What People Are Saying
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
COST OF RENTAL INSURANCE
The cost of rental insurance is typically not exorbitant, particularly considering the extent of the financial losses that a renter could encounter if he or she neglected to acquire protection against the perils that homeowners may be vulnerable to and that can sometimes be grave enough to cause serious financial difficulties from which recovery could take a very long time.
Renters are not required by law to take out insurance for their possessions or the house, condo, or apartment that they rent, just as residents of owner occupied homes don't have to either. It simply makes sound financial sense in almost every case. Like homeowners insurance, renters coverage provides a safeguard against financial trouble that could come as a result of a guest's receiving some injury on the property, or from damage caused by natural disaster or other peril such as vandalism, malicious damage, or civil commotion. There is no clause in the landlord's policy that designates compensation for tenants for the loss of personal possessions and valuables except they occur on the premises but in an area external to the rented unit.
Reducing Renters Coverage
Moreover, the cost of rental insurance is also negotiable. The rates that tenants ultimately pay for the best rental insurance can vary widely based as they always are on any combination of a fairly wide range of factors. The geographical location, the actual street address, and the specific type of dwelling all affect the cost of rental insurance, because these factors insurers valuable clues about the risks to their customer. The cost of rental insurance could be affected by the tenant's stage in life, so the considerations accorded a student will be different to those taken into account in the case of a senior citizen couple, a divorced man, or a family with teenagers.
Burglar alarms in the townhouse or condominium, dead bolts on loft doors, and other systems will thwart theft, help keep the renter safer, and earn the tenant a reduction in the rental coverage cost. The same applies to sprinkler systems and smoke detectors that protect the property against damage from fire also help to lower the cost.
Most companies that sell any kind of homeowners coverage will give a discount on the if the renter already has a policy with that company, or is willing to transfer other coverage to the company and merge them all under a multiline policy.
Some carriers offer promotional rates online that can reduce the initial cost of rental insurance for their new customers. It is important for customers to note, however, that home insurance should always be approached with great care. Customers should never finalize the purchase of a product as important as this without direct interaction with an agent, preferably in person.
Because the rates are not very high to begin with, and because there are so many factors that could work to reduce it even further, the cost of rental insurance will likely fit into the budgets of most households.
Specifics of Rental Coverage
It is always advisable to prepare well in advance of signing a renters policy. It helps ease the process if renters approach it with confidence and focus. Preparing well for purchasing rental insurance means gathering all the necessary information from other people, from websites, and from agents themselves, and then taking the time to very carefully consider objective needs, personal preferences, lifestyle elements, as well as short, medium, and even long term protection and financial goals.
The customer will have, among other things, taken inventory of valuable possessions, and will have attached proof of ownership documentation as well as any receipts or proofs of purchase. Where necessary, he or she will have had valuables appraised, however informally. The renter will also have made some determination about whether the policy will be written for the actual cash value or the replacement costs, one of the factors that make a significant difference in the premium cost of rental insurance.
Too often, customers are reluctant to discuss the insurer's policy for filing claims. Instead, the best time to do that would be before signing on the dotted line to avoid having it cost too dearly in the long run. This should never be neglected. It could be the difference between a claim paid and a very high cost of rental insurance.
Getting the Best Cost on Rental Rates
The customer who prepares thoroughly before purchasing rental insurance will also be the one who gets it at a cost that fits with everything else. Being properly prepared for negotiating the cost of rental insurance with an agent could go a long to influencing the agent to offer substantial discounts. Professional and conscientious agents prefer to work with well-informed customers, or at the very least with customers who want to know what they are about.