Top 5 Renters Insurance Tips for First-Time Tenants

If you’re a first-time renter, you might be unsure whether renters insurance is necessary. While the structure of the rental unit may be covered by your landlord’s insurance policy, it is likely not extended to your personal property or liability in the event that someone is hurt while on your property. Renters insurance tips can help with that.


Renters insurance is a kind of property and casualty insurance that aids in defending your possessions and offers liability protection in the event that someone is hurt while on your property. If you rent an apartment or a house, your landlord will probably insist that you have a renter’s insurance policy even though it is not required by law.


As a renters insurance policyholder, you’re protected against damages to your belongings or injuries in your rental unit. Renters’ insurance helps repair or replace lost or damaged items in case of fire, theft, or natural disaster. If a visitor is injured in your home, renters’ insurance will cover medical costs. If a covered peril forces you to move out while your home is repaired, your loss of use portion will pay for a hotel stay or equivalent home. They can reimburse you for lost food, extra food because you don’t have a kitchen, and other living expenses.


To replace your belongings, you need to file a claim and pay your deductible. Without renters insurance, you’d have to replace everything yourself. Renters insurance is worth the few dollars per month it costs. Renters insurance protects you, but there are a few renters insurance tips to consider when purchasing a policy.


Choose the Right Coverage Amount

Renters insurance helps replace your belongings after an accident, theft, or natural disaster. According to State Farm, the average renter has over $35,000 in belongings, but how much coverage you need depends on several factors.


Creating an inventory of your belongings can help you decide on a policy amount. Note the item’s name, date, price, and current value. After adding everything up, one of the renters insurance tips is you should know how much coverage to get. Renters insurance covers more than your belongings. Liability coverage protects you if someone is injured or their property is damaged at your home. You can choose between $100,000 and $500,000 in coverage.


Know What Isn’t Covered

In general, renters insurance covers a wide range of situations, but there are some exceptions. Certain policies don’t cover earthquakes or floods. Depending on your insurer, you might have the choice to buy a separate policy to cover these occurrences. Follow these renters insurance tips by asking for a thorough explanation of what is and isn’t covered when comparing quotes before deciding which one to go with.


Understand the Different Coverage Types

Choosing between an Actual Cash Value and a Replacement Value policy is a decision you must make when purchasing renters insurance. Actual Cash Value policies consider depreciation and regular use when valuing damaged property. This type of policy has lower premiums but less coverage if you need to file a claim. Depreciation and wear and tear don’t affect Replacement Value. The insurance company pays based on the item’s current market value. This policy costs more, but for renters insurance tips, it may be worth it if you need to replace something expensive.


Bundle Your Renters Insurance Policy

A simple way to reduce the cost of coverage for your renters insurance tips is to combine your renters insurance with your other insurance policies. Find out if and how much renters insurance costs from the company that provides your auto insurance. If your insurer offers a discount for bundling services, you could reduce the cost by anywhere between 10 and 20 percent.


Opt for a Higher Deductible

The deductible is the amount you must pay before your insurance company pays. Depending on your insurer, a renters policy deductible may be $200 to $1000. It’s tempting to choose a lower deductible so you don’t have to pay as much when you file a claim, but keep in mind these renters insurance tips: it’s not always the best move. 


A higher deductible means you’ll pay more if your stuff is damaged, but your monthly premiums will be lower. Long-term, the money you save on premiums could offset claim costs. Make sure to save $1,000 for a deductible.


When it comes to renters insurance, one of the biggest mistakes that tenants make is assuming they cannot afford it. Regardless of whether you rent a home, an apartment, or a condominium, renters insurance is a necessity. Get renters insurance right away if you don’t already have it. By keeping in mind these renters insurance tips, you can find a policy that meets both your needs and your financial constraints.