A Guide to Renters Insurance
Part 3b
Choose an Insurance Company and begin to Apply for Coverage

Choose an Insurance Company
Once you've figured out how much insurance you need, you'll be ready to locate insurance companies that offer renter's policies in your area. To find a company, you can simply like contacting us we represent several companies and can "shop" for the best price and coverage our companies provide.  Most of our companies also offer discount when you "Bundle" your policies

Starting the Application
Most of the information can be obtained over the phone or even from the website of the company. You may not even have to go and see them in person, although we would like to meet you in person. This process only takes a few minutes.

The application will be relatively simple to complete. The only questions that might trip you up are in regard to the type of construction of your dwelling, year built, and type of roof material used. If you don't know ask your landlord.

Fine-Tuning Your Policy 

The two types of coverage available to renters are actual cash value and replacement value. Actual cash value coverage pays what the property was worth at the time damage or loss occurred and is the least expensive type of renter’s insurance available. Replacement value pays the cost of replacing the items or property and is about 15% more expensive than actual cash value coverage.

Unless you're on the tightest of budgets, it's wiser to opt for replacement cost coverage. It ensures that if, say, your couch is destroyed in a fire, you'll receive the full $1,000 you'd need to buy a spanking new model instead of the couple hundred dollars that your old sofa was worth due to depreciation. While replacement cost coverage tends to be slightly more expensive, the difference in premium tends to be negligible when weighed against the huge increase in coverage you get.

This is also when you'll want to decide which deductible best fits your financial situation. As with all types of insurance, the lower your deductible, the higher the premiums, because with a low deductible, the insurance company will need to cough up more money in the event of a claim.

Deductibles can typically range from $500 to as much as $2,000. Consider how much you can afford to spend replacing your belongings in the event of a major loss, and then insure yourself for the difference. Your deductible can be as low to start, and you can always increase it later as needed

A Guide to Renters Insurance
Part 3c Pay and review your policy
A final word.

 

Posted 12:00 PM

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