There is not a specific amount of renters insurance that is right for every person or family. To determine how much coverage you need, it is important to inventory your possessions and consider the possible liabilities you face in association with the home. Armed with a home inventory, you can then shop for renters insurance online to find a price that fits within your budget from a company you can put your trust in.
What Does Renters Insurance Cover?
A standard renters insurance policy is specifically designed to cover your personal property and home liability needs. If your home burns down or is robbed, your personal property will be replaced according to the terms of the policy. And if a friend is injured tripping on throw rug, your policy would pay for the injury and the replacement of your property damaged breaking her fall. Without renters insurance, you would be responsible for the medical bills and replacing a coffee table out of your own pocket.
Creating a Home Inventory
Your renters insurance needs to be sufficient to cover the value of your personal property. To calculate how much renters insurance you need, it will help to create a home inventory. The easiest way to create a home inventory is to use a video camera and meticulously go through every room, recording everything it contains. If you suffer a loss from disaster or theft, the home inventory will serve as your proof of ownership and of the condition of the items insured.
Liability Insurance Concerns
Another aspect of renters insurance is liability coverage for injuries or damages sustained by someone other than your immediate family. Bodily injury liability will pay for injuries someone sustains as a result of you, your dependents, or your property. For instance, if your landlord tripped over a throw rug and sprained her ankle, your liability coverage would pay for her medical care. Property damage is similar, but related only to property rather than injuries. If you own pets, you should consider some specifics regarding renters insurance for pet owners.
Adjusting the Deductibles on Your Renters Insurance
Once you have determined how much insurance you need, you can still reduce the costs by looking for discounts and using a low-cost strategy. One way to lower costs is to raise your deductible. With a high enough deductible, your premiums can be extremely low, but take care not to set the deductible higher than you can realistically pay out of pocket. Before your insurance will pay a claim, you will be required to meet the deductibles of then policy. There are also other ways get cheap renters insurance and as always, comparing renters insurance quotes on a regular basis will help ensure you’re paying the lowest possible prices.