What Is The Process For Getting Renters Insurance?

At Insurance by Castle, our focus is on providing landlord insurance to California landlords and apartment owners. As a landlord, it’s critical for you to help your tenants understand why renters insurance is important; this not only protects them, but also you and your business. Part of this is helping them also understand the renters insurance process. Feel free to share the information below with your tenants so they know what to expect.

Renters Insurance Rates

Per industry website insurance.com, you can expect to pay an average of $17 a month for a renters insurance policy that includes $40,000 in personal property coverage (with a $1,000 deductible), and $100,000 in liability coverage.

Understanding Personal Property Coverage

Personal property coverage is one area where there is some variability. Do you have expensive furniture and electronics? You may wish to pay more for a policy with a higher limit for personal property. If you’re a student renting an apartment on campus, $40,000 worth of personal property coverage might be more than you need.

Your personal property coverage will be either actual cash value or replacement cost. Actual cash value is less expensive because it compensates you for what your items are currently worth at the time your claim is filed, with depreciation factored in. You might have paid $2,000 for a top-of-the-line computer 10 years ago, but if its resale value now is $200, that’s what you’d receive from your renter’s insurance. Replacement cost provides you compensation for a replacement comparable in value, function, and quality. These policies are more expensive, but they may be worth it if you have a number of high-value items like electronics that depreciate quickly.

Other Factors That Impact Monthly Renters Insurance Costs

You should also understand the deductible—with a higher deductible, you’ll have a lower monthly payment. The caveat here is that if you ever need to make a claim, you’ll have to meet your deductible first. In other words, if you have a $1,000 deductible and you suffer $3,000 worth of property damage, you will have to pay $1,000 out-of-pocket and your renters insurance will pay the rest.

Your renters insurance provider will also adjust your rates based on your overall risk. Living in a high crime area, whether you smoke, your pets, your credit score, and any safety measures used in your building all impact what you pay for insurance.

Getting a Renters Insurance Quote

Now that you understand how the cost of renters insurance is determined, it’s time to get a quote. We recommend doing research online to find renters insurance policies that provide the type of coverage you need. If you have car insurance, you may wish to see if that insurer also offers renters insurance, as you may get a discount for bundling your policies. You’ll also want to make a rough estimate of the value of your personal property to help you decide how much insurance you need.

The easiest way to get a renters insurance quote is to apply for one over the internet, but you can also call insurance providers or even meet virtually with an agent to speak with them further about your needs. If you’re not sure what kind of coverage you need, there’s no better resource than an experienced insurance agent who can listen to your concerns and your situation, then present you with your best options.