Are you getting renters insurance as a result of moving out of college or for just moving in for the first time?
Maybe, you have even been a renter all this while, but you are looking for means to save cash on your renter's insurance, this guide is all you need to read to gain insight.
I can authoritatively admit that one of the most inexpensive ways to ensure the protection of your items is via Renters Insurance.
In some quarters, Renters Insurance is also referred to as property insurance so don't get it twisted.
This reference is as a result of the fact that your belongs at home and out of the home are covered by the policies.
It is more interesting to note that landlords now add the basic policy to prerequisites for lease. If you intend staying in dorms at college, it is required you maintain renters insurance.
The crux of the credo is that renters insurance is a 'must have' and not an option.
Interestingly, it is very cheap and affordable as well.
So what if you now combine renters insurance policy with others( say a car insurance policy), you may be signing up for a freebie.
The purpose of this guide is to take you through Actionable Tips To Get A Cheap Renters Insurance as College Students.
What Renters Insurance Is
Renters insurance is basically an affordable way to protect your properties or belongings when you rent.
Also called personal property insurance. Most renters insurance policies will cover your belongings both at home and while away.
Most landlords now require that you have a basic renters insurance policy before leasing out their properties. Some colleges even require this insurance for students who choose to live in the dorms.
All been said, renters insurance is important, and the good news is that it doesn’t have to wear your pockets out as you can get it at affordable rates.
You can get it free by combining your renter's insurance with other policies. I’ll show you how.
Why College Students Need Renters Insurance
Preparing and going for college is the first time for most students to both move out of their parent’s house and getting some personal possessions like electronics, furniture, etc.
lots of the support these students get at this time basically comes from their parents.
Having a possession stolen will pose a challenge both to the student the parent due to the cost of replacement. The rate of burglaries and robberies keeps increasing yearly.
As a result, it becomes very important for college students to get an insurance policy to get them covered in cases like theft, robbery, etc. Renters insurance or personal property insurance is who to turn to in cases like this to protect yourself and your stuff anywhere.
Types of Coverage To Look For With Renters Insurance
This could be confusing as different companies have different policy coverage and also each insurance company offers add-ons that you may not need.
The basic benefit you need is property protection. You want to ensure your possession is safe. Typically a policy would cover:
Some other important ones are:
Factors that influence the cost of renter's insurance premium. They include:
Level of coverage
The coverage level you choose is a major factor that determines the price on your renters premium. Using the estimation tool provided by companies is one of the easiest ways to determine what you need.
Areas with high crime rates have higher policy rates. So, if you live in an environment with higher crime rates areas more susceptible to tornadoes, wildfire, or other natural disasters, you can expect to pay more for your policy.
The deductible is any amount you pay before the insurance start reading. The formula for deductibles is: a low deductible equals higher premiums; a high deductible equals lower premiums. Also, you might want to choose a high deductible, but be certain to choose a realistic level okay for you to meet.
Replacement cost vs. Actual cash value
Most insurance companies give the option to choose either replacement cost or the actual cash value. Choosing replacement cost means you are covered for the actual cost of replacing the item that is lost. Selecting an actual cash value policy means the company covers the worth of the item at the time of the loss. Hence, this will be the replacement cost less depreciation. Replacement cost, though more expensive pays off greatly when you have to file a claim
Is Renters Insurance Worth It?
Living an apartment building or as a student, dorms or having a roomie, it doesn’t matter how careful you are — you’re just as safe as your most irresponsible roomie or neighbor.
The 8 Best Renters Insurance Providers Nationwide
3. Liberty Mutual
4. American Family
5. State Farm
Choosing the Best Renters Insurance - Tips To Getting Cheap Renters Insurance
Most companies, especially the best insurance companies provide similar coverage options. These similarities make factors like price, customer service, etc., start to take on more importance.
Understand and determine exactly how much coverage you need. Managing your renter's insurance policy starts with this. Getting this right an important part of the purchasing process and can help you reduce your insurance cost and save some money.
