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
RENTERS INSURANCE AGENTS
Tenants renting a home tend not to think about insurance. After all the house is owned by the landlord, who has his own insurance which seems to imply that a tenant doesn't need any additional protection. This is incorrect. A landlord is responsible for the house itself and any internal fixtures, like water heaters, sinks, dishwashers and other appliances. However he or she has no liability for anything else on the property, nor does the landlord's insurance extend past the previously mentioned home fixtures. This means that any insurance the landlord has does not extend to the possessions or furniture of the tenant. Should any belongings be damaged in an accident or stolen through theft, the tenant would not be protected or recompensed for their loss. As a result, renters insurance companies offer a special form of insurance that is a subset of homeowner's insurance but intended to protect the property of a tenant living in a rental property.
This is called renters insurance. Renters insurance is a special coverage type that is protects the belongings inside a rental property. Because of the gap in coverage between a landlord's insurance and the possessions owned by the tenant, many landlords prefer or require the purchase of this distinct coverage, insuring that the landlord is not exposed to unnecessary litigation from their tenants. The exact nature of the plan's protection vary a great deal from plan to plan, which is why consultation with a renters insurance agent is helpful to determine the best renters insurance coverage. A renters insurance agent can examine the contents of an apartment owned by the renter and produce the proper plan to ensure the security of the tenants belongings.
Renters insurance varies in price depending on several factors, though the underlying rationale is fairly simple. If a tenant has a large number of valuable belongings or lives in an area with a high risk of accident or theft, the purchase of renters insurance is a reasonable idea. Check with a renters insurance agent to determine the likely factors influencing your decision as well as in determining the specific nature of your coverage.
A renters insurance agent will be able to provide a specific set of tailored insurance depending on the nature of the rental property. However, some basic points on the nature of rental insurance are important. Different causes for property loss or damage will require different coverage plans. Theft and fire are two different causes, requiring a plan that covers both of them. Each plan varies, though many overlap or provide umbrella coverage for several causes in a single plan. Check with your rental insurance agent to determine the most reasonable protection plans for your home based on the location and types of likely damage that a home could face. Make sure that you're covered for every plausible source of damage as it would be terrible if an insured rental property was lost to a cause that wasn't covered under that plan.
Not only do plans vary in the nature of their coverage, they can also vary greatly in their deductible. A deductible represent the initial investment by a tenant with renters insurance in replacing an item in their home before the insurance company covers the remainder. For example, a plan with a hundred dollar deductible means that the first hundred dollars of cost for replacing a damaged item is incurred by the policy holder rather than the insurance company. And cost past that initial deductible is paid by the company holding the policy. Check with a renters insurance agent to make sure that you have a reasonable deductible based on your income and the price of the rental insurance policy. More expensive renters insurance policies will have lower deductibles so balancing the plan's cost and deductible is an important way to maximize the economy of your plan.
The method in which an insurance policy pays out is dependent on the nature of the plan. Plans are generally split into two basic forms, ACV or Replacement Value. In the event of an accident, say a couch that suffers water damage in a flood, the value of that couch to the insurance company, and hence the amount of money paid back to the policy holder, can be determined as an ACV (actual cash value) or as its replacement value. Replacement value is the price of the couch when purchased and represent a policy that simply replaces the item in question. The couch's ACV would depend on its age and the depreciation in value that an item suffers with time. The older the couch the less money the insurance company will pay out to replace it in the event of an accident. The decision between the ACV and replacement value policies is one that is best done in concert with a renters insurance agent who can determine the best course of action depending no the nature of your belongings.
It may appear that finding the best coverage would be simple matter of paying the highest premium and that effective protection requires an expensive plan, your renters insurance agent can suggest several methods of reducing the cost of your plan. These often include measures to reduce the risk of an accident and thus the risk of the insurance agent having to pay out the coverage plans. Anything you can do to reduce this risk is generally reflected in the cost of a plan's premium. Fire prevention systems like extinguishers, sprinklers and alarms can reduce the cost of a plan as can coverage specific items like sump pumps in high risk flood areas. These risk reduction methods are specific to causes covered by the renters insurance plans, so its not good having a sophisticated security and alarm system if you don't have a plan that covers theft.
Selecting a renters insurance agent is potentially a complicated process. Deciding the right types of coverages, the deductible and the ACV/Replacement decisions are all difficult choices that are best made with the help a trained renters insurance agent to provide the necessary advice as well as demonstrate different options.