Renters Insurance Articles

There is a common misconception concerning homeowners insurance and renters insurance among those looking to get insurance. Admittedly, there are some similarities between the two, but there are distinct differences you should be aware of as well. Below we’ve highlighted some of the key differences in case you have wondered what they are.

Probably the biggest difference between these two types of policy is the exact coverage that is being provided. Homeowners insurance not only covers possessions inside of the home, but is also responsible for the home itself as well as the surrounding property. Obviously, this makes sense considering the renter has no obligation to provide coverage on the landlord’s property.

Another big difference between the two types of insurance is that if you are ever trying to get a mortgage loan to purchase a home, homeowners insurance is almost always required. It is clear why. The lender would require to be paid in full if anything happens to your home while you were still paying on the loan. However, the landlord does not care if your belongings are covered or not. His only concern is for the property itself. There are some landlords who require that you purchase renters insurance policies. Even in such circumstances, it is not that the lender is concerned for financial reasons as much as it is for liability of your belongings. They would rather you handle your own policy so that if anything should happen to your possessions, nothing can possibly fall on their shoulders.

There are often major differences when comparing the coverage differences of renters insurance and homeowners insurance, but the largest one is probably the price tag when looking at comparable premiums. It clearly costs more for homeowners insurance than it does renters. However, it is not that much more, but the homeowners insurance frequently covers much more. This is for good reason. A homeowners policy is normally responsible for covering the expense of the home and the property itself in some situations. The little additional cost in premiums is not an indication that the policy only covers a little more than the renter’s insurance policies.

There is also a common difference that some people have difficulty understanding. Homeowners insurance and renters insurance are different when it comes to the ability to transfer them from one location to another. When looking at a homeowner’s insurance policy, it is responsible for covering the home itself as well as the possessions. For this reason, you are unable to hold the same policy when you move to a new residence. Renters insurance is related to the possessions themselves. Therefore, regardless of where you move, the policies for your possessions can remain the same. You are much more likely to be able to pay the same premium regardless of where you live, unlike a homeowners insurance policy.

When people think of renters insurance, they frequently do not believe they ever need it. It is true that most people who buy insurance probably will never need it yet, everyday people are filing insurance claims in the face of the unexpected. People purchase insurance in hopes that they would never need to use it, but knew that it is a smart decision to have a policy protecting them should the need ever arise.

Myth #1: My landlord is covered therefore I do not need insurance coverage.

You better rethink about how insurance policies work. Why would the landlord be responsible for your belongings? Granted, the damaging event took place in a residence he owns, but if the house ever burns, his policy is going to be used to rebuild the home. It will not be used to compensate you on buying a new bed or couch. Therefore, you should expect that if the home gets damaged, you will not receive any type of payment for damage that your possessions incur. The worst part about it is if the damage was your own fault, you are likely going to be responsible for covering the expense of the repairs.

Myth #2: I have a safe home. I really don’t need insurance.

Just because you live in a nice apartment complex or in an affluent neighborhood probably does mean that your chances of having items stolen are less likely. However, this does not mean that it could not happen. Again, policies are bought for those “just in case” type situations. They are never purchased because you expect things to happen. The coverage may not be just for covering stolen items, but could be used if someone sues you if they hurt themselves in your home. It is not typically the landlords insurance policy that will cover this type of thing.

Let me be more blunt on the topic. Weather, natural disasters, and fire do not care about how safe your home is. You can still have your water pipes burst in freezing weather. Hail and wind do not discriminate based on the location of where you live. Cars can still come around a corner and crash through the wall of a home. You may not have intended on these things happening, but the point of these examples is that you should be aware that accidents do occur. You should note, however, that flood and earthquake insurance policies can often be separate policies from renters insurance.

Myth #3: I do not have anything that is valuable

More than likely if you are reading this you have a computer, you maybe own a camera, a phone, clothes, and possibly even have some old furniture with old appliances throughout the home. The prices of these items alone can add up to a sizable amount. It is very likely that you have jewelry or other types of things that could add up to a pretty penny if you are expected to come out of pocket to pay for these items on your own.

The vast majority of policies will cover things like electronic equipment (including DVD’s and CD’s). You will also find that they will cover furniture, clothing, books, photography equipment, sports equipment, among several other items. Actual values are taken into account, but things like pictures, jewelry, and firearms that may have sentimental value, you may not get as much as you would like for them from your policy.

Myth #4: It is too expensive to get Renters Insurance.

The average person who is renting is able to afford some type of policy of renters insurance. Generally, a basic policy can range from about $25,000 to about $30,000. They will frequently come with $500 deductibles. These policies can be as little as $20 per month. Yes, you heard it right. That is a very small price to pay if an accident does happen. If you are running into a problem of finding cheap renters insurance, you should perhaps install smoke alarms and set out fire extinguishers. The insurance companies view these as safety measures that could help drive down the cost of a policy. It could be a wise investment.

If you rent a house, condominium or apartment, you should seriously consider getting renters insurance. Renters insurance is very reasonable in the first place, but don’t just buy based on the first quote you receive. It pays to shop around to get the best deal. Here are 12 ways to help you save money on renters insurance.

1. Do some comparison shopping and compare the quotes you receive. Don’t just buy renters insurance based on one quote. Do some shopping to get the best deal.

2. Consider buying your renters insurance and car insurance from the same insurance company. You may be able to get a discount for having multiple policies with one company. You can still do comparison shopping and tell other insurance companies that you will consider moving your auto insurance to them if they offer you the best deal.

3. Increase your deductible. This could save you a lot of money. This will also help prevent you from filing multiple small claims on your renters insurance. If you file many claims on your renters insurance you may end up with surcharges on your policy.

4. Install deadbolts on your doors and a security system. Installing security and safety features such as deadbolts on the doors, locks on windows and burglar alarms will lower the cost of your renters insurance policy. Discounts for deadbolts usually only apply if they are installed on every door that leads to the outside

5. You may also be able to get a discount on your renter’s insurance if there is an indoor sprinkler system installed. If you have one, be sure to let your insurance agent know.

6. Have smoke alarms installed. Many insurance companies will give you a discount on your renters insurance if there are smoke alarms installed.

7. If you smoke, do it outside. Smoking inside the house could cost you on your renters insurance.

8. Ask about organization discounts. Some insurance companies provide discounts if you belong to specific organizations such as fraternities, credit unions and other organizations.

9. Sign up for automatic payments. Life insurance companies will often give you a discount on your renters insurance if your monthly payments are automatically withdrawn from your bank account. You can often save $5 a month, which adds up to saving $60 a year.

10. The insurance rates on your car and rental may be higher if you live in what is considered a high risk area. If you think you are paying too much based on where your live, check with your local life insurance commissioner.

11. Having good credit can also save you on your renters insurance. Many insurance companies base your rate in part on your credit rating. If you do not have a good credit rating look for an insurance company that does not do credit checks.

12. Ask your insurance agent about discounts. Renters insurance discounts vary from company to company, so be sure to ask your agent what discounts they offer.