Can I Afford a Renters Insurance Premium?
Posted on January 12, 2008
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So you are debating about getting renters insurance. You may ask yourself Is this something I really need to spend my money on?
Having insurance is like having a security blanket just in case bad things happen. Renters insurance typically covers $20,000 in loss of personal possessions in the event of fire, theft, and some acts of nature, and typically $50,000 in Liability protection if someone hurts themselves in your dwelling. Without insurance, you would have to pay this money out of your own pocket . That could be economically devastating.
Why risk it? You would be surprised at how economical renters insurance really is!
,a href=”http://www.rentersinsurancecentral.com”>Renters insurance is relatively inexpensive, and you may well qualify for a variety of discounts. It is really simple. For a quick idea of costs, go on-line and fill out a quick no cost, instant price quote. I quickly checked with 2 companies about a fictional rental unit in NY. They both offered $20,000 in personal property coverage and $50,000 liability coverage with a $250 deductible. The quote from one place was $239 annually and another was $238 annually. This comes out to less than $20 per month. For lower rates, you can raise the deductible. In the case of my fictional rental, if I increased the deductible to $500, I would save about 7%.
For more protection, you can pay more for replacement cost coverage. Beware of companies that offer really low rates - they may be offering you actual value instead of replacement costs on your possessions. In my fictional rental scenario, if I declined replacement cost, the premium price was about $5 less a month, which is a 25% savings. However, there is a big difference between replacement cost and actual value. Replacement costs means you will be reimbursed based on today’s replacement cost rather than actual cash value. If your policy covers actual value of your stuff, the company takes the cost of your stuff when you originally bought it and reduces its value by time/wear and tear and depreciation values. So in the event of an actual claim, you will receive lots less money, many times not enough to cover the price of getting even used replacement items.
I did a very basic 4 question quote just for a quick idea of premium costs. When you decide you really want to purchase insurance, you need to fill out a much more detailed form. It still only takes about 5 minutes, but it will give you a more accurate quote. If you do this on-line at a place that will show you at least 3 other companies’ rates, then you can compare the quotes "apples to apples". You can also call around to different companies and talk to an agent about getting a quote.
It is really easy, and once you see that you can buy a policy that will protect you from loss of thousands of dollars in possessions and liability, for only a couple hundred dollars a year, can you really afford not to have renters insurance?
How To Find a Renters Insurance Company
Posted on January 11, 2008
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Where can you get renters insurance? Most insurance companies that carry home owners insurance also carry renters insurance. That means there are many sources for renters insurance. But it is hard to know what insurance company to go with.
Are they any good? Will they be there when I need them? Are their agents available? Will I have to wait forever for my claim to be processed?
Maybe the best place to start when looking for a good company is to ask around with other people that you know who rent or own homes. Who do they use? Are they happy with the company? If they ever made a claim, were they satisfied with the process?
You could also check with the company that provides your automobile insurance policy. Do they offer renters insurance? Will they give you a discount if you use them for both policies?
Of course, you can also look on-line. On-line you can find all the big name companies like AllState and GEICO, plus a number on on-line only ones, like Esurance.com. Spend some time looking around. See what is available. You can use an on-line insurance comparison company, like NetQuote.com, to get you price quotes from a number of different companies. Or, some insurance companies, such as Progressive.com, will give a quote for their company, as well as quotes from other companies.
The companies that you consider should have a web page that offers free, no-obligation price quotes. On their web page, they should also have information about the company, how to file a claim, how to contact them, and maybe financial reports or ratings. Information like this can help you decide if the company is legitimate before you divulge your personal information to them.
What you really what to make sure of is that the company you choose is a legitimate company that will give you good coverage and service when you need it. There are a number of companies that actually rate insurance companies. Most of them require you to subscribe to their services, but you can find some information for free.
Do You Have the Correct Type of Renters Coverage?
Posted on January 10, 2008
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If you are looking for renters insurance, the first thing that you need to do is calculate the value of all of your possessions. Once you complete that, you’ll have two values: the current cash value and the original purchase price.
The reason you calculated the two values, current cash value and original purchase price, is because some rental insurance policies pay only the current cash value, while others will pay the actual replacement cost. As you notice the large difference in the numbers, it is important to know what type of coverage you are getting. The original purchase price total will give you a good idea of an actual replacement cost, which is probably much higher than the current cash value.
