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Determining Which Renters Insurance Policy is Right for You

When you’re living in an apartment rental, getting a renters insurance policy is one of the smartest things you can do for yourself.  In fact, in the event of a disaster of any sort, it could mean the difference between a serious struggle and a speedy recovery.  Renters insurance can protect the value of your belongings in the event of theft, water damage, lightning, fire, smoke, or vandalism, among others.  Additionally, it can help to protect your neighbors should they suffer damages due to your negligence.  Certain policies will even go as far as to cover you in the unfortunate event that someone is injured on your property.  So, the question is not whether or not you should get renters insurance.  It is actually which policy is right for your needs?  In order to help you determine that, let’s take a look at some of the factors that will affect your policy.

Budget

Typically, it won’t cost you an arm and a leg to insure your apartment rental.  In fact, the average policy will run under twenty dollars a month, which is a small price to pay for peace of mind.  If you can set aside five bucks a week to put towards your insurance, you can usually find pretty excellent coverage.  Policy costs will fluctuate based on your particular needs, so the next step is to determine what your needs are.

Level of Coverage

renters insurance policy and coverageThe top renter’s insurance companies will offer four basic types of renters insurance; personal property coverage, liability coverage, medical payments to others, and additional living expenses if your apartment rental is deemed uninhabitable.  They will also likely each offer extended coverage (also referred to as a floater policy), which is appropriate if you have one or more high-value items, such as an expensive piece of jewelry.  How many, and which ones of these you opt-in for will affect the price tag of your policy.  To determine what level of coverage you may need, most companies will have easy-to-use estimation tools available on their websites, as well as online quote tools to give you an idea of your monthly cost.

Location

Your location will be another factor that will affect the cost of your renter’s insurance policy.  If your apartment rental is located in a high-crime area or within a major city, your policy is obviously going to be a bit higher than that of a comparable policy for an apartment in a rural area.

Deductible

As with other insurance policies, your renter’s insurance will likely have a deductible that needs to be met before it will pay out.  A deductible is the out-of-pocket money you will be expected to pay.  The idea behind this is pretty standard.  If you choose a policy with a lower deductible, your monthly premium will be a bit higher.  If your policy has a higher deductible, your monthly premium will be a bit lower.  Don’t, however, be tempted to fall into the trap of automatically choosing the policy with the higher deductible and lower monthly cost.  Remember why you are purchasing the policy in the first place.  If you have a disaster, you want to make sure that you have access to the cash you need to meet your deductible.

Replacement Cost vs. Actual Cash Value

Most policies will offer the choice between coverage for the full replacement cost or actual cash value of the items within your apartment rental.  If you choose replacement, you will be reimbursed for the full amount that you paid for the items in the home.  If you choose cash value, the items will be pro-rated to reflect their current value and you will receive reimbursement for that amount instead.  Choosing replacement cost is the more expensive alternative.

Discounts for Your Renters Insurance Policy

Lastly, when you are looking for the right policy for your apartment rental, you may want to look at using a company you are already insured with.  Many of the larger insurance companies will offer valuable discounts for bundling your services and holding multiple policies with them.  You might also look for companies offering claims-free discounts, which are available if you haven’t filed a claim for a certain amount of time.  Additionally, look for a policy that offers discounts for the safety precautions you are already taking to protect your property.  Insurance companies love to see that you already have smoke detectors and/or security systems installed.

Looking for a Rental Apartment in Hattiesburg?

Now that you have a better understanding of why renters insurance is so important and how to snag the best deal, it’s time to find your new home.  At Hattiesburg Apartments, we’re ready to embark on the journey with you!  We have access to 17 of Hattiesburg’s top-rated apartment communities, including options in every budget range, convenient locations, and outstanding amenities.  Take a look at what we have to show you and contact one of our team members today to get your search underway!

Posted by: southgaterealtyllc on July 26, 2018
Posted in: General