Renting, Student Life

Shopping for Renter’s Insurance

As we’ve mentioned in our previous posts, renter’s insurance is a great way to make sure the unexpected is covered.  However, it can be a little overwhelming figuring out where to start.  It’s doesn’t have to be too hard, though.  All you have to do is shop smart and find a policy that fits what you need.

The first thing to do before you even start searching for the right policy is to inventory your place.  You should put together a list of all the things you have in your place (at least those things that you would want covered by insurance), including their values and serial numbers.  This will help you figure out how much coverage you will need.  You also want to take photos of the items and of your place as it is now.  You may even want to videotape a tour of what your pad looks like.  This way you will have visual evidence as to the current condition and items you have.

You may also want to consider how much you want to pay per month and what your deductible should be.  Your deductible will be the amount you pay before your insurance company will contribute money to fix the damages or replace any items.  You want to make sure that the amounts you choose are those that are right for you.

After you’ve done your prep work, the next step is to start looking at some quotes that include the parameters you would like to have met.  If the quotes you are getting are a little off, you want to figure out if that is something you could live with or not.  You want to check around with a few different places too.  The idea is not pick the first number you see.

When looking at different plans and insurance companies, it is also a good idea to look at the terms they have for their policies.  You want to make sure that they will cover what you need and on terms that are acceptable to you.

After you’ve gathered all of your information, it is then time to compare the prices and the terms; figure out what will be best for you.  After all, this is an investment.  You may even want to talk to a representative (if you haven’t already) to clarify what they cover and how it all works.  It’s also a good idea to talk to your landlord to get their input before making your final decision.

When looking for renter’s insurance, it can be a little overwhelming.  However, it doesn’t have to be too hard, as long as you shop smart and choose the plan that is right for you, you won’t lose out.

 

Reference:

“How to Buy Renter’s Insurance” by Apartments.com

 

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Housing Advice, Landlords, Renting

Why Landlords Should Encourage Renters to Get Renters’ Insurance

For some landlords, it is purely the decision of the tenant on whether to get renters’ insurance or not; for renters, renters’ insurance often seems like an “unneeded expense.” However, by renters not having renters’ insurance coverage, it cannot only hurt them, but it can also hurt their landlords. This is why it is important for landlords to not only educate their tenants on the benefits of renters’ insurance, but to encourage them to get this type of coverage.

First, by ensuring tenants have renters’ insurance, landlords can prevent any unwanted insurance claims being made against them. In fact, according to survey by Joshua Tree Consulting, rental property owners deal with about eight insurance claims like this a year. By helping to educate and encourage their tenants to get renters’ insurance, it can limit the number of these claims and the associated legal expenses that may come with it.

For landlords, renters’ insurance can also help cover their deductible in cases in which their tenant is responsible for damage to the property. In fact, according to a white paper published by Joshua Tree Consulting, landlords pay an average of over $2,400 per property for tenant-caused damage, as compared to just over $1,300 in properties where landlords required tenants to carry renters’ insurance. In this way, landlords can save money by encouraging tenants to get renters’ insurance.

While there are several financial benefits to encouraging renters’ insurance, responsible landlords can also value the importance of having this type of coverage. Incidences like fire and theft are not so “farfetched” in that they are impossible. By encouraging tenants to get renters’ insurance, landlords can help ease the minds of their tenants, so that should these incidences occur, they know they will be covered..

Renters’ insurance for both tenants and landlords is smart choice when renting, as it can save both parties money and stress in the case of fire, theft, or injury on a property. Landlords should remind tenants of the implications that incidences have, and the damage and loss they can inflict. It is important to stress foresight and caution when renting, as accidents can happen. For while renters’ insurance may seem like an unneeded expense now, it is something that will help both landlords and renters get through the times in which the improbable becomes probable.

Reference

“Renters’ Insurance Protects Landlords as Well as Tenants” by Jeffrey Turk

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Finances, Housing Advice, Renting

The Lowdown on Renters Insurance

There’s a lot to consider when you decide to move off-campus, including remembering all the furniture you have to bring, all the supplies you’ll need, and all the food you’ll have to buy.  However, before you move in, you may want to consider getting renters insurance.

In an article we read by the National Association of Insurance Commissioners, what many students may not realize is that most landlords will not have insurance that protects their renters’ property.  More and more landlords are, in fact, requiring that their tenants have renters insurance when they move in.  For students, renters insurance is a great way to protect important things like computers, stereos and other important property.  While you may be concerned that it’s an added expense, consider that the premiums are only about $15 to $30 a month.  That will save you a lot if your laptop gets damaged or stolen!

Photo from myfirstplace.com

When you’re looking at purchasing renters insurance, there are two basic types of coverage you should be aware of.  The first type is personal property coverage (the most common type), which will pay to repair or replace your property if it’s damaged, destroyed or stolen.  The second type is liability coverage, which will protect you against any claim or lawsuit from any injury or damage while on the property that you’re renting.

However, there are many differences when it comes to the providers and the plans they offer.  Be sure to talk to your landlord, your parents, and the insurance providers about the plans they offer and what they cover.  Don’t take the first plan you see, but shop around before you make your decisions so that you get the coverage that works best for you.

Here’s a checklist we found at Leaky.com that will help make it easier for you to find renters insurance.

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