Renters insurance is a policy that provides most of the benefits of homeowners’ insurance, but s designed specifically for individuals renting an apartment.
This policy does not include cover for the dwelling or structure, with the small exception of small alterations that a tenant makes to the structure.
The tenant’s personal property is covered against fire, theft and vandalism.
3 main types of coverage available:
- Loss of use
- Personal property
- Personal liability
What does renters insurance cover?
Common perils covered by renters insurance include:
- Theft
- Water damage
- Vandalism
- Fire
- Smoke
- Lightning
What affects the cost of renters insurance?
The level of coverage has an effect on the overall cost of renters insurance. While it’s important to get cheap renters insurance, it’s more important to make sure that you get adequate coverage.
The location of the property that is rented is an important determining factor. If the location is a high crime area, insurance companies may charge higher premiums. If you rent property in a relatively safe area, you may be more likely to get cheap renters insurance.
The amount of the deductible. (This is the amount of money that you pay out of pocket before the insurance kicks in).
Replacement costs versus the actual cash value of insured items of the tenant.
How to find cheap renters insurance:
Find the best insurance companies
Look for an insurance company that excels in terms of policy management, coverage and cost.
Search online.
These days it’s easy to get a free online quote and to learn exactly what your insurance rates will be. The best insurance companies provide access to simple calculator tools to help you estimate the cost of your possessions.
Shop for discounts
Various insurance companies often offer discounts, such as multi-policy discounts, claims-free discounts, as well as discounts for protective devices fitted on the rental property.
