Finding the appropriate renters insurance is much more than simply getting the lowest possible price; it’s also about ensuring your financial security in the event of a tragedy or a lawsuit. Before you begin looking for renters insurance quotes, here’s what you should know.
What is a renters insurance quote?
A renters insurance quote is a personalized estimate of your policy’s cost. It is determined by variables such as where you reside, the value of your personal goods, and if your property has fire alarms or other protection systems.
Because each insurance company uses a unique formula to calculate rates, it’s worth looking around to compare renters insurance quotes and discover the best deal.
How to get renters insurance quotes
When it comes to buying renters insurance, you have various alternatives. Regardless of whatever one you choose, receive at least three quotations — all with the identical coverage limits and deductibles — so you can determine which provider is providing the greatest value for your needs.
Shop for renters insurance quotes online or by phone
Numerous insurers provide online renters insurance estimates. Some allow you to purchase a policy online, while others direct you to an adviser over the phone to finalize the specifics before you buy.
Renters insurance is simpler to purchase online than other types of insurance. However, most organizations allow you to complete the entire process over the phone if that is your preference.
Work with a captive insurance agent
When seeking for a renters insurance quotation, another alternative is to contact a captive insurance agent who works for a single firm, such as Allstate, State Farm, or Farmers. Because they only work with one insurer, these agents typically have extensive understanding of that company’s policies.
Although some captive agents are given a salary, the majority of their income is typically derived from commissions and sales bonuses, which can serve as an incentive to sell higher-cost products. Captive agents, unlike independent agents, cannot provide estimates from numerous insurance firms.
Contact an independent insurance agent or broker
If you want to discuss your renters insurance alternatives without committing to a single company, consult with an independent agent or broker.
Independent agents and brokers deal with a variety of insurers, allowing them to give a broader range of quotations. Agents work for insurance companies, but brokers work for you. Many agents can “bind” insurance plans, which means they can begin providing coverage before the formal policy is issued; brokers, on the other hand, apply for policies on your behalf.
Both agents and brokers are paid by commission, while brokers may impose additional costs. Before working with an agent or broker, inquire about the commissions and costs associated with their services.
What information do you need to get a renters insurance quote?
Before you begin looking for renters insurance quotes online or by phone, you’ll want to have the following information ready:
- Basic personal information (name, date of birth, marital status, and social security number).
- The rental address and the date you want coverage to start.
- The approximate worth of your personal belongings (use the calculator below to help you estimate).
- The amount of individuals you live with.
- Details regarding your rental, such as its proximity to a fire station and the presence of security features like deadbolt locks or burglar alarms.
- Information about previous insurance coverage and claims (be truthful; the insurer will find out).
What goes into a renters insurance quote?
Many factors can affect your renters insurance rate, but each insurance provider evaluates them differently. The most common factors are:
Where you live. If you reside in an area of the country prone to hurricanes, wildfires, or other natural catastrophes, your premiums will most certainly be higher. Your neighborhood also matters: Tenants in high-crime areas typically pay more for renters insurance.
Local fire protection. If your home is near a fire station or hydrant, you will most likely pay less for renters insurance than someone living in a distant area.
Protective characteristics. Is there a security guard at your apartment building? Does your home have burglar alarms, sprinklers, smoke detectors, or other safety features? All of them could result in premium discounts because they lower the risk of fire or theft.
Your credit. According to studies, bad credit is associated with a higher rate of claims, thus those with low credit scores pay extra for renters insurance in most states.
California, Maryland, and Massachusetts do not allow the use of credit to set homeowner, renters, condo, or mobile home insurance costs.
Your coverage limitations. One of the most important considerations in any renters insurance quotation is how much property you would need to replace in the event of a disaster. A one-bedroom apartment furnished with a few self-assembled pieces will cost less to insure than a huge rental home loaded with antiques and cutting-edge equipment. A higher liability limit could lead to a higher premium.
Your pet. Your dog adds a lot to your family, and it may also increase your renters insurance cost slightly. The liability section of your renters policy normally covers you if your dog hurts someone outside your household, although large dogs or specific breeds may have a slightly higher premium – or not be protected at all.
Your home-based business. If you work from home, you may need to add a rider to your renters policy or purchase a separate business insurance to cover your office equipment and potential liability for a job-related injury that occurs at your residence.
You made previous claims. If you’ve made any previous claims, even with a different company, your insurance may view you as a higher risk and charge you extra.
Choosing the right amount of coverage
A regular renters insurance policy typically contains three categories of coverage. Here’s how much to purchase.
Personal Property Coverage
Personal property insurance will pay to replace your belongings if they are stolen or damaged by fire, hurricane, or other calamity. To determine the appropriate level of coverage, you’ll need to know the approximate value of your items.Â
Additional living expenses
This policy, often known as “loss of use,” will pay out if you must relocate while your house is being restored following a covered claim. This covers the cost of motels, restaurant meals, and other expenses that exceed the regular cost of living at home. Loss of use coverage might be calculated as a percentage of your personal property limit or as a fixed amount (often several thousand dollars).
Liability coverage
Renters liability insurance covers expenditures such as medical bills for a visitor who trips and falls on your rug, legal fees if you are sued, and repair costs if your youngster damages a neighbor’s glass.
Before deciding on your liability limit, which normally ranges from $100,000 to $500,000, tally up the whole value of your assets, including vehicles and savings, and ensure that you acquire enough liability to cover them so you don’t lose them in the event of a lawsuit.
How to get the cheapest renters insurance quote possible
Renters insurance costs an average of $148 per year, or about $12 per month, according to ReliableInsurance rate research. If you browse around, you may be able to find a better deal. Even if you find a business you like, compare rates once a year and if you relocate to ensure you are not losing out on a better deal.
Here are some additional strategies to minimize your renters insurance premium:
Increase your deductible. If you’re willing to pay more out of pocket when you file a claim, your annual premium will be reduced. (Just make sure you have the deductible amount on hand or available.)
Work on your credit. Paying bills on time and lowering debt will help you improve your credit and get a reduced renters insurance cost.
Bundle your insurance policies. You can typically get a discount if you insure both your car and your rental with the same company.
Include safety features. Install a burglar alarm or have your landlord install a deadbolt on your external door. Not only will these features keep you secure, but they may also save you money on your renters insurance.
Remove unnecessary coverage. Review policy paperwork on a regular basis to ensure that your coverage meets your current needs. For example, if you purchased additional insurance for a musical instrument you no longer own, you can cancel that coverage.
