Renters Insurance: Reviews & Comparisons
Just because you’re renting, doesn’t mean you don’t need to worry about insurance. If an unexpected event like a fire, burglary, or accident was to happen, your personal property would not be covered by your landlord. Further, you can be held liable if a guest is hurt on your property.
This is where renters insurance comes in. But, how do you find the best value on renters insurance for your needs? Here’s what to ask to figure it out.
How should you compare renters insurance companies?
Many renters insurance companies exist so to narrow down your options, start with those that have a solid reputation and positive customer reviews.
SuperMoney has curated a list of the leading renters insurance providers below which features reviews from past customers. In a glance, you can see the providers and whether they are recommended or not.
However, consumer reviews will only get you so far. Here are some other questions you should consider when comparing renters insurance companies.
Which renters insurance companies serve your state?
The next step is to find out which of the reputable renters insurance companies serve your state. Not all insurers are nationwide so one of the first things to check is a company’s service area.
What is the financial strength rating of the renters insurance company you are considering?
Another important factor to consider is an insurer’s financial strength rating. This rating shows how likely it is that an insurer will meet its financial obligations, such as paying out a claim when you file one.
Financial strength ratings are typically based on factors such as the company’s financial holdings, how much it pays out in claims, and how much it makes in premiums.
Check the financial strength ratings of companies you are considering. You want to make sure you can trust them to pay your claims. When available, SuperMoney has combined the rating of multiple agencies to provide an average financial rating for each insurance company. We have included them in the listings below to make it easy.
What types of coverage does the insurance company offer?
Look at the coverage provided by the insurer. Common types of coverage include:
- Personal property: Helps to replace your personal property if it is damaged or lost in a covered incident such as a burglary or fire.
- Personal liability: Coverage of legal costs if someone is hurt in your home or you accidentally injure someone and are sued.
- Additional living expenses: Coverage of living costs if you can’t stay in your home due to a covered accident.
- Identity theft insurance: Insurance to cover the losses and damages caused if someone steals your identity.
- Guest medical protection: Coverage for medical payments if a guest is injured on your property.
- Property damage to others: Coverage if you accidentally damage or break someone else’s property.
- Add on coverage: Providers may also offer riders to expand your coverage for items such as expensive watches, jewelry, furs, or other valuables.
It’s important to identify which coverage types you need and then check whether potential insurers offer them. A great way to save is to tailor a policy to only include the coverage types you require.
What insurance riders do they offer?
Renters insurance policies will only approve claims when damages or losses happen due to a covered event. For example, policies often don’t cover damage caused by floods, earthquakes, and drain backup.
Check whether the policies you are comparing provide the coverage you need. If they don’t, you may still be able to purchase an additional rider that does include the coverage you need. Just make sure to include the extra cost when comparing policies.
Does the renters insurance company offer any discounts?
Renters insurance is usually pretty affordable but it never hurts to save. Some insurers offer discounts. Usually, you can save money if you add renters coverage to another insurance policy, such as auto coverage. However, there may be other discounts for having an alarm system, home monitoring system, smoke detectors, etc. So, when vetting a company, ask if there are any discounts available.
What are the coverage limits?
Always check the limits of the renters insurance offer sufficient coverage. For instance, a renters insurance with a low liability coverage will be cheaper, but it probably won’t be enough to cover the cost of repairing the property if you are responsible for a fire. You don’t want to have too much coverage either. So, estimate the cost of the property and your valuables determining the level of coverage you need.
Coverage limits affect the cost of insurance, so make sure you use the same limits every time you ask for a quote.
What are the deductibles?
A deductible is the share of money you will have to pay out of pocket when you file a claim. Renters insurance deductibles usually start at $500 or $1,000. Other companies set deductibles as a percentage of the total cost. For example, a 20% deductible means that in a $2,000-claim, you would have to pay $400.
When it comes to deductibles, it is usually best to go as high as you can afford. Usually, the higher the deductible, the lower your premium will be. This is because your insurance company will be paying less if you make a claim. You may be able to negotiate a lower premium if you’re willing to increase the standard deductible.
How much are the premiums?
Renters insurance premiums are based on many factors such as where you live, your credit history, your limits, deductibles, your coverage, and more. Remember to use the same insurance type, coverage limits, and deductibles when asking for quotes.
How is property valued during a claim?
An important factor when it comes to personal property insurance is how the insurer calculates the value of your belongings. There are two common approaches are actual cash value (ACV) and replacement cost value (RCV).
ACV is often preferred by insurance companies. It pays the actual cash value equal to the replacement cost minus any depreciation. So basically you get compensated for what you could get for that item if you were to sell it used. RCV pays you the full amount it will cost to replace the item with a new one of similar likeness.
Replacement cost value is more beneficial for policyholders because you can replace your item with a new one rather than just having the amount of money it was worth at the time of loss. When comparing insurers, be sure to compare this factor as it greatly impacts the value of the policy.
What do renters insurance reviews say about the company?
When an event happens that causes you to file a claim, it is usually a stressful time. You’ll want a renters insurance company that understands that and helps to ease the situation. Being so, convenience and service are very important. Look for a company with multiple contact channels, a 24/7 emergency line, easy online account management, and a helpful attitude when it matters most. You can learn more about the customer experience a company offers by reading real customer reviews below.
Find the right renters insurance company for you
Ready to protect your belongings and household to gain peace of mind while renting? Use the above questions to vet renters insurance companies and find the best fit for your needs.
We’ve made it easy for you by listing leading companies along with real reviews, financial ratings, and coverage types. Want to learn more? Simply click on a company to read an in-depth review.
Home and Renters Insurance Riders
Home and Renters Insurance
Financial Strength Rating
- Valuable Items
- Personal Property Protection