As a result of rising home prices and lending restrictions, a lot of people are now renting than buying. In fact, renters account for more than 30% of all households. The good thing about renting is that it is less expensive as compared to buying since you do not spend money on various things such as repairs, property taxes, homeowner’s insurance, and maintenance. However, if something happens to your property, the landlord is not responsible if your possessions get lost or damaged. Therefore, there is a need to have renters insurance to offer you the protection you need. In fact, eRenterPlan is one of the leading renters insurance providers around.
Determine Right Coverage Amount
You should note that renters insurance is meant to cover the cost of replacing your possessions as a result of theft, natural disaster, or an accident. It is estimated that an average renter has $40,000 worth of possessions, but the amount of coverage depends on a lot of factors.
When you try to determine the policy amount, you should create an inventory of possessions that can offer you an idea of the coverage amount. List down your items, when you bought them, how much you paid for them, and their current worth. After doing all these, you can have an idea of the amount of coverage to seek. Remember that renters insurance not only covers your property, but the policy should also comprise liability coverage.
Know What is Not Covered
You should note that renters insurance covers a lot of things, but there are times your claim may be rejected. For instance, some policies do not include coverage that is caused by floods or earthquakes. Therefore, you may need to purchase another insurance policy that covers these events. As you shop around, ensure you get detailed information about what is and what is not covered.
Bundle Your Renters Insurance
It is advisable to build your renters insurance policy with other insurance policies you have. In this way, you can save a lot of money. You can check with your vehicle insurance company to find out whether they provide renters insurance. When you bundle different insurance policies together, you can easily save up to 30% of the total cost of premiums.
Go for a Higher Deductible
When you choose a deductible, it means you will pay more upfront cost whenever something happens to your stuff, but your monthly premiums are lower. In the end, the amount you save on premiums may be enough to offset the expense when you file a claim.