How to Choose the Best Renters Insurance

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As of 2022, there are over 44 million renter households in the United States. If you are a part of this statistic, then you may be in need of renters insurance. Renters insurance is essential to making sure that both you and your belongings are protected during your rental period.

But how do you find the best renters insurance? This is what you need to consider when searching for a coverage policy to fit your needs.

Know the Different Types of Coverage

The first step to choosing your policy is to know about types of insurance you have to choose from. Before you buy renters insurance, you need to decide between an Actual Cash Value policy and a Replacement Value policy.

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An Actual Cash Value property is generally cheaper, but it considers everyday use and wear and tear when deciding on the value of your belongings. With a Replacement Value policy, the insurance company will pay the claim based on what it would cost you to buy the same item at its current market value.

Get the Right Amount of Coverage

The coverage amount you choose may differ depending on if you are renting an apartment or a house. If you are renting a house, you will likely have more possessions and therefore may want a higher policy amount.

The best way to determine the coverage you need is to take inventory of your belongings and add up its worth.

Figure Out What Is (and Isn’t) Covered

Before you purchase renters insurance, it is important to know what is and isn’t covered. Oftentimes, renters insurance covers:

  • Loss of use: This covers your expenses if your home becomes uninhabitable
  • Medical: Medical expenses will be covered if someone is injured on your property
  • Personal property damage: Covers the cost of damaged property
  • Personal liability: Gives you legal protection from accidents in your residence

Most renters insurance policies do not cover earthquakes, sinkholes, bed bugs, and damage to your vehicle.

Choose a Qualified Company

Once you have figured out how much insurance you need, then it’s time to choose a company. Search for renters insurance companies in your area and make a list of your favorites. You can then give each company a call and compare their services and prices.

If you have existing insurance coverage such as car insurance, you can also check to see if they offer renters insurance. Some companies will offer package deals that will make everything more cost-effective in the end.

If you don’t want to do the research on your own, then you can use sites such as findaplan.com that will take your needs into consideration and find the best policy for your needs.

Find the Best Renters Insurance Today

As long as you do your homework and understand what renters insurance includes, finding a good policy should not be an issue. The best renters insurance policy depends on your specific needs and lifestyle.

If this article was helpful, then feel free to check out the rest of our blog for more informative insurance content.