Renters insurance is often overlooked by many people who do not own their homes. However, it is a critical protective measure that may save renters a major headache later on. Many people think they are protected in the event their homes get broken into, or damage occurs to their belongings. However, a landlord’s insurance policy typically covers the general property, and may not cover items in a rental that can get stolen, damaged or destroyed.
Homeowners insurance is just as important as rental insurance. While the names of these policies are similar, they are actually two very different types of coverage. For instance, mortgage lenders usually require home buyers to purchase an insurance policy. In addition, homeowners coverage insures the actual home, and a basic policy does not often include protection against property damage. To learn more about the importance of these two types of policies, continue reading below.
If you are looking for cheap renters insurance, it is important to first review basic coverage options and add-ons. There are three main components to this type of coverage that may help you in the event of a natural disaster, break-in or similar emergency situation.
How much does renters insurance cost? Generally, it depends on the type of coverage you want. Adding onto your basic plan will raise your deductible and your premium. It also depends on where you live, the value of the items you want to protect and your credit history.
In addition, the best renters insurance will not necessarily charge you the most money. It is important to compare quotes from several different companies. When comparing quotes, make sure you ask for the same type of coverage from each company, so that your comparisons are accurate.
What does renters insurance cover? While it is more common to get coverage on an apartment, you may also get coverage for a condo or a house. The three main types of coverage include:
Covering your personal property may significantly reduce the cost of replacing a stolen or damaged valuable. Most plans will protect your belongings against risks or “perils,” including fire or theft. Every policy will also have a coverage limit, or a maximum amount that the company pays for damages or losses.
Liability coverage on apartment renters insurance may protect you if a person is injured and you are responsible. It may also cover the cost of another person’s property damages if you are responsible.
Finally, coverage on additional living expenses may help you pay for certain other costs associated with property damage. For instance, your policy may cover you for hotel costs if a natural disaster occurs, or for food expenses if you have to go above your normal food budget.
Is a popular plan such as State Farm renters insurance worth it? Ultimately, it depends on your needs and preferences. It is important to look not so much at the name of a company, but at its policies and customer ratings.
After performing a lot of research, you may still select a popular plan. However, you will be making an informed decision and will have a better chance at getting the best rate available.
Some of the most popular plans include:
While home insurance may seem like just another expense to add to your mortgage, it is actually a good investment strategy and may offer you very helpful protection. If a disaster were ever to occur, you may not be able to cover it with your savings alone.
Home insurance companies typically offer two main types of policies: the HO-2 and the HO-3. HO-2 policies typically cover named perils, which include, but are not limited to:
An HO-3 policy may give you coverage beyond named perils. In fact, it may cover you for all perils, except ones that are explicitly excluded. For instance, policies typically will never cover flooding, earthquakes, landslides, mold, infestations, nuclear hazard, government action and regular wear and tear.
The best homeowners insurance policies will provide the following types of standard coverage:
Keep in mind that these type of coverage options are available for non-traditional homes as well. For instance, you may purchase mobile home insurance, condo insurance and more.
If you are looking for cheap homeowners insurance, you will want to stick to the standard policies and not include any add-ons. The cost of your premium may also vary depending on your state and your credit rating.
As with renter’s coverage, make sure you compare home insurance quotes from at least three companies and ask for the same type of coverage from each company.
Some of the most popular providers include:
Many popular companies offer home and auto insurance, which combines two of your most important types of coverage. Bundling these two policies will save you time and effort, because you will not have to research other companies and compare quotes. It is also beneficial to your provider, because you are not taking your business elsewhere.
The best home and auto insurance providers will give you excellent discounts to make bundling worth your while. For instance, Geico’s multi-policy discount may save you money if you were going to purchase two separate policies.
If you want to bundle your car and home insurance, however, it is still important to do your research. Combining these policies for the sake of ease may actually be a disadvantage if you do not compare quotes. If you do not want to change your provider entirely, you may research different quotes and then present them to your agent to see if you can work out a better deal.