Most rental insurance companies write basic policies that cover current cash value. This means if you have a claim, you will be paid only for what your property was worth at the time of the claim (your yard sale price). To you, that 4 year old $1200 computer is great, worth every penny of what you originally paid for it, and you can’t live without it. To an insurance company, its current cash value is only a couple hundred dollars. Not nearly enough to buy a new one.
You can get renters insurance policies that cover actual replacement cost, which will pay you what it actually costs to replace the items you lost, at today’s prices. It is important to realize, this type of coverage is more expensive. But it might be the better option for you.
If it turns out you have something that is very valuable besides usual home items, such as jewelry or coins, you will need to get a separate policy to cover that. This is because many types of possessions have a dollar limit that a typical renter’s insurance policy will cover. So anything valued above that limit should be handled separately. Check with the individual insurance company for a list of such items.
Make sure that you are clear on the type of coverage, current cash value or actual replacement cost, that is written into your renters insurance policy.
How To Calculate the Value of Your Possessions
Posted on January 9, 2008
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If you are thinking about getting renters insurance, you have to have an idea on how much your possessions are worth. But it is not an easy thing to do. Some people over-estimate the value of it, and some people under-estimate it! It is hard to really know what you have, especially after it is all gone. Trying to remember everything is almost impossible. So if you are going to get a renter’s insurance policy, here are some guidelines that will help you make an educated decision.
The first thing you need to do is take an inventory of what you have. Literally go around to each room or area where you have possessions, and write down what you have. For the bigger and more expensive items, it is good to itemize. List each thing, when you got it, the purchase price and your best guess of the current value. Remember, the current value is what you would expect to get for it today, in it’s current condition (for example, at a yard sale). If you have receipts, keep them with this list. You also need to write down any serial numbers you can find on the electronics. For the less expensive items that you have a lot of, such as your clothes or general kitchen items, you can do a bulk entry (something like - clothing or kitchen accessories) and guesstimate a quantity and value of the lot. If you can, take pictures of your rooms and garage/storage spaces. To be the most accurate, open drawers and closets to capture the true quantity of your things. This helps when trying to recover your losses during a claim.
Now add up the purchase price number column from all these line items, and then add up the current value number column from all the line items. Look at these two totals. It is amazing how much stuff you have and how much money you need to replace it all!
Now you know one reason why you need renter’s insurance!
After you make your list, collect your receipts, and take your photos/videos, make sure you keep your documentation updated. Also, be sure to store your documentation in a safe, fire-proof place away from your dwelling - like a bank safe deposit box.
Reasons to Get a Renters Insurance Policy
Posted on January 9, 2008
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You need renters insurance for the same reasons that you have other types of insurances - because you never know when something unfortunate is going to happen!
Let’s say there is a fire at your apartment, and all your stuff is ruined. What happens? Most people who rent a dwelling assume the landlord is responsible to cover their loss. But this is not true. A landlord has insurance to cover his losses, not yours. Can you afford to start over?
Another thing most renters don’t think about is what would happen if, for example, a friend comes in, slips on something, and gets hurt badly. You would be personally liable. Can you afford to cover someone’s medical bills?
What if someone breaks into your apartment and takes your stereo, TV and new leather jacket? Can you afford to replace them?
How about if you answer the phone as you are washing the dishes and leave the water running. You forget about it and have a nice long phone conversation, while the water overflows the sink and leaks into the apartment below you, ruining their furniture. Guess what - you would be liable for their loss. Can you afford this scenario?
These are terrible scenarios that I hope never happen to you, but they do happen to people every day. What can you do?
That is where renters insurance comes in. The typical renters insurance policy will cover you for these types of expenses.
Most renters insurance policies will cover your personal property losses caused by all sorts of things. Typical policies cover theft, vandalism, fire and/or smoke, lightning hits , electrical surges, and storms. Renter’s insurance will also provide liability coverage for claims or lawsuits as a result of someone else sustaining bodily injury or property damage caused by an accident in your rented unit.
So, why do you need renters insurance? Because bad things do happen to good people. And it is better to be safe than sorry!
Welcome to Renters Insurance Central
Posted on January 8, 2008
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Thanks for visiting Renters Insurance Central. For this web site, we have taken time to collect and organize information that can help you learn about insurance coverage for renters. If you’re looking at a specific renters insurance plan, or if you are just interested in learning more about rental insurance coverage, then you have come to the right spot.
If you would like more information on renters insurance, then please feel free to let us know.
Thanks again for visiting. Be sure to stop back often to receive additional information on renters insurance.