How to Get Renters Insurance (Apartment Hunting 3/3)

Getting Renters Insurance

Jasmine, a State University junior, is about to move into her first apartment. She understands the importance of renters insurance but doesn't know how to get it. This section provides guidance on how to shop for the best renters insurance plan.

Shopping for Renters Insurance

• Jasmine can go online and get quotes from insurers or contact a local insurance agent.

• Alternatively, she can use a preferred website that offers easy access to great renters insurance plans.

Eight Rules for Renters Insurance

To ensure proper coverage and save money, Jasmine should follow these eight rules when getting renters insurance.

Rule 1: Reimbursement for Full Replacement Cost

• Opt for plans that reimburse the full replacement cost of an item, not just its cash value.

• Cash value takes depreciation into account, which may result in lower payouts.

Rule 2: Choose a Higher Deductible

• Select a renters insurance plan with the highest deductible you are willing to pay.

• Higher deductibles lead to lower monthly premiums.

Rule 3: Read the Fine Print

• Before getting any renters insurance plan, carefully read its fine print.

• Understand all terms and conditions to avoid surprises later on.

Rule 4: Shop Around Every Three Years

• Regularly shop around for renters insurance plans every three years.

• You may qualify for lower rates based on changing circumstances.

Rule 5: Do a Home Inventory

• After obtaining your policy, create a home inventory listing all items in your apartment.

• Include costs and ideally attach photographs as proof of ownership.

Rule 6: Additional Coverage for Valuables

• Consider adding expensive artwork, furs, or jewelry to your policy if they are not well covered by standard renters insurance.

• Paying a little extra can provide added protection for these items.

Rule 7: File a Claim Promptly

• If your property is damaged or stolen, contact your insurer and file a claim as soon as possible.

• Reimbursement may be provided even if the incident occurred outside of your apartment.

Rule 8: Roommates and Insurance

• Avoid adding roommates to your insurance plan.

• Reimbursement checks are split equally among all policyholders, which can create complications if only one roommate's property is affected.