How to Buy the Best Renters Insurance
What is Meant by “Best Renters Insurance?”
Do you want to know how to find the best renters insurance at the lowest price? By following a few simple guidelines it can be relatively easy to find many good low-priced insurance companies. But when you finally stumble upon the “lowest price” it doesn’t necessarily mean you have found the best renters insurance.
Before we can begin looking for the best renters insurance we must first define what “best” actually means. Does it mean the cheapest? Does it mean the best coverage? Or does it mean something else entirely? For our purposes it will be the lowest price offered from a top-rated insurance company that provides the coverage we are seeking.
Insurance companies, like any other businesses, can be financially strong or financially weak. In these poor economic times it makes sense to stick with a company that is not only highly rated, but has a history of good service. The whole idea of insurance is to reimburse us for our losses, but if we end up doing business with a shaky company that doesn’t fulfill its side of the contract it can result in huge financial losses. This is not how you come up with the best renters insurance.
What Type of Coverage Does the Best Renters Insurance Have?
Now that we have decided to stick with a well-known company our next step is to determine what type of coverage we need. There are two basic types: personal property and liability insurances. Renters insurance covers personal property such as furniture, clothing, electronic equipment, and other personal belongings. If any or all of these items are stolen, damaged, or destroyed due to burglary, water-related damage (excluding floods), fire, vandalism, and other causes we can be reimbursed for our losses. In addition, it covers a limited amount for jewelry, silverware, expensive furs, and other valuable items. If you want to be reimbursed completely for these types of valuables you will need to get additional insurance which is added to your policy as a rider.
“Replacement Cost” or “Cash Value”; Which Do You Need?
It’s usually best to get “replacement cost” coverage instead of “cash value” coverage so that everything can be replaced if it is lost or damaged. Replacement cost coverage will make it possible to buy the items that were lost while cash value coverage will only reimburse us for the value of the personal property at the time of loss. This usually means you won’t get enough money from the insurance company to buy everything that was lost. Since the increase in premium is not much extra it usually pays to buy replacement cost insurance.
Do Not Forget Renters Liability Insurance…
In addition to renters insurance you will want to purchase personal liability insurance. If someone gets injured at your residence it’s possible that you could be sued. This has the potential to put you at risk for many thousands of dollars in damages. Renters liability insurance pays legal fees and any claims made against you for any damage done to a person or their property.
Where is the Best Place to Get Insurance Comparison Quotes?
After deciding what you need insured and how much it will cost to replace all of the personal property that is important to you, it is time to start shopping for the best renters insurance company that can provide you with the coverage you need. The best place to get started is online. If you want the best renters insurance at the lowest rates, this is one required step. Simply type “renters insurance comparison” or something similar into a search engine and you will find many insurance comparison web sites. By filling out a simple form or questionnaire you can get quotes from many different insurance companies. And the best part is that most of these companies will be A-rated. Once you find a top-rated company with the best rate you can then dig a little deeper in an effort to lower the premiums even further, and eventually coming up with the best renters insurance.
Insurance Consolidation is the Next Step…
The next step is to personally talk with an agent on the phone. The first thing you want to ask them is about consolidation. The easiest way to slash insurance premiums is to consolidate your auto and renters insurance by purchasing them both from the same company. This will often save you as much as 15% or more.
Do Not Forget to Ask about Discounts…
There are many types of discounts that insurance companies will give you if you simply ask about them. If you want to find the lowest prices for the best renters insurance, it’s the discounts that will get you there. Non-smokers, people with high credit ratings, senior citizens, people belonging to certain organizations, and others will often qualify for discounts. Discounts are also available to people that have installed safety and security items such as dead bolts, fire alarms, smoke detectors, and burglar alarms. The only way to know which discounts you are eligible to receive is to ask your agent. Have them tell you every discount that their company offers to see which ones you qualify for. You may end up with several discounts, each of which can individually lower your rates. There are many discounts available; you just need to ask questions to determine which ones you qualify for. To get the best renters insurance rates, this is a must.
In summary, finding the best renters insurance is an easy process. First, determine which type and how much insurance you will need to replace your personal property if it is lost or damaged. Next, you must determine how much liability coverage you will need to protect your financial assets such as bank accounts, stocks, and other investments. Your next step will be to visit some insurance comparison web sites to find the lowest rates. And finally, ask the agent about discounts that you might qualify for. By performing these easy steps you can often get good coverage for less than $15 per month.
