor desirable. The best rental insurance coverage will carry the liability limits most appropriate for the renter whether of a house, loft, or condo. It will take into consideration how often the family entertains, whether the leaseholder were a senior citizen or college student, and the presence on the property of structures such as swimming pools, basketball or tennis courts and the like. This information will be useful in deciding how high the liability limits would be, and if perhaps, an umbrella liability policy would be a wise move.

An umbrella liability policy carries the highest limit that a homeowner can purchase. It is not attached to any other policy but can enhance the rental insurance and cover any financial losses above the limits of the first policy, and up to the limits of the umbrella policy if there is a need for more extensive coverage because there is such a great risk of injury on their property.

For example, if there were a swimming pool on the property, the best rental insurance would have an umbrella policy providing maximum coverage for the family against lawsuits and judgments.

The Deductibles

The policyholder and the insurance carrier sign a contract saying that that they will share the costs of any claims that get settled, and the policyholder agrees to a specific amount per claim or per peril. This portion for which the policyholder is responsible is known as the deductible and is always proportional to the size of premium. That is to say that, the higher the deductible that the customer agrees to pay, the lower the premium payment that the insurer will insist on. The carrier then agrees to be responsible for paying the remainder of the claim payment.

The best rental insurance agreement could, in theory, have a zero amount for certain deductibles. This arrangement would work well for any rental coverage customer and perhaps especially for someone like a college student low on funds, a family on a tight budget, or a senior citizen renting a condominium. Renting a house or apartment is usually a temporary situation, so the best arrangement for any renter would probably be to make as small a financial investment in the property as possible.

Carrier Ratings

Three major agencies exist which center their work around rating insurance companies, grading them as best, not so good, poor and insolvent and so. They are A. M. Best, Fitch's, and Standard and Poor's, and they each focuses on a somewhat different aspect of the rating. A. M. Best attempts to predict, or determine a company's outlook would be over a period of twelve to thirty-six months classifying companies on the basis of the quality of their work, their standards, and on their potential for continued success, including their ability to pay claims in a catastrophic event and remain solvent. The best companies get A, A+, even A++. The less than best get B's, C's and even F's.

The best rental insurance companies will have A's and the best rental insurance policy will combine all these qualities, whether the leaseholder were renting a townhouse, a loft, single family house, for one year or for five.