Renters insurance can be just as in-depth and difficult to find as any other type of insurance, especially when you are on a limited budget and only have so much time available to search for a good option. However, once you know the basics and have an idea of what you might need to focus on, it becomes much easier to narrow down your options and find the perfect renters insurance policy for you. Here is what you might need to know before you start your search:
The Basics of Renters Insurance
Let us say you are renting a home, or at least a room in a home, from somebody else. It can be a friend, family member, or a stranger: whatever the case, that space is being rented by you, giving you the right to live there or use it as your own space with very strict rules on what you can and can’t do. Even still, you are not completely responsible for what happens: fires, thefts, and other types of damage to your property might be the owner’s fault, but you’d still be stuck without a way to replace what was lost.
Renters insurance makes sure that a tenant is covered if something causes damage to their rented home. Depending on what the insurance can cover, this could be anything from an overflowing bath to an entire house fire, and it ensures that you will at least have some financial coverage to repair and replace everything that would have been damaged. There are limits, but these come down to the individual renters insurance policy.
There can also be smaller details alongside the normal damage coverage, such as loss of use coverage (helping you pay expenses if you have to leave the home during repairs) or compensation for the damage that was caused by somebody who doesn’t legally live in your home. Most common types of damage will be part of the agreement, although this can vary depending on the company offering the insurance.
Do I Really Need It?
There is obviously one major downside with the idea of getting renters insurance, and that is the increased expenses from having to pay the insurance costs. This can put more strain on people who are already turning to renting as a way to balance their income out and might force them to reconsider how much they are spending on personal pursuits. However, the benefits still outweigh this, especially if you have a lot of expensive electronics and furnishings that could be destroyed in a single night.
If you rent multiple properties, like an office space and an apartment, you might have to get separate coverage on them all – this can make it harder for a single person to properly cover everything, but depending on the exact policy used, you might not need to get renters insurance for every roommate that lives in the same space.
Keep in mind that a renters insurance policy won’t always cover every type of damage. Natural disasters might not be covered, and floods usually need a separate policy entirely. Items that get covered also need to be properly documented: if you can’t prove the value of an item, or that you actually legally owned it, then the renters insurance policy won’t usually pay out unless it is obvious that the item has been taken or destroyed.
How do I get it?
Renters insurance is easiest to find online, through both independent and large-scale insurance companies. Some of them might only cover certain areas of the world, while others have a bigger scope and work with people in multiple countries. Either way, there is a lot to choose from, and it isn’t always easy to identify which ones are the best from a quick search.
Using sites like Insurance Geek to find a renters insurance policy that suits you can be one of the fastest ways to narrow your options and find ones that are relevant to you since you can filter down the premium prices and coverage options to get something that fits your property well. This can also be a great way to compare prices and see which ones are cheaper than others, even letting you see exactly what the differences between two companies are in terms of their total price for the coverage you need.