You already have car insurance, health insurance, and dental insurance. You may also have vision insurance, life insurance, or even pet insurance. It’s so easy to get overloaded by all the different information out there about insurance. When do you need it? When is it a total rip off? And when it comes to renting, how do you know exactly what type of coverage to look for?
When it comes to renting, there are two pieces of advice I always follow:
- Never rent a place I would be embarrassed to show my mother.
- Never go without renters insurance.
However, rental insurance companies (sometimes called carriers) and types of coverage (called policies) can vary greatly. Luckily for you, I’ve gathered up all the information you need to make the right decisions when it comes to renters insurance. Let’s start by debunking the various myths about renters insurance that always seem to come up.
Myth #1: Renters Insurance is Too Expensive
If you’ve ever shopped for renters insurance, you may feel this way. Why the heck is coverage so expensive when you don’t even own the property? I’m here to tell you that renters insurance, in general, is something you can’t afford not to have. But that doesn’t mean you should buy it from just anyone!
Like most other types of products, you’ll get the best price and coverage when you shop around for renters insurance. Going to your dad’s insurance agent down the street may not always get you the best price. In fact, many major insurance companies charge extra for renters insurance because they specialize in something else.
Other major insurance companies may give you a huge discount on renters insurance if you have one or more other insurance policies with them. Because it’s a toss-up, you have to do your research and get more than one quote before you buy.
Myth #2: My Building is Super Safe and None of My Stuff is Expensive. I Don’t Need Renters Insurance
Your hand-me-down furniture may be easy to replace, but renters insurance is for more than just your possessions. Many renters insurance policies cover items that are stolen even when you’re outside your residence. So imagine if your bike goes missing after riding it across town, or your laptop gets swiped from the table of a coffee shop.
Even if you’re outside of the property you’re renting, your renter’s insurance policy may help you cover the cost of replacements. That’s some serious peace of mind.
Renters insurance can also help cover expenses for events that are out of your control. For example, let’s say a leaky pipe bursts and you need to find a place to crash for a few days. Instead of suffering through a week of couch surfing, renters insurance may arrange to cover the costs for you to stay in a hotel while your landlord fixes the problem.
Myth #3: My Roommate Has Renters Insurance, So I’ll Be Covered
This is one of the most dangerous renter’s insurance myths because it’s very untrue. Renters insurance generally only covers expenses and property of a single person. In fact, the only time a policy might extend to cover another person is if they’re your spouse or dependent.
So if something happens and you don’t have insurance, you’re the one who will be left in the dust. And do you really need to give your roommate that kind of satisfaction?!
Essentially, anyone who rents is someone who needs a renters insurance policy. Whether it’s an apartment, house, duplex, or any other type of property, a renters insurance policy is one of the best tools to protect you from the unexpected.
Plus, most renters insurance policies can be customized to the exact level of coverage you need, so there’s no excuse not to shop around for quotes until you find the best fit for you.
Myth #4: My Lease Starts in the Middle of the Month, so I Can’t Get Renters Insurance Until the Beginning of Next Month
Most renters insurance policies are available to start on any date. You’ll likely pay on a monthly basis, but that “month” doesn’t have to start on the first. Especially with technology-driven insurance companies like Lemonade, you can apply for renters insurance straight from your phone and have an active renters insurance policy almost immediately!
When it comes to getting coverage, your best bet is to apply for coverage that starts the same day as your new lease.
And if you’re moving, check out the fine print of your policy. You may be able to get a refund for any prorated premiums or apply them to the policy for your new address.
Myth #5: Renters Insurance is Just Another Way for Greedy Insurance Companies to Take my Money and Make a Profit
It’s no secret that some insurance companies completely overcharge for renters insurance, and that’s not right. But not all insurance companies are bad! Many insurance companies will give you a discount on your renter’s insurance premium when you bundle with at least one more insurance policy – like car insurance. Bundling may be able to save you 10-25% on your renter’s insurance policy, so that’s often the best place to start.
But you don’t want to stop there. Get quotes from other insurance companies, especially innovative, tech-oriented companies that are trying to re-define the insurance space.
Lemonade, for example, is an insurance company that isn’t driven by profits. In fact, if they collect too much in premiums, their Giveback program gives their customers the power to choose causes to donate the extra profits. That’s a way better use of money than lining their pockets!
Questions to Ask When Choosing a Policy
To help you find the renter’s insurance policy that will best suit your needs, use the following questions as a guide.
- Who needs coverage? Will the coverage be for just you? Or do you have a partner/child who should be covered by the policy as well? Remember, if you have a roommate, they will need their own policy!
- How much coverage do I need? The bulk of your renter’s insurance policy is based on how much coverage you need for your personal possessions. Start by thinking about all the basics, like furniture, kitchen items, and clothing. Then consider any special items that might require extra coverage. We’re talking about things like your laptop, appliances, bike, or jewelry. Knowing what your policy needs to cover will help you make sure you don’t pay too much (or too little!) for coverage.
- What discounts am I eligible for? We mentioned that some insurance companies will offer a discount for bundling your renter’s insurance policy with another existing policy. You should also shop around to make sure that’s the best deal. Even stand-alone policies can be cheaper! Always consider asking for extra details, like whether you can get a paid-in-full discount or student discount. It never hurts to ask!
Being informed and using these questions as a guide will set you up to get the renters policy you need – without overspending! And don’t forget, most renters insurance policies can be adjusted at any time. So if you experience any changes – anything from moving to getting a new washer/dryer – make sure you don’t forget to update your policy!