Do not make overestimations and then pay for insurance you don’t need. You can access the calculators of most of these insurance companies to help you estimate the cost of your possessions.
For example, Allstate’s tool helps you to determine how much possessions you have, and it’s worth it.
Determining what you want to be insured is another step to save you some money. Renters policies list and identify exactly what your insurance covers. In insurance, a peril is a cause of loss.
Some of the most common perils include:
Be sure to review the perils your policy covers when you get a quote for example.
Living in an area susceptible to fire or lightning should make you verify that these perils are listed in your policy.
Here are some random coverages. These coverages might not be needed but could come in handy.
These coverages have extra charges associated with them. You don’t have to opt for them unless your area is prone to them. Although as a college renter, chances are you don't need hurricane or flood protection. This is because you could probably take your possessions out with you when you evacuate.
Discounts are offered by all the best insurance companies to give you the cheapest renters insurance rates. This applies most to the new customer. The most common discounts include:
- Claims-Free Discount
- Protective Devices
You are eligible if you have an auto insurance or other policy with the same company.
You can access this if you haven’t filed a claim over some time. Different companies have varying duration.
if you have home security systems installed like fire or smoke detectors, you are eligible to this
Prices To Expect For Renters Insurance
Renters insurance is very cheap. A friend shares his experience of when he was in college, and he had a renters insurance policy worth $5,000. He was paying $4 per month for the policy.
Also, he used the same company that did his auto insurance. He received a "multi-policy discount" of $15 on the car insurance because of it.
In summary, he did it for free.
In the analysis above, he chose a $5,000 policy because he only had had a PC and TV that mattered to him. The other things weren’t as valuable.
You can use the $4 per month as a baseline. A policy worth $10,000 can be gotten for about $10 per month. But, as a college student, do you that much insurance?
Information Needed To Apply For Renters Insurance
A form will have to be filled online requesting your name, phone number, the address of the specific unit to be rented, and probably your Social Security number.
Additional questions could be: if you have pets. Some dog breeds can disqualify you from insurance; if you have roommates (cost might increase); and security installations of the unit (fire alarms, smoke detectors, burglar alarms, etc.).
Don’t be deceitful or give wrong information on your insurance application. Giving false information can lead to your claim been denied if you have to file a claim. Or you could even be sued for fraud.
How To File A Renters Insurance Claim
If something happens and any of your possession is stolen, or there is damage whatsoever, then, you will be filing a renters insurance claim. You can do this by contacting your insurance company and explain what has happened. An investigation will be opened to verify your claim.
Keep records of your purchases and belongings such as a laptop. You can keep a copy of your receipt or save the transaction online. If you don’t have your receipts, you can keep the pictures safe. Storing photos is also a good practice.
Also, depending on the insurance company and the type of claim, payment for the losses might take several days to weeks. Having an emergency fund will be a good idea to see you through the meantime.
Types of Renters Insurance Coverage
The best renters insurance companies gives access to four types of basic coverage:
Personal Property Coverage: This covers items used daily like clothing, furniture, and appliances. It also includes items like your jewelry collection or musical equipment.
Liability Coverage: It provides protection when legally liable for bodily injury or property damage that happened due to an accident or incident involving you or a member of your household.
Medical Payments to Others: This Covers the medical costs for guests in the house that are injured at your residence. It holds either you are liable or not. Medical payments include x-rays, doctor’s fees, or hospital stays. This policy does not cover you or other members of the household.
Additional Living Expenses/Loss of Use: This Covers for additional living expenses for damages to your apartment that is severe which makes you temporarily out of the shelter. It could include restaurants, hotels, etc.
Few circumstances are needed where additional renters coverage is worth the risk. It is appropriate if you have anything of high value like an expensive piece of jewelry, a device, etc.
The Pros of Buying Renters Insurance
Spring for a lower deductible usually makes your insurance premium higher.
Renters insurance is cheap and very affordable. Easy to get, and has some huge upside.
Deciding to stay without a policy because of premium payments may end up being a big financial mistake.
Take actions now and leverage on the tips to bringing your renter's insurance cost to the barest minimum.