Renter’s insurance is a necessity for families, single adults or college students who rent their homes. Although your landlord’s insurance covers the structure you’re renting and any permanent fixtures, you must protect your own furniture, clothing, computers, appliances and other personal property with renter’s insurance. To get a great bargain on renter’s insurance, watch for these common pitfalls.
Accepting The First Quote Offered
When you’re getting ready for college or moving into a new rental home, you have a thousand things to do, and collecting multiple renters’ insurance quotes may seem like a waste of time. However, you can save yourself a lot of money with one simple trick: comparison shopping. Instead of accepting an offer from the first provider you contact, compare quotes from several home insurance companies to find the most coverage at the lowest price.
Purchasing Less Insurance Than Necessary
Although your old stereo, your toaster and your collection of concert T-shirts may not seem to be worth much, the overall value of your belongings is probably higher than you realize. Take an accurate estimate of the value of your possessions to make sure you have enough coverage to replace your property if your apartment building goes up in flames or your dorm room is burglarized.
Buying Proper Insurance for Your Geography and Climate
If you live on the West Coast, you probably want to carry earthquake insurance. If you live on the Gulf Coast, you may want hurricane and sinkhole insurance. Many standard renters’ insurance policies do not cover these destructive disasters unless you pay for additional coverage called a rider. If you live in an area that’s prone to floods, earthquakes, hurricanes or sinkholes, buying a rider to protect your property is definitely worth the money.
Pay Attention to Policy Regarding Water Damage
Insurance companies can be touchy about water. While some causes of water damage, like frozen pipes, may be covered, naturally occurring floods may not be covered under your policy. Some policies cover mold and mildew damage if it results from a plumbing disaster, but not if it’s a result of poor ventilation or neglect. Make sure to read your policy’s list of exclusions carefully.
Be Aware of the Claims Deadline
Having renter’s insurance can give you greater peace of mind, but peace of mind won’t be worth much unless you call your claims representative within the required time frame. If you miss the claims window, your claim will not be considered. When you read your policy, make a note of your insurance provider’s claims deadline.
Making Too Many Claims
it’s an unfortunate fact that the more you use your renter’s insurance benefits, the higher your premiums will be. Sometimes it’s better to pay for minor damages out of pocket than to risk a rate increase. While you’ll definitely want to file a claim after a significant loss, you don’t want to call your claims representative if you torch a frying pan.
Keep Your Eye Out For Discounts
When you request a quote, make the insurance company aware of any safety or security measures in your building. Having smoke detectors, a sprinkler system, a burglar alarm or deadbolt locks may help you qualify for a discount. You may also get a discount if you buy car insurance through the same provider or arrange to pay your premiums annually instead of monthly. Take advantage of every discount to get the maximum coverage for your money.
Insurance is a necessity in today’s world, although it does not need to be as difficult as it may appear. A knowledgeable mind, filled with facts is the best insurance of all when seeking out the appropriate policy for you.
William R. Mc Covey is an insurance claims consultant from Great Britain. Since mortgage lenders require your house structure to be insured, Marshall recommends getting online buildings insurance quotes for quick comparisons in price and value.