Your Checklist to Choose the Right Renter’s Insurance

With the trend of home ownership giving way to renting, a consistent demand for the renter’s insurance is being felt pan America. Notwithstanding whether their rental contract requires it or not, new tenants are increasingly vouching for renter’s insurance to keep their belongings away from harm’s way in an event of a calamity, vandalism or burglary. If you too are a renter looking for an appropriate cover but lack specialized knowledge on how to choose one, read on.

Determine what is covered:  

The Renters Insurance in California is the best response to any damage or loss incurred to your personal belongings due to an incident. However, what situations and belongings are covered depend solely on the insurer’s discretion. For instance, some insurers are happy to pay for damages inflicted by floods and earthquakes while others skip them outright. The situation calls for some spadework involved in knowing about all possible inclusions and exclusions. Read between the lines and the small print as well or simply ask your agent to explain.

Calculate the exact amount:  

When buying a renter’s insurance coverage, you run the risk of being over-covered or under-covered, each situation hurting you bad. If under-covered, you may require making out of pocket expenses to replace the lost or damaged articles while being over-covered means chocking your finances unnecessarily. Therefore, it all boils down to determining the exact amount needed to replace your possessions. The strategy is easy to implement. Just make a list of possessions and ascertain their estimated value and you are sorted.

Know the coverage type:  

Renter’s insurance covers come in different shapes and sizes and it’s up to you to know about what exactly you are signing into. There is an Actual Cash Value option and then there is the Replacement Value option, each having its own requirements and benefits. In the former arrangement, the depreciation in value of the insured product over a period is factored in when calculating the premium and payout. Contrarily, the latter considers only the price at which the item is bought. Prefer Actual Cash Value policy if you are comfortable with modest premium and low compensation. Else, go for Replacement Value policy to cover an expensive possession.

Opt for liability coverage:  

All renters’ insurance companies in  California offer liability coverage, usually as a package deal. It is not mandatory but you need to buy one for complete peace of mind. The liability insurance is a hedge against any injury incurred to a visitor in your premises or outside it due to your negligence. The damages to someone else’s property and defamation claims are also covered.  Although the liability insurance will inflate your premium, the benefits are worth the extra cash.

Bundle it:  

A renter’s insurance policy is easy on the pocket but when you bundle it with other policies, further savings can be realized. Insurance companies can restrict the hassles and processing costs when providing multiple policies and pass on the benefits to the buyer. So, you can end up saving up to 25% when buying two or more policies from the same insurance company.